Multibagger penny stock at Rs 1.65 with 4,000 per cent returns hit upper circuit as company to announce fundraising tomorrow!

From Rs 0.04 to Rs 1.64 per share, the stock gave multibagger returns of over 4,000 per cent in 3 years.

Today, the shares of Standard Capital Markets Ltd hit a 5 per cent upper circuit to Rs 1.65 per share from its previous closing of Rs 1.51 per share. The stock’s 52-week high is Rs 3.52 and its 52-week low is Rs 1.15.

The stock hit the upper circuit today because a Meeting of the Board of Directors of the Company will be held on Tuesday, July 02, 2024, interalia, to consider and approve the proposal for fundraising and any other business with the permission of the Chairman in compliance with applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended from time to time.

Additionally, Standard Capital Markets Limited (the Company) established a wholly-owned subsidiary, Standard Insurance Broking Limited (New Company), on June 19, 2024. Registered under the Companies Act, 2013, the New Company has an authorized capital of Rs 1 crore divided into 10 lakh equity shares of Rs 10 each. Standard Capital Markets Limited will fully acquire these shares, with the entire capital being paid in cash. This new venture aims to become a direct broker under the Insurance Regulatory and Development Authority of India (IRDAI) as per the Insurance Brokers Regulations, 2018. Having already secured a No Objection Certificate (NOC) from IRDAI, Standard Capital Markets Limited will pursue the Insurance Broking License next. This strategic move allows Standard Capital Markets Limited to broaden its presence in the insurance broking sector and solidify its market position.

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

About Standard Capital Markets Ltd

Established in 1987, Standard Capital Markets Ltd is a NBFC company registered with the RBI. They offer a variety of financial services including advisory (negotiations, project identification etc.), arbitration & mediation, due diligence, commercial contract services (drafting agreements etc.), litigation assistance, and even licensing (company incorporation, import/export licenses etc.). With a strong track record, the company established a wholly-owned subsidiary, Standard Capital Advisors Limited, to expand its reach into merchant banking activities.  

The company's financial performance has been on a steep upward trajectory. In FY24, net sales shot up by 143 per cent to Rs 27.40 crore and net profit skyrocketed 380 per cent to Rs 10.71 crore compared to FY23. Looking at the annual results (Q4FY24), net sales jumped a significant 200 per cent to Rs 10.7 crore and net profit witnessed a remarkable 58 per cent growth to Rs 2.52 crore compared to Q4FY23.

The company's shares undergo a 2:1 bonus share and stock split from Rs 10 to Rs 1 on the ex-date i.e., December 29, 2023. According to the shareholding pattern, promoters of the company only own a 14.86 per cent stake while an 85.13 per cent stake is owned by the public as of June 2024. From Rs 0.04 to Rs 1.64 per share, the stock gave multibagger returns of over 4,000 per cent in 3 years.

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