Madhusudan Kela’s portfolio stock & promoters increase stake: This multibagger small-cap company reports a 118 per cent jump in net profit to Rs 130.9 crore!

The stock gave multibagger returns of over 100 per cent in just 1 year and a whopping 1,300 per cent in 3 years.

Choice International Ltd was incorporated in 1993. It is an integrated and diversified financial services group. It provides a wide range of financial services that include broking & distribution, investment banking, financial services to business advisory, regulatory compliances to government authorities & other corporate entities, retail loan distribution, mutual fund distribution, technical services, and other ancillary services.

The company announces its results for the quarter and year ending March 31, 2024. Here are the details:

Consolidated Financial Performance for Q4FY24 vs Q4FY23

• Total Revenue of Rs 216.4 crore vs Rs 139.5 crore [up 55 per cent].
• EBITDA of Rs 69.4 crore vs Rs 47.4 crore [up 46 per cent]
• PAT of Rs 39.4 crore vs Rs 30.3 crore [130 per cent].
• Revenue contribution of 60 per cent of stock broking, 29 per cent of Advisory and 11 per cent of NBFC.

Consolidated Financial Performance for FY24 vs FY23

• Total Revenue of Rs 759.3 crore vs Rs 395.2 crore [up 92 per cent]
• EBITDA of Rs 227.8 crore vs Rs 108.7 crore [up 110 per cent]
• PAT of Rs 130.9 crore vs Rs 60.1 crore [up 118 per cent]

Also Read: 4:1 bonus shares & Rs 2,326 crore order book: This multibagger engineering company is into expansion of business with acquisition of EMC Ltd; details inside!

The company experienced significant growth across several key financial metrics. The number of Demat accounts surged by 25 per cent year-over-year (YoY) to 8,48,000, indicating strong investor participation. Assets Under Management (AUM) also saw impressive gains, with stockbroking AUM rising 31 per cent YoY to Rs 35,000 crore and wealth product AUM skyrocketing 72 per cent YoY to Rs 625 crore.

The insurance business boomed as well, with a staggering 212 per cent YoY increase in premiums generated (Rs 63 crore) and a 109 per cent YoY surge in policies sold (14,567). The NBFC segment further strengthened its position with a total loan book of Rs 482 Crore at the end of Q4FY24, with the retail loan book contributing Rs 307 crore. Additionally, the company maintained a healthy asset quality with a low Net Non-Performing Assets (NNPA) ratio of 1.77 per cent as of March 31st, 2024. Finally, the advisory segment demonstrated its value with a robust order book of Rs 580 crore, representing a 53 per cent YoY increase.

Earlier, the shares of the company ex-traded bonus shares on the ratio of 1:1 i.e., 1 new bonus share having a face value of Rs 10 each for every 1 share held by equity shareholders as of record. The ex-date for bonus shares was February 20, 2024.

An ace investor, Madhusudan Murlidhar Kela has owned a 12.06 per cent stake in the company since March 2022 (Q4FY23) till today. Additionally, the promoters of the company increased their stake to 58.21 per cent in March 2024 compared to 57.98 per cent in December 2023 and 55.32 per cent in March 2023.

The company has a market cap of over Rs 6,600 crore and has delivered good profit growth of 37.5 per cent CAGR over the last 5 years. The shares of the company have a PE of 51x, an ROE of 23 per cent and an ROCE of 24 per cent. The stock gave multibagger returns of over 100 per cent in just 1 year and a whopping 1,300 per cent in 3 years.

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