2:1 stock split: Multibagger stock at Rs 2.14 hits the upper circuit as company's market cap is Rs 175 crore and reported net profit of Rs 3,100.62 lakh, an increase of 6,963 per cent YoY
From Re 0.98 per share (52-week low) to Rs 2.14 per share, the stock gave multibagger returns of 118.4 per cent.
On Wednesday, shares of Srestha Finvest Ltd hit a 5 per cent upper circuit to Rs 2.14 per share from its previous closing of Rs 2.14. The stock’s 52-week high is Rs 2.56 while its 52-week low is Re 0.98.
Established in 1985, Srestha Finvest Ltd. is a multifaceted financial services company offering various 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 shares. The company has a market cap of Rs 175.48 crore.
Quarterly Results
The total revenue increased by 1,634 per cent to Rs 3,950 lakh in Q1FY25 compared to the total revenue of Rs 227.80 lakh in Q1FY24. The company reported a net profit of Rs 3,100.62 lakh in Q1FY25 compared to a net profit of Rs 43.90 lakh in Q1FY24, an increase of 6,963 per cent.
Annual Results
The total income 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 lakh in FY24 compared to a net loss of Rs 497.41 lakh 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.
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Additionally, Srestha Finvest Limited proposes a stock split, subject to shareholder and regulatory approval, where each existing Rs 2 face value share will be divided into two Re 1 face value shares. This is intended to enhance market liquidity, broaden the shareholder base, and make shares more accessible to small investors. The company anticipates completing this process within approximately two months.
Furthermore, Srestha Finvest Limited has announced that a meeting of its Board of Directors will be held on August 19, 2024, at the company's registered office. The primary agenda includes exploring options to raise funds for the company through various methods such as issuing equity shares, convertible instruments, or other securities via preferential allotment, right issues, QIPs, ADRs, GDRs, FCCBs, or any other suitable approach, potentially in multiple phases. The board will also authorize the appointment of necessary professionals, experts and intermediaries for the fundraising process, seek shareholder approval for these decisions, and address any other relevant matters at the chair's discretion.
From Re 0.98 per share (52-week low) to Rs 2.14 per share, the stock gave multibagger returns of 118.4 per cent. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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