This multibagger NBFC stock hits back-to-back 52-week high: Is it in your portfolio?

The stock generated multibagger returns of 165 per cent in 3 years.  

On July 05, 2023, the shares of Shriram Finance Company Limited surged 1.42 per cent, the stock hits fresh 52-week high of Rs 1827 per share on BSE.

Meanwhile, the Sensex concluded the day with a marginal decrease of 0.05 per cent below the 65,500 level, while the Nifty closed marginally higher by 0.05per cent above the 19,300 level.   

Shriram Transport Finance Company Ltd is a subsidiary of the SHRIRAM Group, a major player in the finance industry. STFC is in the commercial vehicle lending market, focusing primarily on trucks ranging from used to new. It is a deposit-taking non-banking financial institution with 1,758 branches, 831 rural centres and partnerships with 500 private financiers.  

The financial performance of the company is as follows:         

• According to the quarterly statistics, the net sales grew by 56.74 per cent to Rs 7,966 crore in Q4FY23 over Q4FY22. In Q4FY23, the company earned Rs 1,288 crore in net profit. The EPS during Q4FY23 was Rs 34.32.      

• According to the yearly reports, the company's net sales reported at Rs 30,492 crore, a 58.35 per cent increase over the previous year. The company produced a profit after tax (PAT) of Rs 6,020 crore, increase of 121.24 per cent, as compared to FY22.  

The stock is up by 41 per cent in just 1 year and generated multibagger returns of 165 per cent in 3 years. Investors should keep an eye on this multibagger Non-Banking Financial Company (NBFC) stock.