Multibagger Update: Net profit of this small-cap housing finance stock skyrocketed by 545 per cent in Q3FY23!

The stock has witnessed heavy buying as it has given multibagger returns of more than 135 per cent in just 1 year.

Star Housing Finance is a housing finance company which provides home loans to low- and mid-income group households. It is registered as a Primary Lending Institution (PLI) under the Pradhan Mantri Awas Yojana (PMAY). Currently, the business is spread across Rajasthan, Gujarat, Madhya Pradesh, Maharashtra and Tamil Nadu.  

On January 23, 2023, the company declared robust business performance posting strong results for nine months, ending December 31, 2022. Total income comprising of interest income and other income has registered 80 per cent YoY growth. The company’s net profitability skyrocketed more than 545 per cent on YoY basis to Rs 5.82 crore and is now well poised to generate meaningful ROA and ROE for shareholders.   

Star Housing Finance has disbursed Rs 100 crore plus disbursement for the first time in a financial year and is now a Rs 100 crore net worth company. With 1:1 bonus and 1:2 split effected; the existing shareholders have been rewarded by this corporate action with an objective to create long-term & sustainable value for stakeholders.   

On January 25, 2023, the stock surged more than 3.5 per cent to make an intraday high of Rs 52.75. The scrip witnessed some profit booking and closed 0.79 per cent up at Rs 51.35. The stock has witnessed heavy buying as it has given multibagger returns of more than 135 per cent in just 1 year.   

Keep a close eye on this trending multibagger stock.