Corporate Feature     

Published: Feb 28, 2023
Updated: Feb 28, 2023

Rajnish Wellness

Small cap that makes giant strides

With a market capitalisation of Rs 1,500 crore, Rajnish Wellness Ltd, a small-cap pharmaceutical entity, has taken giant strides in the last few years and has emerged as a pharma company to watch out for. The stock has emerged as a multi-bagger and the wealth of shareholders has grown over 11-fold in the last one year, i.e Rs 1 lakh invested in the company’s shares on February 18, 2022 has grown to Rs 12.5 lakh on February 17, 2023.

Incorporated in 2015, Rajnish Wellness is a leading brand manufacturing and selling various ayurvedic medicinal products for personal sexual wellness. The company’s flagship brand, ‘PlayWin’, has taken sexual wellness to a new high. The company has a presence in over 21 states with over 500 super stockists and 10,000 distributors having a presence in more than 1 lakh medical stores pan India. Its products are also available on leading e-commerce and online platforms, including Amazon.in, snapdeal.com and indiamart.com.

Rajnish Wellness launched its IPO on the BSE SME platform in June 2018 and subsequently migrated to main board in May 2022. For FY22, the company’s sales reported growth of 98% while net profit grew 290%.

STOCK SPLITS

The company has rewarded its shareholders with bonus issues in the last two years. The first bonus issue of 5:4 was announced in December 2021 (5 bonus shares for every 4 held by the shareholders). Again in July 2022, a bonus issue of 2:1 was announced (2 bonus shares for every 1 held by shareholders). Subsequently, the face value of Rs 10 per share is now Re 1 per share after two stock splits. In July 2022, the company announced a stock split from a Rs 10 face value to Rs 2. Recently, in January 2023, the stock was further split from a Rs 2 face value to a Re 1 face value.

The company has announced major expansion plans, whereby it aims to ramp up its franchisee brand stores, Dava Discount, from the current 80 stores to 120-plus in the current fiscal.

Says Rajnishkumar Singh, promoter and MD, “We are very pleased to win this prestigious contract from Eastern Railway and will look to leverage the partnership over the next 5 years. The company has taken important strategic initiatives in the recent past with a focus to expand its product line, adding more channel partners, etc. We are hopeful that after the proposed expansion, we will be able to execute our growth strategy in a manner that creates exponential growth in value for all stakeholders while consistently delivering quality products.”

Highlights

Thumbs up by Eastern Railway : The company has received approval from Eastern Railway to set up 270 wellness centres at stations.

Shareholder wealth has grown over 11-fold in the last one year; Rs 1 lakh invested in this company on Feb 18, 2022 has grown to Rs 12.5 lakh on Feb 17, 2023.

The company has rewarded its shareholders with two bonus issues and two stock splits in the last 2 years. In December 2021, it announced a bonus issue of 5:4 and another bonus of 2:1 in July 2022.