6,000 per cent returns: This multibagger NBFC company hit upper circuit & 52-week high on execution of the SPA and acquisition of LKP Finance Ltd – details inside!

From Rs 4.17 per share to Rs 254.35 per share, the stock gave multibagger returns of 6,000 per cent in 3 years.

The stock market was trading in green with BSE Sensex Index and NSE Nifty-50 Index gaining 0.20 per cent and 0.24 per cent respectively. On the broader market, the BSE Mid-Cap Index surged 0.80 and BSE Small-Cap Index both gained 0.49 per cent.

Along with the market in green, shares of Mufin Green Finance Ltd hit 5 per cent upper circuit Rs 254.35 per share from its previous closing of Rs 242.25. The stock also made a fresh 52-week high of Rs 254.35 while its 52-week low is Rs 34.19 per share. The stock gave multibagger returns of 500 per cent in just 1 year whereas BSE Small-Cap Index is up by 65 per cent.

Mufin Green Finance Limited operates as an investment firm. The company offers investment advisory, asset management, capital preservation, and financial planning services. The company has a market capitalization of Rs 3,840 crore and has delivered good profit growth of 141 per cent CAGR over the last 5 years.  

Mufin Green Finance Ltd announced that the Board of Directors discussed and approved several key decisions. Firstly, they greenlit the execution of a Share Purchase Agreement (SPA) for acquiring 56,96,312 equity shares, equivalent to 45.32 per cent of the total paid-up share capital, along with full management and control of LKP Finance Limited, from its Promoters and Promoter Group. This agreement involves individuals such as Mr Mahendra V. Doshi, Mr Pratik M. Doshi, Ms Ira Pratik Doshi, Ms Samaya P. Doshi, Ms Shital A. Sonpal, as well as entities like Bhavana Holdings Private Limited and Sea Glimpse Investments Private Limited. The approval is subject to compliance with SEBI (SAST) Regulations, 2011, and subsequent amendments, as well as approval from the Reserve Bank of India. Additionally, the Board sanctioned the commencement of an open offer, in accordance with SEBI SAST Regulations, to acquire the aforementioned shares and management control.

Quarterly Results: The net sales increased by 221 per cent to Rs 21.13 crore, operating profit increased by 296 per cent to Rs 14.27 crore and net profit increased by 98 per cent to Rs 4.01 crore in Q2FY24 compared to Q2FY23.

Half-yearly Results: The net sales increased by 254 per cent to Rs 38.65 crore, operating profit increased by 351 per cent to Rs 25.29 crore and net profit increased by 135 per cent to Rs 7.46 crore in H1FY24 compared to H1FY23.

From Rs 4.17 per share to Rs 254.35 per share, the stock gave multibagger returns of 6,000 per cent in 3 years. In the past three years, the company has implemented three corporate actions: a final dividend of Rs 0.2 per share on September 2nd, 2022, a 2:1 stock split on April 13, 2023, and a 2:1 bonus share issuance on July 02, 2023. These actions have increased the number of outstanding shares and potentially impacted the company's stock price and financial ratios.

Disclaimer: The article is for informational purposes only and not investment advice.