Heavy buying in this penny stock at Rs 2.58: Hit upper circuit on July 01, 2024

The stock is up by 36 per cent from its 52-week low of Rs 1.90 per share.

Today, shares of Advik Capital Ltd were locked in a 5 per cent to Rs 2.58 per share from its previous closing of Rs 2.46. The shares of the company saw a spurt in volume by more than 1.10 times. The stock’s 52-week high is Rs 4.35 and its 52-week low is Rs 1.90.

Advik Capital, a Non-Banking Financial Company (NBFC) with a total assets of Rs 200 crore, is aiming to achieve the status of a Systematically Important Non-Banking Financial Company (SIB-NBFC) by 2025. To achieve this, the company is executing a comprehensive expansion strategy that includes enlarging its business offerings, exploring new-age sectors like healthcare, and strategically evaluating existing lines to improve overall performance. The company is also infusing additional resources to strengthen its operations and attract industry veterans with expertise in risk, operations, governance and technology.

Advik Capital is making strategic moves to solidify its position in the evolving financial landscape. Obtaining SIB-NBFC status, with its Rs 500 crore minimum asset requirement, will not only strengthen its market position but also allow it to offer more complex financial products. This, combined with their recent launch of a Rs 250 crore Alternative Investment Fund (AIF) focused on new-age sectors and their ARC acquisition, positions them to capitalize on India's growing AIF and ARC markets. Furthermore, recognition as a Systemically Important NBFC by the Reserve Bank of India would solidify its role as a key player in maintaining financial stability and grant it access to participate in specialized market segments.

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Additionally, the company entered into the share purchase agreement (SPA) along with Mr Vikas Garg and Vikas Lifecare Limited (Acquirers) for the acquisition of control and 14,07,067 equity shares representing 6.24 per cent of the issued and paid-up share capital of Industrial Investment Trust Limited (‘Target Company’ or ‘IITL’). Under the SPA, the Acquirers along with the Person Acting in Concert (PAC) have made an open offer to the shareholders of the target company.

The company has a market cap of Rs 110.46 crore and has delivered good profit growth of 70 per cent CAGR over the last 3 years. The company reported positive numbers in its Quarterly Results (Q3FY24) and annual results (FY23). According to the shareholding pattern, the promoters of the company own 21.80 per cent and the public owns a 78.20 per cent stake in the company as of March 2024. The stock is up by 36 per cent from its 52-week low of Rs 1.90 per share. Investors should keep an eye on this micro-cap stock.

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