Multibagger penny stock under Rs 5 with 7,750 per cent returns: Board announces fund raising through NCDs for business growth and expansion plans!

The stock gave multibagger returns of 3,825 per cent in 2 years, 6,180 per cent in 3 years and a whopping 7,750 per cent in 5 years.

Established in 1987, Standard Capital Markets Ltd operates as a non-deposit, non-systemically important NBFC licensed by the Reserve Bank of India. Classified as an NBFC-Investment and Credit Company (NBFC-ICC), the company holds a market capitalisation of Rs 461.58 crore. It has achieved remarkable profit growth of 100 per cent CAGR over the last five years.

Standard Capital Markets Ltd informed that the Board of Directors of the company, as part of our comprehensive strategic financial planning, the company considered and discussed the purpose of raising funds through Non-Convertible Debentures (NCDs). In alignment with the company’s long-term financial goals and to optimize its capital structure, it actively engaged with various institutions to explore and facilitate this fundraising avenue.

The Board of Directors, in compliance with the provisions of section 180(1)(c) of the Companies Act, 2013, has duly approved the decision to raise funds through NCDs. The funds raised through NCDs will be earmarked for business expansion and general corporate purposes, reinforcing our growth and expansion plans. This strategic move not only fortifies the company’s financial position but is anticipated to significantly contribute to shareholder value.

After rising nearly 140 per cent over the period of 12 months, shares of Standard Capital Markets Ltd are undergoing a correction and have hit the lower circuit for the third straight day. Today, shares of Standard Capital Markets Ltd plunged 2 per cent to Rs 3.14 per share from its previous closing of Rs 3.20. The 52-week high of the stock is Rs 3.32 and the 52-week low of Rs 0.84.

Results

Quarterly Results: The net sales increased by 94.4 per cent to Rs 5.78 crore, operating profit increased by 243.7 per cent and net profit increased by 647.8 per cent to Rs 3.32 crore in Q3FY24 compared to Q3FY23.

Nine-Month Results: The net sales increased by 272.2 per cent to Rs 16.70 crore and net profit increased by 1,203 per cent to Rs 8.20 crore in nine months of results ended December 31, 2023 compared to nine months of results ended December 31, 2022.  

In its half-yearly results (H1FY24), the net sales surged 426 per cent to Rs 10.92 crore and net profit leapt 2,560 per cent to Rs 4.90 crore, year-over-year. The impressive trend extended to FY23, where net sales jumped 2,093 per cent to Rs 8.05 crore and net profit galloped 2,584 per cent to Rs 2.23 crore, compared to FY22.

On December 29, 2023, the company delighted its shareholders with a dual benefit: a distribution of two bonus shares for every existing share, accompanied by a ten-for-one stock split, effectively augmenting their holdings fifteenfold. Despite the substantial increase in the number of shares for each investor on the ex-bonus and ex-split dates, the overall value of their investments remained unaltered.

This strategic decision, communicated by the Board of Directors on January 2, 2024, entailed the allocation of 98,00,02,000 bonus shares in a 2:1 ratio, resulting in a post-bonus issued paid-up share capital of Rs 1470 crore. The stock gave multibagger returns of 3,825 per cent in 2 years, 6,180 per cent in 3 years and a whopping 7,750 per cent in 5 years.

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