Back-to-Back upper circuit: This micro-cap stock skyrocketed 100 per cent, do you own it?

With a market capitalisation of just Rs 120 crore, the shares of the company have generated an impressive return of 58 per cent in just one week

Shares of Abhinav Capital Services witnessed a significant surge today. The stock commenced trading at Rs 163, marking a 3 per cent increase compared to the previous day's closing price of Rs 158.48. During the intraday session, the stock exhibited a remarkable 10 per cent surge accompanied by significant trading volume. Finally, the shares of the company concluded the day at Rs 174.32 which is 9.99 per cent or Rs 15.84 up from the previous day’s closing price. 

The stock's 52-week high and low are Rs 174.32 and Rs 68.30, respectively. Possessing a market capitalization of Rs 120 crore, the stock has showcased outstanding performance in recent periods, yielding a remarkable 95 per cent return in the last months and an impressive 415 per cent return in the past two years.  

Financial Performance  

In the June quarter of FY24, the company’s revenue from operations experienced a decline of 17.40 per cent YoY, going from Rs 7.99 crore to Rs 6.60 crore. The operating profit of the company fell from Rs 7.77 crore to Rs 6.31 crore and on a sequential basis it increased significantly from Rs 2.26 crore to Rs 6.31 crore, the operating profit stood at 95.61 per cent.    

Whereas the net profit of the company amounts to Rs 5.28 crore, the net profit margins stood at 80 per cent in Q1 FY24.  

The company's return on capital employed (ROCE) and return on equity (ROE) are at 23.2 per cent and 18.1 per cent, respectively.

Business Overview 

Abhinav Capital Services Ltd, a finance company based in India, primarily specializes in loan financing. It was incorporated on 8th December 1994 in Mumbai. The company extends financial assistance in the form of upfront capital, short-term loans, and alternative funding to corporations, corporate entities, and partnerships. Furthermore, the company allocates funds for investments in stocks and securities. The primary revenue source for the company is the interest accrued from the loans it disburses.