Penny stock below ₹5: Rajesh Wellness share price jumps over 5% on THIS business update

Penny stock 2024: Rajnish Wellness shares, priced below ₹5, surged over 5 per cent on Tuesday, October 15 following the company’s announcement to open 20 new Dava Discount outlets.

The healthcare and wellness company announced plans to open 20 new Dava Discount outlets across key cities in India, fueling investor interest and boosting the stock price.

Rajnish Wellness share price was trading in the green, up 4.12 per cent at ₹3.03 on October 15, at 2:39 pm on BSE. The stock rose 5.5 per cent in intra-day deals to the day’s high of ₹3.07. The company enjoys a market capitalisation of ₹232.85 crore. 

The company expects this expansion to generate an annual revenue of ₹300 crore to ₹400 crore. Each new outlet is projected to bring in ₹15 crore to ₹20 crore annually, with profit margins estimated between 5 per cent and 9 per cent.

Rajnish Wellness has positioned itself as a key player in the affordable healthcare market. The new outlets will cater to the growing demand for cost-effective medicines and healthcare products. These outlets will also feature the company’s in-house brand, PlayWin, which focuses on sexual wellness and personal care items.

The company’s leadership is confident about the potential impact of this expansion. The move is expected to strengthen Rajnish Wellness’ revenue base and profitability and enhance its foothold in the rapidly growing healthcare sector.

Rajnish Wellness overview

Rajnish Wellness, established in 2015, operates across multiple segments, including sexual wellness and personal care. Its franchise model, combined with a strong e-commerce presence, allows the company to tap into the broader healthcare market, which is expected to reach $41.78 billion ( ₹53.13 lakh crore) by 2029, according to industry forecasts.

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