Multibagger in just 6 months: Micro-Cap stock in green as the company's potential divestment of its wholly owned subsidiary, Bond Street Capital Private Limited!

The shares of the company have a PE of 7.35x whereas the industry PE is 21x with an ROE of 12 per cent.

LKP Finance Limited informed that a meeting of the Board of Directors of the Company is scheduled to be held on Friday, December 29, 2023 inter-alia, to consider and approve:

1. Divestment of entire shareholding in the wholly owned subsidiary of the Company - Bond Street Capital Private Limited, subject to requisite approval by the members of the company.

2. Sale of certain property(ies) and investments (in listed and unlisted companies) of the Company, Subject to requisite approval by the members of the Company.

3. Other related matters.

On Tuesday, shares of LKP Finance Ltd gained 4.06 per cent to an intraday high of Rs 234.30 per share from its previous closing of Rs 225.15. At the closing bell, shares of the company were trading in green, up 1.42 per cent to Rs 228.35 per share.  The stock is up by 80 per cent in just 1 month and gave multibagger returns of over 200 per cent in 6 months.  

Authum Investment & Infrastructure Ltd, a mid-sized NBFC player with a market cap exceeding Rs 13,000 crore, owns a 7 per cent stake in LKP Finance Limited. This investment suggests potential for future growth for both companies.

Financials of LKP Finance Ltd: The company has a market cap of Rs 287 crore. The shares of the company have a PE of 7.35x whereas the industry PE is 21x with an ROE of 12 per cent. The stock is trading at 0.83 times its book value. The company reported positive numbers in its Quarterly Results and annual results.

Founded in 1948, LKP Securities Ltd. is a financial powerhouse with a nationwide presence in over 200 cities. They specialize in trading and investing across various financial instruments, including shares, securities, and derivatives. As a registered Non-Banking Financial Company, their domain extends beyond just brokerage services. The company actively participates in both capital and debt market activities, offering expert assistance in areas like merchant banking, institutional equity, wholesale and retail debt markets, pension fund advisory, research, retail equity, distribution, and even depository services for financial products like mutual funds and insurance.

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