120 per cent multibagger returns from its 52-week low: Heavy buying in this penny stock at Rs 2.18 per share; hit upper circuit & 52-week high on June 24

The stock gave multibagger returns of over 120 per cent returns from its 52-week low of Re 0.98 per share.

Today, shares of Srestha Finvest Ltd jumped 5 per cent to Rs 2.18 per share from its previous closing of Rs 2.08. The stock also made a 52-week high is Rs 2.18 while its 52-week low is Re 0.98.

Srestha Finvest Ltd is raising Rs 48 crore through a rights issue by issuing 24 crore new equity shares with a face value of Rs 2 each in the ratio 12:29 rights issue. Existing shareholders on the revised record date i.e., Monday, June 24, 2024, instead of Friday, June 21, 2024, will be eligible to participate in the rights issue with an entitlement ratio of 12 rights shares for every 29 equity shares held. This means they can buy 12 new shares at Rs. 2 per share (issue price) for every 29 shares they own. The rights issue will open for subscription on July 4, 2024, and close on July 18, 2024. Shareholders can renounce their rights entitlements till July 12, 2024. If fully subscribed, the company's outstanding equity shares will increase from 58 crore to 82 crore.

Earlier, the company partnered with Felix Industries Limited, to drive renewable energy and sustainability efforts in India. This June 13, 2024, Facility Agreement allows Srestha Finvest to enter the loan market for clean water access, water recycling, and renewable energy projects. By combining expertise and resources, both companies aim for significant environmental impact. Srestha Finvest will commit Rs 25 crore over one to two years to fund Felix Industries' renewable energy and clean water projects, while also strategically expanding into new technology sectors. The agreement targets clean water, waste-to-energy solutions, recycling initiatives, green infrastructure development, e-waste management, and waste-to-oil projects. Importantly, this collaboration is an arms-length transaction, meaning fair market value is used and there are no familial or business ties between the companies' promoters.

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.

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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 over Rs 170 crore and its 100 per cent stake is owned by the public. The stock gave multibagger returns of over 120 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.