6,200 per cent returns: Multibagger NBFC stock in green after the company allotted 8,75,000 warrants into an equal number of equity shares
From Rs 3.82 per share to Rs 241.65 per share, the stock gave multibagger returns of 6,200 per cent in 3 years.
The stock market was trading in red with the BSE Sensex Index and NSE Nifty-50 Index plunging 0.05 per cent and 0.15 per cent respectively. On the broader market, the BSE Mid-Cap Index plunged 0.22 and the BSE Small-Cap Index gained 0.02 per cent.
Though the market was in red, shares of Mufin Green Finance Ltd gained 2.87 per cent to an intraday high of Rs 241.65 per share from its previous closing of Rs 234.90. The stock’s 52-week high of Rs 273.10 while its 52-week low is Rs 34.19 per share. The stock gave multibagger returns of 475 per cent in just 1 year whereas BSE Small-Cap Index is up by 64 per cent.
Mufin Green Finance Limited operates as an investment firm. The company offers investment advisory, asset management, capital preservation, and financial planning services. The company has a market capitalization of Rs 3,600 crore and has delivered good profit growth of 140 per cent CAGR over the last 5 years.
In a meeting on February 19, 2024, Mufin Green Finance approved the conversion of 875,000 warrants into equity shares at a price of Rs. 41.25 per warrant, raising Rs. 3.61 crore. This increases the company's issued capital to Rs. 15.87 crore and brings the total number of outstanding shares to 15.95 crore. The newly issued shares have the same rights as existing shares.
The company on December 27, 2023 w.r.t. allotment of 2,55,00,000 convertible warrants, each convertible into equity shares of the face value of Rs 1 each, at an issue price of Rs 55 each, after receipt of subscription amount is 25 per cent of the issue price from the allottees on preferential basis
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The company announced stellar Quarterly Results (Q3FY24) which caused the sudden rise in the stock price. The net sales increased by 155 per cent to Rs 27.18 crore, the operating profit (EBITDA) increased by 334 per cent to Rs 19.66 crore and the net profit increased by 98.7 per cent to Rs 4.55 crore in Q3FY24 compared to Q3FY23. The company reported net sales of Rs 65.74 crore and net profit of Rs 12 crore in 9MFY24.
Earlier, Mufin Green Finance is set to acquire a 45.32 per cent stake and full control of LKP Finance from its promoters and associated entities, including individuals like Mr Mahendra Doshi and companies like Bhavana Holdings. This move involves purchasing 56,96,312 shares and launching an open offer, subject to regulatory approvals.
From Rs 3.82 per share to Rs 241.65 per share, the stock gave multibagger returns of 6,200 per cent in 3 years. In the past three years, the company has implemented three corporate actions: a final dividend of Rs 0.2 per share on September 2nd, 2022, a 2:1 stock split on April 13, 2023, and a 2:1 bonus share issuance on July 02, 2023. These actions have increased the number of outstanding shares and potentially impacted the company's stock price and financial ratios.
Disclaimer: The article is for informational purposes only and not investment advice.
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