Only Buyers In This Penny Stock Under Rs 25; Scrip Locked In Upper Circuit On September 13
The stock is up by 83.12 per cent from its 52-week low of Rs 11.91 per share.
Today, shares of LKP Securities Ltd hit a 5 per cent upper circuit to Rs 21.81 per share from its previous closing of Rs 21.81. The stock’s 52-week high is Rs 28.50 and its 52-week low is Rs 11.91.
LKP Securities Ltd, established in 1948, is a financial services company offering stock and securities broking along with other financial products. They provide research-based equity advisory and trading services like equities, debt, structured products, portfolio management services, and third-party distribution to a wide range of clients including individuals, corporations, and retail investors. The company boasts a broad reach across India with a presence in over 150 cities.
Standalone Results: The company's financial performance for Q1FY25 showed a significant improvement compared to Q1FY24. Net sales jumped by 68 per cent to Rs 30.47 crore from Rs 18.17 crore, and net profit surged by 189 per cent to Rs 4.10 crore, compared to a net profit of Rs 1.42 crore in the previous year's corresponding quarter. Looking at the annual results, the company continued its positive trajectory with a 25 per cent increase in net sales to Rs 96.18 crore and a 200.6 per cent growth in net profit to Rs 9.50 crore in FY24 compared to FY23.
Consolidated Results: The company's financial performance in Q1FY25 showed significant improvement year-over-year with net sales jumping 66 per cent to Rs 30.71 crore from Rs 18.45 crore and net profit increased by 158 per cent to Rs 4.11 crore in Q1FY25 to a net profit of Rs 1.59 crore in Q1FY24. Looking at the annual results, the company's net sales for FY24 rose by 24.4 per cent to Rs 97.35 crore, and net profit grew by 154.7 per cent to Rs 9.50 crore compared to FY23.
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The Company has invested an additional Rs 50 Lakhs in its wholly-owned subsidiary, LKP IFSC Private Limited, by subscribing to its rights issue. LKP IFSC is a newly incorporated entity that will engage in broking and alternative investment fund businesses at the GIFT City, commencing operations in FY24-25. This related party transaction, conducted at arm's length, does not alter the Company's 100 per cent ownership in LKP IFSC. The cash investment of Rs. 50 Lakhs for 5,00,000 equity shares at par is expected to be completed by August 14, 2024, without requiring any governmental or regulatory approvals.
The company has a market cap of Rs 172.7 crore and has delivered good profit growth of 35.6 per cent CAGR over the last 5 years. The shares of the company have a PE of 15x, an ROE of 13 per cent and an ROCE of 20 per cent. The stock is up by 83.12 per cent from its 52-week low of Rs 11.91 per share. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.