From Rs 3.16 to Rs 224.35 per share in just 1,615 days: Keep an eye on this multibagger small-cap stock that was locked in upper circuit on February 27
The stock gave multibagger returns of 478 per cent in just 1 year whereas BSE Small-Cap Index is up by 69 per cent in the same period.
The stock market saw marginal movements today, with the BSE Sensex Index edging up by 0.04 per cent and the NSE Nifty-50 Index showing a slight increase of 0.05 per cent. In the broader market, the BSE Mid-Cap Index rose by 0.35 per cent, while the BSE Small-Cap Index recorded a gain of 0.26 per cent.
Mufin Green Finance Ltd.’s shares surged alongside the broader market's positive trend. They were locked in an upper circuit, meaning they could only be traded at a maximum price, reaching Rs 224.35 per share. This is a 5 per cent increase from the previous closing price of Rs 213.70.
It's worth noting that the stock's price has fluctuated significantly within the past year, reaching a high of Rs 273.10 and a low of Rs 34.19. Notably, Mufin Green Finance Ltd has delivered impressive multibagger returns of 478 per cent in just one year, significantly outperforming the broader market as evidenced by the BSE Small-Cap Index's 69 per cent gain during the same period.
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 3,387.58 crore and has delivered good profit growth of 141 per cent CAGR over the last 5 years.
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.
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This month, the Mufin Green Finance Board agreed to change 8,75,000 warrants into equity shares, each priced at Rs 41.25, collecting Rs 3.61 crore. This boosts the company's issued capital to Rs 15.87 crore and the total outstanding shares to 15.95 crore. These new shares have the same rights as the existing ones. On December 27, 2023, the company decided to issue 25,500,000 convertible warrants at Rs 55 each, with each warrant convertible into equity shares worth Rs 1, after getting 25 per cent of the issue price from the allottees.
Earlier, Mufin Green Finance planned to buy a 45.32 per cent stake and complete control of LKP Finance from its current owners, including Mr Mahendra Doshi and Bhavana Holdings, involving buying 56,96,312 shares and launching an open offer pending regulatory approvals.
From Rs 3.16 per share to Rs 224.35 per share, the stock gave multibagger returns of 7,000 per cent in just 1,615 days. In the past three years, the company has implemented three corporate actions: a final dividend of Rs 0.2 per share on September 2, 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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