90 per cent returns from its 52-week low: Only buyers in this penny stock at Rs 1.87 per share; hit the upper circuit on July 01

The stock gave over 90 per cent returns from its 52-week low of Re 0.98 per share.

Today, shares of Srestha Finvest Ltd jumped 5 per cent to Rs 1.87 per share from its previous closing of Rs 1.79. The stock’s 52-week high is Rs 2.18 while its 52-week low is Re 0.98. The shares of the company saw a spurt in volume by more than 2 times on BSE.  

Established in 1985, Srestha Finvest Ltd. is a multifaceted financial services company offering various solutions, including loans, financing, and investments. They hold a specific regulatory license: a Category B Non-Systematically Important Non-Deposit Taking NBFC - Investment and Credit Company. This allows them to provide loans secured by various assets (securities, movable and immovable properties), offer hire purchase and leasing options, and engage in trading and investing shares.

Srestha Finvest Ltd aims to raise Rs 48 crore through a rights issue by offering 24 crore new shares with a face value of Rs 2 each. Existing shareholders on the record date of June 24th, 2024 (revised from June 21st) will be eligible to participate. These shareholders will be entitled to buy 12 new shares for every 29 shares they already hold (at Rs 2 per share) in this 12:29 rights issue. The subscription window opens on July 4, 2024, and closes on July 18, 2024. If fully subscribed, the company's outstanding equity will increase from 58 crore shares to 82 crore shares.

Earlier, In a move to bolster India's clean energy and sustainability initiatives, Srestha Finvest Ltd partnered with Felix Industries Limited through a June 13, 2024 Facility Agreement. This collaboration allows Srestha Finvest to enter the loan market for projects focused on clean water access, water recycling, and renewable energy. By combining their expertise and resources, both companies aim to make a significant positive impact on the environment. Srestha Finvest has committed Rs 25 crore over the next one to two years to fund Felix's projects, while also strategically expanding into new technology sectors. The agreement specifically targets areas like clean water access, waste-to-energy solutions, recycling initiatives, green infrastructure development, e-waste management, and even waste-to-oil projects.

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Quarterly Results

The total increased by 710 per cent to Rs 564.16 lakh in Q4FY24 compared to the total income of Rs 69.68 lakh in Q4FY23. The company reported a net profit of Rs 506.35 in Q4FY24 compared to a net loss of Rs 461.37 crore in Q4FY23, an increase of 210 per cent.

Annual Results

The total increased by 269 per cent to Rs 1,013.01 lakh in FY24 compared to the total income of Rs 274.56 lakh in FY23. The company reported a net profit of Rs 173.86 in FY24 compared to a net loss of Rs 497.41 crore in FY23, an increase of 135 per cent. The company reported a net profit in FY24 after reporting a net loss for the past 5 years i.e., FY23, FY22, FY21, FY20 and FY19.

The company has a market cap of over Rs 150 crore and its 100 per cent stake is owned by the public. The stock gave over 90 per cent returns from its 52-week low of Re 0.98 per share. Investors should keep an eye on this micro-cap stock.

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