Heavy Buying Witnessed: Authum Investment & Infrastructure-backed multibagger micro-cap stock hit upper circuit and 52-week high; do you own it?

The stock is up by 70 per cent in just 1 month and gave multibagger returns of 185 per cent in 6 months.

Indian markets made a record high as both Sensex and Nifty soared to unprecedented levels, breaching 71,000 and 21,300, respectively. Along with the market in green, this multibagger micro-cap stock hit a 5 per cent upper circuit to Rs 220.55 per share from its previous closing of Rs 210.55 per share. The stock also made a new 52-week high of Rs 220.55 per share. In the recent trading session, this stock has been hitting back-to-back upper circuits & 52-week highs.

The stock name is LKP Finance Limited.

Founded in 1948, LKP Securities Ltd. is a financial powerhouse with a nationwide presence in over 200 cities. They specialize in trading and investing across various financial instruments, including shares, securities, and derivatives. As a registered Non-Banking Financial Company, their domain extends beyond just brokerage services. LKP Securities actively participates in both capital and debt market activities, offering expert assistance in areas like merchant banking, institutional equity, wholesale and retail debt markets, pension fund advisory, research, retail equity, distribution, and even depository services for financial products like mutual funds and insurance.

Notably, their merchant banking arm focuses solely on debt placements. In essence, LKP Securities provides a comprehensive suite of financial solutions, catering to diverse needs within the investment landscape.

Financials of LKP Finance Ltd: The company has a market cap of Rs 277.20 crore. The shares of the company have a PE of 7.35x whereas the industry PE is 21x with an ROE of 12 per cent. The stock is trading at 0.83 times its book value. The company reported positive numbers in its Quarterly Results and annual results. The stock is up by 70 per cent in just 1 month and gave multibagger returns of 185 per cent in 6 months.

Authum Investment & Infrastructure Ltd, a mid-sized player in the Non-Banking Financial Company (NBFC) sector with a market cap of over Rs 13,000 crore, holds a significant 7 per cent stake in LKP Finance Limited. With a market capitalization exceeding Rs 13,000 crore, Authum Investment & Infrastructure Ltd is no small fry in the financial landscape. This investment suggests a vote of confidence in the company's future growth.

Do you own LKP Finance Limited’s stock in your portfolio? Do let us know in the comments below

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