Pharma Company, Rajnish Wellness Announced Q1FY25 Results

On Wednesday, Rajnish Wellness announced its June quarter results for the financial year 2024-25. The company has reported a rise in sales by 91.54% to Rs 16.30 crore in the quarter ended June 2024 as against Rs 8.51 crore during the previous quarter ended June 2023. Net profit of Rajnish Wellness stood at Rs 0.17 crore in the quarter ended June 2024 as against Rs 0.55 crore during the previous quarter ended June 2023.

On Wednesday, the shares of Rajnish Wellness closed at Rs 4.57 with a market cap of Rs 351.20 crore. The 52-week high and low of the share is Rs 15.30 and Rs 4.42 respectively.

The company's maximum revenue is expected to come from the new 33cr stores which will encompass a large-scale supermarket with an investment of only Rs 50 cr. The company plans to open them by the start of FY26 with a first-year revenue of Rs 180 cr and EBITDA of 16.6cr. By the 3rd year, this division will garner the company a total of Rs 400cr in revenue and an EBITDA of Rs 54.5cr.

Previously, the company declared its Q4 FY24 results on 19 Apr 2024, showing a remarkable performance. The company's revenue saw a significant increase of 314.67% Year-on-Year, reaching Rs 0.28Cr in profit. In the same period last year, Rajnish Wellness had reported a loss of Rs 0.76Cr, making this year's turnaround quite impressive. The revenue growth of 24.8% compared to the previous quarter also indicates a positive trend.

On December 29 2023, the company said: "The board of directors have fixed on Tuesday, 10th January 2023 as the ''Record Date'', for ascertaining eligibility of shareholders entitled for corporate action of - sub-division/split of equity shares of the company, 1 (One) equity share having face value of Rs.2/- (Rupees Two only) each into 2 (Two) equity shares of Re. 1/- (Rupee One only)."

Before this, the company had turned ex-bonus in the ratio of 2:1 and ex-stock split from a face value of Rs 10 each to shares with face value of Rs 2 each in June 2022. Besides, the scrip went ex-bonus in the ratio of 5:4 in December 2021.

Incorporated in 2015, Rajnish Wellness Limited is a BSE-listed company in the business of selling various ayurvedic and ethical products for sexual wellness, and personal and medical care of the masses with a strong recall value. Rajnish Wellness Limited has a very strong network and its ports are available in all major medical stores across the country and various E-commerce platforms. Rajnish Wellness aims to provide solutions to enhance the well-being of common people through its range of products helping them to achieve the highest health goals.

In the first year of the operations, Rajnish Wellness could easily bag sales of more than 350cr and can easily close with PAT of more than 35cr (10%) PAT margins. This growth is guaranteed as businesses that have fixed contracts such as the 270 store contracts ensure constant and guaranteed sources of revenue with fixed profits.