Multibagger penny stock at Rs 2.38 hit the upper circuit today as the Board approved the allotment of 24,00,00,000 Rights Equity Shares
The stock gave multibagger returns of over 140 per cent returns from its 52-week low of Re 0.98 per share.
Today, shares of Srestha Finvest Ltd gained 5 per cent upper circuit to Rs 2.38 per share from its previous closing of Rs 2.25. The stock’s 52-week high is Rs 2.38 while its 52-week low is Re 0.98. The shares of the company saw a spurt in volume by more than 2 times on BSE.
The company's board of directors, after consulting with the registrar overseeing the issuance and by the allotment guidelines determined by the stock exchange, approved the allotment of 2,40,000,000 (twenty-four crore) rights equity shares on July 23, 2024. These shares each have a face value of Rs 2 and were issued for Rs 2 per share. This issuance will increase the company's paid-up equity share capital to Rs 48,00,00,000 (forty-eight crore).
Earlier, Srestha Finvest and Felix Industries Ltd (Felix) solidified their existing partnership through a Facility Agreement aimed at advancing sustainable development. This agreement allocates up to Rs 50 million in funding from Srestha over two phases to support the construction of a new Felix plant focused on renewable energy, clean water, and water recycling technologies, fulfilling an order from Aarti Industries Ltd. This collaboration signifies Srestha's commitment to expanding its lending portfolio towards environmentally friendly projects and positions it as a leader in sustainable finance. The financial backing from Srestha will allow Felix to implement this new plant, expected to have a positive environmental impact, and exemplifies the growing importance of environmentally responsible business practices as both companies work towards a greener future.
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About the Company
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.
Quarterly Results
The total increased by 710 per cent to Rs 564.16 lakh in Q4FY24 compared to the total income of Rs 69.68 lakh in Q4FY23. The company reported a net profit of Rs 506.35 in Q4FY24 compared to a net loss of Rs 461.37 crore in Q4FY23, an increase of 210 per cent.
Annual Results
The total 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 in FY24 compared to a net loss of Rs 497.41 crore 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.
The company has a market cap of Rs 195 crore and its 100 per cent stake is owned by the public. The stock gave multibagger returns of over 140 per cent returns from its 52-week low of Re 0.98 per share. 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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