Remedium Lifecare Ltd. shares have surged 4.89 per cent reaching an upper circuit of Rs 6.44 per share from Rs 6.14 close prior with a volume today. The 52-week range for the stock had Rs 38.25 high and Rs 5.29 low. In terms of market capitalization, the company has over Rs 280 crores market cap supported by an impressive 100% CAGR over the past 3 years.

Many of such strategic goals and efforts are already visible in financial performance figures for Remedium Lifecare Ltd. Firstly, in Q1 FY25, the company reported net revenues of Rs 77.70 crore with Rs 1.64 crore net profits. For FY24, annual figures have shown an astonishing growth of total revenue by 698% to Rs 4,062.80 crore and profit after tax also increased nearly 504% and stood at Rs 32.72 crore at the end of the year. This increase in earnings is a result of company expansion strategies coupled with good operational performance.

In this very context, Remedium Lifecare has opened REMLIFE GLOBAL PTE LTD, its fully-owned subsidiary in Singapore as part of the company’s growth-developing strategies which will be further implemented.

This subsidiary is set to assist with the purchase of a foreign project which is worth about USD 200 million. In order to facilitate this purchase, the firm has proposed Wave Capital Limited as the exclusive Lead Manager who will concentrate on targets with a net worth or enterprise value of more than USD 100 million. This project is an important step in furthering the international presence of Remedium Lifecare while reaffirming its priority to grow in these fast-developing geographies.

Remedium has also entered into a purchase contract with Alfa Chemistries and Solvents Ltd. for the supply of technical lithium carbonate with estimated annual supplies of 20-25 million USD, beginning in 2025. The two-pronged approach is aimed at positioning Remedium Lifecare as a major supplier in the Indian market for lithium carbonate which is important for electric vehicles, battery and portable electronics. The company will be able to develop strong domestic production capabilities by utilizing this modern technology and collaborating with contract manufacturers.

It was noted that the Remedium shareholders include public shareholders with more than 98.89%, while the promoters own only 1.11%. When it comes to a stock, one would be also interested in some of its financials which include a p/e ratio of 11x, a return on equity at 123%, and a return on capital employed at 100%. The investors have been rewarded rather well, as over three years the stock has provided returns of 443% and over five years delivered an astonishing 3185% returns.

Incorporated in 1988 Remedium Lifecare Ltd. is an agent for other drug manufacturers; the firm procures and supplies active pharmaceutical ingredients and intermediate chemicals on a worldwide basis. The Firm serves both innovative and generic drug developers by providing raw materials incorporated in the manufacture of medicines used in treating cholesterol, depression, asthma and allergy. With its diversified sourcing as well as distributing networks, Remedium Lifecare has evolved as one of the reliable partners in the pharmaceutical market ensuring continuity and growth for many years to come.

Story first published: Tuesday, November 5, 2024, 12:28 [IST]