The shares of small-cap company clocked 20 percent upper circuit in Thursday’s trading session after reporting an increase in net profits by 4,425 percent YoY. The shares have delivered a whopping 1,239 percent returns to its investors in one year.
With a market capitalization of Rs. 1,106 crores, the shares of Remedium Lifecare Ltd started Thursday’s trading session on a higher note at Rs. 561.10 compared to its previous close of Rs. 467.60. During the trading session, the shares clocked 20 percent upper circuit at Rs. 561.10 apiece.
Such a bullish movement in the share price was observed after the company announced their quarterly results. Looking at the financial statement, the revenue increased by 291 percent from Rs. 468.57 crores during the September quarter to Rs. 1,834.18 crores in the December quarter. In addition, the net profits surged by 953 percent from Rs. 6.53 crores to Rs. 68.78 crores during the same period.
Comparing these metrics on a YoY basis, the revenue zoomed by 939 percent from Rs. 176.48 crores during Q3FY23 to Rs. 68.78 crores in Q3FY24. In addition, the net profits magnified by 4,425 percent from Rs. 1.52 crores to Rs. 68.78 crores during the same timeframe.
Earlier, the company made a strategic acquisition of state-of-the-art manufacturing facilities in Hyderabad to integrate and diversify into the pharma and healthcare arena. Furthermore, the company is actively expanding its global reach and diversifying its product portfolio.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 24.55 percent during FY 21-22 to 70.98 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 18.24 percent to 102.61 percent during the same timeframe. Furthermore, the net profit margin increased from 0.21 percent during FY21-22 to 1.07 percent during FY22-23.
Headquartered in Ludhiana, Remedium Lifecare was incorporated in 1988. The company is in the business of trading in Advanced Pharmaceutical Intermediates and other pharma products.
Written By Vaibhav Patil
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