Double Dhamaka! Board Announces 5:1 Stock Split & 220 Per Cent Dividend: Low PE Multibagger Stock From NBFC Industry To Keep Under Radar

The stock is up by 85 per cent from its 52-week low of Rs 1,760.90 per share and gave multibagger returns of 160 per cent in 2 years.

On Friday, shares of Shriram Finance Limited surged 3.64 per cent to an intraday high of Rs 3,373.35 per share from its previous closing of Rs 3,254.95. At the closing bell, shares of the company were trading at Rs 3,344.90 per share, up 2.76 per cent with a spurt in volume by more than 2.35 times on BSE.

Shriram Finance Ltd. has announced an interim dividend of 220 per cent, amounting to Rs 22 per equity share for the financial year 2024-25. This dividend will be paid to shareholders whose names appear on the company's register of members as of November 7, 2024, and the payout is scheduled for November 24, 2024. Additionally, the company has proposed a sub-division of its equity shares from a face value of Rs 10 to Rs 2, subject to shareholder approval through a postal ballot. The record date for this sub-division will be determined after obtaining shareholder consent and will be communicated subsequently.

Shriram Finance Ltd is a part of the SHRIRAM Group conglomerate which has a significant presence in the financing business. STFC is engaged in the business of commercial vehicle financing mainly focusing on trucks from preowned to new ones. It's a Deposit-taking NBFC comprising 1,758 branches, 831 rural centres and partnerships with 500 private financiers. In Q2FY25 results, the company reported a total revenue of Rs 10,096.7 crore and a net profit of Rs 2,027.3 crore while in its H1FY25 results, the company reported a total revenue of Rs 19,693.8 crore and a net profit of Rs 4,051.9 crore

The company has a market cap of over Rs 1.17 lakh crore with a PE ratio of 17x whereas the industry PE ratio is 25x. The stock is up by 85 per cent from its 52-week low of Rs 1,760.90 per share and gave multibagger returns of 160 per cent in 2 years. Investors should keep an eye on this mid-cap stock.

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