Penny stock at Rs 1.87 hits 52-week high: Company signs an MoU worth Rs 25,00,00,000 with Felix Industries for renewable energy; details inside!

The stock is up by 87 per cent returns from its 52-week low of Re 1 per share.

Srestha Finvest Limited, a company focused on financial services, has joined forces with Felix Industries Limited, a company likely involved in manufacturing, to propel renewable energy and sustainability initiatives in India. This partnership solidified through a Facility Agreement signed on June 13, 2024, paves the way for Srestha Finvest to venture into providing loans for projects that promote clean water access, water recycling, and renewable energy sources. By combining their areas of expertise and resources, both companies aim to make a significant contribution to environmental sustainability.

The agreement outlines a commitment of Rs 25 crore from Srestha Finvest over the next one to two years. These funds will be directed towards financing renewable energy and clean water projects undertaken by Felix Industries. This collaboration also presents an opportunity for Srestha Finvest to expand its presence in sectors that leverage new technologies.

Here's a closer look at the key points of this agreement:

• Parties Involved: Srestha Finvest Limited and Felix Industries Limited
• Objective: This agreement aims to support projects that utilize renewable energy sources, promote clean water access, and implement water recycling methods. Additionally, Srestha Finvest will leverage this partnership to broaden its reach into new technology sectors.
• Financial Backing: Srestha Finvest has pledged to provide funding of up to Rs. 25 crore over a one-to-two-year period.
• Target Areas: The agreement focuses on projects that deal with clean water, waste-to-energy solutions, recycling initiatives, green infrastructure development, e-waste management, and projects that convert waste into oil.
• Company Relations: There are no familial or business connections between the promoters of Srestha Finvest and Felix Industries.
• Transaction Classification: This agreement is not considered a related party transaction and is deemed to be conducted at arm's length, signifying fair and market-based terms.

Today, shares of Srestha Finvest Ltd jumped 7.47 per cent to Rs 1.87 per share from its previous closing of Rs 1.74. The stock also made a fresh new 52-week high of Rs 1.87 while its 52-week low is Rs 1.

Established in 1985, Srestha Finvest Ltd. is a multifaceted financial services company that offers a range of solutions, including loans, financing, and investments. They hold a specific regulatory license: a Category B Non-Systematically Important Non-Deposit Taking NBFC - Investment and Credit Company. This allows them to provide loans secured by various assets (securities, movable and immovable properties), offer hire purchase and leasing options, and engage in trading and investing in shares.

Quarterly Results

The total increased by 710 per cent to Rs 564.16 lakh in Q4FY24 compared to the total income of Rs 69.68 lakh in Q4FY23. The company reported a net profit of Rs 506.35 in Q4FY24 compared to a net loss of Rs 461.37 crore in Q4FY23, an increase of 210 per cent.

Annual Results

The total increased by 269 per cent to Rs 1,013.01 lakh in FY24 compared to the total income of Rs 274.56 lakh in FY23. The company reported a net profit of Rs 173.86 in FY24 compared to a net loss of Rs 497.41 crore in FY23, an increase of 135 per cent. The company reported a net profit in FY24 after reporting a net loss for the past 5 years i.e., FY23, FY22, FY21, FY20 and FY19.

The company has a market cap of over Rs 100 crore and its 100 per cent stake is owned by the public. The stock is up by 87 per cent returns from its 52-week low of Rs 1 per share. Investors should keep an eye on this micro-cap stock.

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