1:5 Stock Split: Ex-Date In 2 Days, 1600% Gain In 1 Year; Buy The Stock?

Remedium Lifecare Ltd.'s shares were up 1.06% at Rs. 697.55 after opening the day higher on the BSE at Rs. 722.20 a share. The spike in the stock price occurred before the ex-date, falling on Friday, February 23, 2024, in order to facilitate a 1:5 stock split. One of Dalal Street's multibagger stocks is Remedium Lifecare, which has produced a multibagger return of 1,603% in only a single year. Nonetheless, the firm has announced plans to subdivide equity shares in order to increase capital market liquidity, expand the shareholder base, and lower the price of the shares for small and retail investors.

Remedium Lifecare Stock Split

"Subject to the approval of the members through Postal Ballot only through remote e-voting facility and appropriate authorities, the Board has considered, approved and recommended for Sub-division of Company's 1 (One) Equity Share of Face Value of Rs. 5/-each into 5 (Five) Equity Shares of Face Value of Re. 1/-each held as on the Record date," said Remedium Lifecare in a stock exchange filing.

Friday, 23rd February, 2024 has been fixed as the record date for the purpose of sub-division of face value of equity shares from Rs. 5/-each to face value of Re. 1/-each, according to the company.

On Monday, 19th February, the company informed stock exchanges that "We would like to inform you that Remedium Lifecare Limited has received NEW ISIN from CDSL and NSDL pursuant to Subdivision/ Stock Split of Face Value of the Equity shares from Rs. 5/-each to Re. 1/-each. Please note that the New ISIN of the Company is INE549S01036 and Subdivision/ Stock Split of Equity Shares will take effect under New ISIN."

Remedium Lifecare Financials

In the December 2023 quarter, the company's net sales were Rs 1,834.18 crore, a 939.33% growth from Rs 176.48 crore in the December 2022 quarter. Its net profit jumped by 4419.81% from Rs. 1.52 crore in Q3FY23 to Rs. 68.78 crore in Q3FY24. EBITDA climbed 4339.35% from Rs. 1.55 crore in the comparable quarter of FY23 to Rs. 68.81 crore in the reporting quarter.

Remedium Lifecare Share Price Target

Remedium Lifecare stock price is bearish and overbought on the Daily charts with strong resistance at 737. A daily close below support of 605 could lead to a target of 430 in the near term, said AR Ramachandran from Tips2trades.

Disclaimer

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