Penny Stock Under Re 1 Hit Upper Circuit: NBFC Company Incorporation of Wholly Owned Subsidiary in Dubai DIFC to Explore Middle East and African Markets
The stock gave multibagger returns of 550 per cent in 3 years and 1,200 per cent in 5 years.
Today, shares of Standard Capital Markets Ltd hit a 5 per cent upper circuit to Rs 0.53 per share from its previous closing of Rs 51 per share. The stock’s 52-week high is Rs 2.07 per share and its 52-week low is Rs 0.49 per share.
Standard Capital Markets Limited (SCML), a prominent Indian financial services provider, has revealed its plan to establish a wholly-owned subsidiary within the Dubai International Financial Centre (DIFC). This strategic initiative is designed to bolster SCML's presence in the Middle East and African markets, with a primary emphasis on expanding its trade finance, invoice discounting, and project finance services.
This expansion into Dubai is a key component of SCML's strategy to diversify its service portfolio and broaden its operational footprint beyond India. By venturing into the Middle East and African regions, the company intends to capitalize on the increasing demand for trade finance solutions, which are crucial for businesses aiming to improve cash flow, optimize working capital, and manage risks associated with international trade.
The establishment of this subsidiary, contingent upon approval from the Reserve Bank of India (RBI), will ensure adherence to the legal and regulatory standards set by both the DIFC and the Indian government. SCML anticipates that this foray into these high-growth regions will enable it to deliver more comprehensive and innovative financial solutions to clients engaged in cross-border trade, including trade finance, invoice discounting, and tailored financial products for importers and exporters.
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About the Company
Standard Capital Markets Ltd, an NBFC established in 1987 and registered with the RBI, offers a comprehensive suite of financial services beyond traditional banking. These include advisory services, arbitration, due diligence, legal assistance, and licensing support. To further expand its reach, the company established a wholly owned subsidiary, Standard Capital Advisors Limited, specializing in merchant banking activities. With a strong commitment to customer satisfaction and a focus on integrity and innovation, Standard Capital Markets Ltd. aims to provide valuable financial solutions to individuals and businesses while actively contributing to the growth of the education sector by ensuring accessibility to financial opportunities.
According to Quarterly Results, the net sales increased by 106 per cent to Rs 20.28 crore in Q3FY25 compared to net sales of Rs 9.84 crore in Q2FY25. The company reported a net loss of Rs 45.10 crore in Q3FY25 compared to a net loss of Rs 0.70 crore in Q2FY25. The company reported net sales of Rs 38.16 crore and a net loss of Rs 44.05 crore in 9MFY25 while the company reported net sales of Rs 27.39 crore and a net loss of Rs 10.71 crore in FY24.
The company has a market cap of Rs 92 crore and has delivered good profit growth of 173 per cent CAGR over the last 5 years. According to the shareholding pattern, promoters of the company only own a 13.89 per cent stake while the public owns an 86.11 per cent stake as of December 2024. The stock gave multibagger returns of 550 per cent in 3 years and 1,200 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.