The shares of this pharmaceutical company hit 5 percent upper circuit after the company bagged a significant multi-year supply contract for Rs 182 crore.
Price movement
With a market capitalization of Rs 160.07 crore, the shares of Remedium Lifecare Ltd were trading at Rs 3.97 per share, increasing around 4.75 percent as compared to the previous closing price of Rs 3.79 apiece.
Reason for rise
The shares of Remedium Lifecare Ltd have seen positive movement after bagging a significant multi-year supply contract from a renowned pharmaceutical distribution company based in the United Kingdom, involving the supply of a range of Active Pharmaceutical Ingredients (APIs), Intermediates, and Specialty Chemicals, for a consideration Rs 182 crore, which is more than its market capitalization.
Financial condition
Looking forward to the company’s financial performance, revenue tumbled by 32 percent from Rs 1,834.18 crore in Q3FY24 to Rs 38.15 crore in Q3FY25 and net profit collapsed by 98 percent from Rs 46 crore to Rs 0.76 crore.
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Product Profile
The company manufactures a range of Active Pharmaceutical Ingredients (APIs), including lipid-lowering agents, antidepressants, anti-asthmatics, antihistamines, and more. It also produces CRMs and advanced intermediates, such as Tartaric Acid Salt, Thiophene Tosylate, Pantoprazole Sulphide, Cetirizine Base, and others.
Ratio analysis
The company’s critical ratios show that the return on equity increased from 52.35 percent in FY22-23 to 76.19 percent in FY23-24, while the return on capital employed increased from 70.63 percent to 126.46 percent. The net profit margin (NPM) for fiscal year 23-24 is 0.80 percent.
Company analysis
Remedium Lifecare Limited’s business comprises trading and sale of active pharmaceutical ingredients (APIs) and intermediates to innovator and generic pharmaceutical players in both domestic and international markets including the regulated markets.
Written by Abhishek Singh
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