High ROE & high ROCE penny stock below Rs 3 in green as Board approve Rs 100,00,00,000 fundraising for growth opportunities!

The shares of the company have an ROE of 27 per cent & an ROCE of 21 per cent with multibagger returns of over 120 per cent in just 3 years.

Advik Capital Ltd held a board meeting on Saturday, March 23, 2024, at their registered office in Delhi. The board approved plans to raise funds for future growth initiatives, both within their current operations and in adjacent markets. This fundraising, subject to necessary approvals, could reach up to Rs 100 crore and would involve issuing a combination of equity shares, convertible securities, warrants, and bonds. The issuance could happen through various methods like private placements, rights issues, or foreign offerings, potentially in multiple tranches.

Today, shares of Advik Capital Ltd surged 1.15 per cent to Rs 2.65 per share from its previous closing of Rs 2.62 with an intraday high of Rs 2.70 and an intraday low of Rs 2.52. 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.

Achieving the SIB-NBFC status, which requires a minimum asset size of Rs 500 crore, will not only fortify Advik Capital's position in the financial market but will also enable the provision of more sophisticated products to its customers. Recognition as a Systematically Important NBFC by the Reserve Bank of India will underscore Advik Capital's crucial role in maintaining overall financial stability and grant it access to participate in specialized market segments. Advik Capital's recent launch of a Rs 250 crore Alternative Investment Fund (AIF) to invest in new-age sectors and its ARC acquisition further positions the company to capitalize on India's growing AIF and ARC markets, solidifying its position in the evolving financial landscape.

The company has a market cap of Rs 113 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, promoters of the company own 21.80 per cent, FIIs own 0.39 per cent and the public owns a 77.81 per cent stake in the company as of December 2023.

The shares of the company have an ROE of 27 per cent & an ROCE of 21 per cent with multibagger returns of over 120 per cent in just 3 years.

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