2:1 stock split & Company incorporates a new subsidiary for business expansion: Multibagger penny stock under Rs 3 to keep under the radar!
From Re 0.98 per share (52-week low) to Rs 2.09 per share, the stock gave multibagger returns of over 100 per cent.
Srestha Finvest Limited proposes a stock split, subject to shareholder and regulatory approval, where each existing Rs 2 face value share will be divided into two Re 1 face value shares. This is intended to enhance market liquidity, broaden the shareholder base, and make shares more accessible to small investors. The company anticipates completing this process within approximately two months.
The company also subscribed to 75 per cent of the equity shares of its newly incorporated subsidiary, Srestha Greentech Private Limited (SGPL), for a total consideration of Rs. 37,50,000. SGPL, a domestic company incorporated on July 30, 2024, will engage in real estate, civil engineering, project management, and green technology projects, including EPC contracts, waste management, and infrastructure development. The acquisition constitutes a related party transaction as the Company is the promoter of SGPL. No governmental approvals or specific timeline are required for this acquisition. While SGPL's business may be considered outside the Company's main line of business, the acquisition is aimed at diversifying into the growing green technology sector and leveraging potential synergies.
On July 23, 2024, the company raised Rs 48 crore through a rights issue of 24 crore shares. This capital will be used to invest Rs 5 crore in Felix Industries Ltd., a strategic partner, to establish a new plant focused on renewable energy and water treatment technologies. This collaboration aligns with the company's commitment to sustainable finance and environmental responsibility, as it supports Felix in fulfilling a significant order from Aarti Industries Ltd.
On Thursday, shares of Srestha Finvest Ltd plunged 5 per cent to Rs 2.09 per share from its previous closing of Rs 2.20. The stock’s 52-week high is Rs 2.56 while its 52-week low is Re 0.98.
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About the Company
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.
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 Rs 171 crore and its 100 per cent stake is owned by the public. From Re 0.98 per share (52-week low) to Rs 2.09 per share, the stock gave multibagger returns of over 100 per cent. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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