Multibagger penny stock at Rs 1.93: Board approved preferential issue of 26,00,00,000 equity shares towards the conversion of outstanding unsecured loans!

From Rs 0.04 to Rs 1.93 per cent, the stock gave multibagger returns of 4,725 per cent in 3 years.

Today, shares of Standard Capital Markets Limited gained 2.66 per cent to Rs 1.93 per share from its previous closing of Rs 1.88. The stock’s 52-week is Rs 3.52 and its 52-week low is Rs 1.15.

Standard Capital Markets Limited announced a correction to the issue price of their recently announced preferential share issue. The price per share is Rs. 2.75. They are moving forward with issuing 26,00,00,000 new equity shares (face value Rs 1 each) at Rs 2.75 per share to convert outstanding unsecured loans of Rs 71.5 crore, subject to member and regulatory approval. This preferential issue is primarily intended for Sunil Sales and Services Private Limited and Shark Suppliers Private Limited. In a separate development, the company's Board of Directors proposed increasing the authorized share capital from Rs. 150 crore to Rs. 200 crore, subject to shareholder approval. This would allow for the issuance of an additional 50 crore equity shares.

Shareholders will also vote on a special interim dividend of Rs 0.01 per share for the financial year 2023-24. The date to determine shareholder eligibility for the dividend has been changed from May 10, 2024, to May 13, 2024.

Established in 1987, Standard Capital Markets Ltd is a NBFC company registered with the RBI. They offer a variety of financial services including advisory (negotiations, project identification etc.), arbitration & mediation, due diligence, commercial contract services (drafting agreements etc.), litigation assistance, and even licensing (company incorporation, import/export licenses etc.). With a strong track record and recent 100 per cent CAGR profit growth over the last 5 years, they've established a wholly-owned subsidiary, Standard Capital Advisors Limited, to expand their reach into merchant banking activities.

Also Read: Role of artificial intelligence (AI) in stock market analysis

The company's financial performance has been on a steep upward trajectory. In Q3FY24, net sales shot up by 94.4 per cent to Rs 5.78 crore, operating profit rose 243.7 per cent and net profit skyrocketed 647.8 per cent to Rs 3.32 crore compared to Q3FY23. This strong performance continued throughout the first nine months of FY24 (9MFY24) with net sales increasing by 272.2 per cent to Rs 16.70 crore and net profit soaring 1,203 per cent to Rs 8.20 crore compared to 9MFY23.

Looking at the half-yearly results (H1FY24), net sales surged an impressive 426 per cent to Rs 10.92 crore, and net profit witnessed a phenomenal leap of 2,560 per cent to Rs 4.90 crore year-over-year. This positive trend extended to the full fiscal year FY23, where net sales jumped a significant 2,093 per cent to Rs 8.05 crore and net profit witnessed a remarkable 2,584 per cent growth to Rs 2.23 crore compared to FY22.

The company's shares undergo a 2:1 bonus share and stock split from Rs 10 to Rs 1 on the ex-date i.e., December 29, 2023. According to the shareholding pattern, promoters of the company only own a 17.74 per cent stake while an 82.26 per cent stake is owned by the public. From Rs 0.04 to Rs 1.93 per cent, the stock gave multibagger returns of 4,725 per cent in 3 years.

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