RPG Life Sciences Ltd Stock of Pharmaceuticals sector: Potential to give 314% returns.

RPG LIFE SCIENCES LTD
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RPG Life Sciences was first started in 1968 as a joint venture with Searle India Limited and GD Searle, USA.  In 1993, after GD Searle left India, RPG Life Sciences sold its stake to the RPG Group and the name of the company was changed to RPG Life Sciences Ltd. Thus, RPG Life Sciences became a part of the RPG Group in 1993.

RPG Life Sciences Limited was incorporated in the year 2007 in Pharmaceuticals sector.  It is a small cap company with a market cap of Rs 1,901.49 crore.

Work history and Milestones of RPG Life Sciences Limited

  1. Year 1968: RPG Life Sciences (formerly known as Searle India Limited) started as a JV with GD Searle, USA.
  2. Year 1993 & 1999:  In 1993 Life Sciences sold its stake to the RPG Group and in 1999 the name of the company was changed to RPG Life Sciences Ltd.
  3. Year 2001: The company began disinvestment of the agrochemicals business to focus on fermentation and biotechnology in the pharmaceuticals sector.
  4. Year 2010: An oncology division named NeoLife was launched by the company.
  5. Year 2016: The company acquired seven brands from Sun.
  6. Year 2016 Oct: Company launches urology division named Eurolife.
  7. Year 2019: RPG Life Sciences forayed into the therapeutic segment under Anti-Diabetic.

Achievements of  Life Sciences Limited

Mr. Yugal Sikri, Managing Director, RPG Life Sciences, was presented with the Outstanding Achiever Award 2020 at the RPG Annual Conference 2020.The company also registered its name in the India Book of Records in 2018 by making a record recipe of minim at number 17009 in a single day across India.  This is also an initiative of RPGLS towards eradication of anemia and malnutrition from India on the occasion of Health Tonic Day.

World Health and Wellness Congress and Awards 2020 Yugal Sikri, Managing Director, RPG Life Sciences, was honored with the Healthcare Leadership Award at the 4th World Health and Wellness Congress and Awards 2020 for his outstanding contribution in the field of healthcare.IDMA 2020 RPG Life Sciences received the prestigious IDMA Quality Excellence Award (Gold Award) among bulk pharmaceutical companies with a net ‘Annual Turnover of Rs. 100 crores.

RPG Life Sciences received the IDMA Corporate Citizen Award 2019 in ‘Companies valued below Rs.  500 crore turnover category for ‘Project Sanjeevani’, which addresses the issue of employment in the healthcare sector by skilling unemployed/underemployed women from low economic backgrounds.

5 reasons why we should invest in RPG LIFE SCIENCES LTD

RPG Life Sciences Ltd debts

The company RPG Life Sciences ltd has become completely debt free for the first time in the last 5 years.

Returns of RPG Life Sciences ltd

RPG Life Sciences ltd has given 68.65% return in last 1 year, 216.35% in last 3 years and 314.38% in last 5 years. The current stock price of RPG Life Sciences ltd is ₹1,169. If you hold 500 stocks of the company for 5 years, you can get a return of 314.38%, that is, if you have invested a total of 1,169*500=₹5,84,500.  So after 5 years you will have an income of 5,84,500*314.38% = ₹ 18,37,551 in which your profit will be ₹12,53,051 i.e. you will get more than double your investment.

In this, you can understand that the way the inflation rate is increasing by 6%, which is not affecting your  returns, at least you need 12% returns to stay away from the effect of inflation and this in the stock  you are getting returns of more than 12%.

Dividend records

RPG Life Sciences ltd will pay 150% dividend to its shareholders in 2023, 120% in 2022, 90% in 2021, 50% in 2020 and 30% in 2019.  You must have seen that the percentage of dividend is increasing every year and also the company has provided dividend to its shareholders time to time.

Financial performance of RPG Life Sciences ltd

RPG Life Sciences ltd has generated a total income of ₹ 149.59 crores in the first quarter of the financial year 2023-24 and a growth of 24.32% has been seen in total income IT.  Which is the highest revenue in the last 3 years.  There has been a growth of 115.30% in EBIT and 113.53% in PAT.  The net profit of the company has been 14.77%, which means the company has earned a profit of 22.9 crores.  Also, the current Basic EPS of the company is ₹13.36 as compared to ₹6.26 in the previous quarter.

PE Ratio

The full form of PE Ratio is price to earning ratio. Through PE ratio, we can know whether the stock we want to buy is cheap or expensive. The ideal value of PE ratio should be up to ₹ 20, it is neither too cheap nor too expensive. . But it is not necessary that the PE RATIO of a company’s stock is low, only then we should buy the stock because the stocks of growing companies trade on high PE only.

There is a formula to get PE Ratio

PE Ratio= The Current Price of Stock / EPS

Here the full form of EPS is Share on Earnings.  EPS means that how much profit the company is generating from its own shares.  The current EPS of RPG Life Sciences ltd is around ₹ 13.36.  And the PE ratio of RPG Life Sciences ltd is around ₹26.68.

Also Read : What is happening with Tata Power? is now the Time to Buy?

Market Capital

RPG Life Sciences ltd: Small cap company with a market cap of Rs 1,901.49 crore.

Short term investment in small cap stocks

There are many such small cap companies listed in the stock market, in which the growth potential is very high. There is a specialty of small cap stock that if the market is going very high, then the price of the stock also increases rapidly and the same. If the market is falling, then the prices of small cap stocks fall as fast as possible. If we want to invest for short term and get good returns, then the best option for that is the stock of small cap companies. But in small cap  There are both high return and high risk. 

Analyzing for small cap stock

If you have a good knowledge of stock market, then you can easily analyze in which year which small cap index or stock will be on its high pick and when on low pick and which stock has the potential to move forward,  Accordingly, you can invest in Small Cap Index for 1 year or 3 years.

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