After Stock Split Of 1:2, This Multibagger Smallcap Stock Still Gives 3,000% In Less Than 9 Months

Remedium Lifecare is one of the highest-gaining stock on the Indian market this year! Starting in September month, Remedium shares have adjusted to its stock split in the ratio of 1:2, which meant its shares halved from around Rs 1,600 levels to near the Rs 800 mark. But even still, Remedium has made many of its investors hefty rich by giving multi-fold returns in less than nine months. To be precise, this multi-bagger smallcap stock has rallied by nearly 3000% so far in 2023.

On Wednesday, Remedium Lifecare ended marginally down to Rs 768.45 apiece on BSE. The stock touched an intraday high of Rs 799.95 and a low of Rs 760 apiece respectively.

After the stock split, the stock's 52-week high is Rs 898.30 apiece and the 52-week low is Rs 24.30 apiece. The stock has been on a gaining spree after sub-division, and this week investors are cashing in their gains.

The company's stock split in the ratio of 1:2 meant that --- one existing equity share having a face value of Rs 10 each -- was sub-divided into two equity shares having a face value of Rs 5 each. The purpose of the split is to enhance the liquidity in the capital market, to widen the shareholder base and to make shares affordable/accessible to retail investors in the stock market.

Remedium has made a long and stellar journey in a short period of time on BSE. The stock was less than Rs 50 on January 2, 2023 (Rs 49.82 apiece), but zoomed by a breathtaking Rs 1,574.39 or 3,160.2% when it touched an all-time high of Rs 1,624.21 apiece on March 7, 2023.

The stock has already adjusted to the 1:2 stock split and is currently near the Rs 800 level. Even still, Remedium stock has rallied by Rs 741.59 or 2,977.08 year-to-date. This impressive performance is despite market volatility.

As per Trendlyne data, in a year, Remedian has given 3040.4% returns versus Nifty 50's 11.1% gains. The stock's MFI is in mid-range at 38 and its RSI is also in the similar range to 42. The 1-year beta of the stock is 0.02, which indicates very low volatility.

Remedium Lifecare was originally incorporated as Roxy Engineers as a private company in Punjab in February 1988. The company underwent a name change in May 1995 as Roxy Exports. But later in February 2020, the company's registered office was shifted from Punjab to Maharashtra with effect from February 18, 2020. Later, the name further changed and Remedium Lifecare was birth with a fresh certificate of incorporation in Mumbai in November 2020.

Till the quarter ended June 30, 2018, the company was engaged in the business of manufacturing and distribution of bicycles and their parts. From FY19 till FY20, the company was into manufacturing and trading of atmospheric water generating machines known as "Air-O-Water".

But Remedium Lifecare is now engaged in the trading of pharmaceutical products and various raw materials used in the pharmaceutical industry including but not limited to Aminoisophthalic Acid, Tellurium(IV) Oxide, Grignard Reagent, Iodine, Selenium Metal Powder, Trimethyl Solfoxonum Iode(TMSI). With the Remedium Lifecare entered the Bombay Stock Exchange (BSE). The stock trades under the small-cap basket.

The company's FY23 profit stood at Rs 5.43 million, while revenue came in at Rs 509.84 million.

Recently, the company's stock also turned ex-bonus for bonus shares in the ratio of 9:1. This means that the company will issue nine bonus equity shares having a face value of Rs 10 each against every existing five equity shares having a face value of Rs 5 per share.

On August 29, Remedium updated on bonus shares. It said, in compliance with Sebi's provisions, the "Bonus Shares would be allotted to the shareholders in demat mode only. Accordingly, the shareholders holding the shares in physical mode are requested to provide their demat account number to the Company / us so that their bonus shares are credited to their respective account."