Multibagger Penny Stock Under Rs 5 in Green as Board Announces 2:1 Stock Split & Rs 200 Crore Fundraising Via QIP; PAT Jumps 6,963 Per Cent YoY
From Re 0.98 per share (52-week low) to Rs 2.38 per share, the stock gave multibagger returns of 143 per cent.
Today, shares of Srestha Finvest Ltd gained 3.03 per cent to an intraday high of Rs 2.38 per share from its previous closing of Rs 2.31. The stock’s 52-week high is Rs 2.56 while its 52-week low is Re 0.98.
Srestha Finvest Ltd.'s Board of Directors convened on August 19, 2024, and approved several key resolutions. Firstly, the Board has proposed to increase the company's authorized share capital from Rs 167 crore to Rs 367 crore, subject to shareholder approval. This involves splitting the face value of existing shares from Rs 2 to Re 1, a process currently underway through a postal ballot concluding on September 5, 2024. Additionally, the Board has authorized an increase in the company's borrowing limits, as stipulated by the Companies Act, 2013, pending shareholder consent.
A pivotal decision made by the Board pertains to fundraising. Srestha Finvest Ltd. plans to raise up to Rs 200 crore through a Qualified Institutional Placement (QIP). This issuance of equity shares with a face value of Re 1 each will be subject to necessary approvals, including shareholder and regulatory clearances. The specific details of the QIP are outlined in Annexure A, as per SEBI guidelines. Furthermore, the Board has approved certain Material Related Party Transactions, which will require shareholder ratification following SEBI regulations.
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. The company has a market cap of Rs 194 crore.
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Quarterly Results
The total revenue increased by 1,634 per cent to Rs 3,950 lakh in Q1FY25 compared to the total revenue of Rs 227.80 lakh in Q1FY24. The company reported a net profit of Rs 3,100.62 lakh in Q1FY25 compared to a net profit of Rs 43.90 lakh in Q1FY24, an increase of 6,963 per cent.
Annual Results
The total income 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 lakh in FY24 compared to a net loss of Rs 497.41 lakh 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.
From Re 0.98 per share (52-week low) to Rs 2.38 per share, the stock gave multibagger returns of 143 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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