Rs 200,00,00,000 total assets multibagger penny stock below Rs 5; this micro-cap company achieved another milestone towards becoming a systematically important NBFC!

The shares of the company have a PE of 10.8x whereas the industry PE is 24.7x and an ROE of 27 per cent with multibagger returns of 425 per cent in just 3 years.

With an eye on long-term growth and diversifying its portfolio, Advik Capital Limited is on a strategic path to become a Systematically Important NBFC (SIB-NBFC) by 2025. Currently boasting a net worth of Rs 100 crore and total assets of Rs 200 crore, Advik Capital is nearing this coveted status by actively implementing a multi-pronged expansion plan. This plan involves broadening its business offerings, venturing into new-age sectors, and strategically evaluating existing lines to optimize performance.

To fuel this ambitious growth, Advik Capital is attracting industry veterans as domain experts in risk, operations, governance, and technology, while also pooling additional resources to bolster its operations. Achieving SIB-NBFC status, with its minimum asset size requirement of Rs 500 crore, will not only solidify Advik Capital's position in the financial market but also allow it to offer more structured products to its customers.

This recognition by the Reserve Bank of India signifies Advik Capital's critical role in maintaining the overall financial stability of the economy, granting it access to participate in niche market segments. In essence, Advik Capital is making calculated moves to not only expand its reach and offerings but also become a vital player in the Indian financial landscape.

Earlier, Advik Capital, an NBFC, launched a Rs 250 crore AIF to invest in sunrise sectors like healthcare and turnaround-stressed assets. This expansion into new-age finance, alongside its recent ARC acquisition, positions Advik Capital to capitalize on India's growing AIF and ARC markets, strengthening its position in the evolving financial landscape.

The company has a market cap of Rs 98.48 crore and has delivered good profit growth of 74 per cent CAGR over the last 3 years. The company reported positive numbers in its Quarterly Results (Q2FY24) and annual results (FY23).

On Wednesday, shares of Advik Capital Ltd plunged 4.56 per cent to Rs 2.30 per share with an intraday high of Rs 2.51 and an intraday low of Rs 2.29. The stock’s 52-week high is Rs 5.01 and its 52-week low is Rs 1.90. The shares of the company have a PE of 10.8x whereas the industry PE is 24.7x and an ROE of 27 per cent with multibagger returns of 425 per cent in just 3 years. Investors should keep an eye on this micro-cap stock.

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