Special dividend declared for the first time after 2:1 bonus share & 10:1 stock split; A multibagger penny stock at Rs 1.94 with 4,750 per cent returns!

From Rs 0.04 to Rs 1.94 per cent, the stock gave multibagger returns of 4,750 per cent in 3 years.

Today, shares of Standard Capital Markets Limited gained 3.2 per cent to Rs 1.94 per share from its previous closing of Rs 1.88. The stock’s 52-week is Rs 3.52 and its 52-week low is Rs 1.15.

The Board of Directors of Standard Capital Markets Ltd approved an increase in the company's authorized share capital from Rs 150 crore (divided into 150 crore equity shares of Rs 1 each) to Rs 200 crore (divided into 200 crore equity shares of Rs 1 each), subject to shareholder approval. Additionally, they approved a preferential issue of 26 crore equity shares (face value of Rs 1 each) at Rs 2.72 per share to convert outstanding unsecured loans of Rs 70.72 crore, and a special interim dividend of Rs 0.01 per share for the financial year 2023-24, both also requiring shareholder approval.  

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 and recent 100 per cent CAGR profit growth over the last 5 years, they've established a wholly-owned subsidiary, Standard Capital Advisors Limited, to expand their reach into merchant banking activities.

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According to Quarterly Results, the net sales increased by 94.4 per cent to Rs 5.78 crore, operating profit increased by 243.7 per cent and net profit increased by 647.8 per cent to Rs 3.32 crore in Q3FY24 compared to Q3FY23 while the net sales increased by 272.2 per cent to Rs 16.70 crore and net profit increased by 1,203 per cent to Rs 8.20 crore in 9MFY24 compared to 9MFY23. 

In its half-yearly results (H1FY24), the net sales surged 426 per cent to Rs 10.92 crore and net profit leapt 2,560 per cent to Rs 4.90 crore, year-over-year. The impressive trend extended to FY23, where net sales jumped 2,093 per cent to Rs 8.05 crore and net profit galloped 2,584 per cent to Rs 2.23 crore, compared to FY22.

The shares of the company 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 17.74 per cent stake while an 82.26 per cent stake is owned by the public. From Rs 0.04 to Rs 1.94 per cent, the stock gave multibagger returns of 4,750 per cent in 3 years.

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