2:1 bonus share; 10:1 stock split in FY24: Multibagger penny stock at Rs 1.54 in green as the company expands its footprint in the insurance broking sector!

From Rs 0.04 to Rs 1.54 per share, the stock gave multibagger returns of 3,750 per cent in 3 years.

Today, the shares of Standard Capital Markets Ltd gained 1.32 per cent to Rs 1.54 per share from its previous closing of Rs 1.52 per share. The stock’s 52-week high is Rs 3.52 and its 52-week low is Rs 1.15.

Standard Capital Markets Limited (the Company) incorporated a new wholly-owned subsidiary named Standard Insurance Broking Limited (New Company) on June 19, 2024. The new subsidiary is registered under the Companies Act, 2013.

New Co has an authorized capital of Rs 1,00,00,000 divided into 10,00,000 equity shares of Rs 10 each. Standard Capital Markets Limited will hold 100 per cent of the shares, meaning they are acquiring 10,00,000 shares. The entire share capital of Rs 1,00,00,000 will be paid in cash.

New Co is incorporated to act as a direct broker under the Insurance Regulatory and Development Authority of India (IRDAI) following the Insurance Brokers Regulations, 2018. Standard Capital Markets Limited already received a No Objection Certificate (NOC) from IRDAI and will apply for the Insurance Broking License next. This move allows Standard Capital Markets Limited to expand its footprint in the insurance broking sector and enhance its market position.

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About Standard Capital Markets Ltd

Established in 1987, Standard Capital Markets Ltd is an 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.  

The company's financial performance has been on a steep upward trajectory. In FY24, net sales shot up by 143 per cent to Rs 27.40 crore and net profit skyrocketed 380 per cent to Rs 10.71 crore compared to FY23. Looking at the annual results (Q4FY24), net sales jumped a significant 200 per cent to Rs 10.7 crore and net profit witnessed a remarkable 58 per cent growth to Rs 2.52 crore compared to Q4FY23.

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 15.07 per cent stake while an 84.92 per cent stake is owned by the public as of June 2024. From Rs 0.04 to Rs 1.54 per share, the stock gave multibagger returns of 3,750 per cent in 3 years.

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