High ROE & High ROCE Penny Stock Under Rs 20: Company Enters Into Joint Venture with Fintech Cloud Pvt Ltd for Business Expansion
The stock is up by 10.4 per cent from its 52-week low of Rs 15.50 per share and gave multibagger returns of over 1,100 per cent in 5 years.
On Wednesday, shares of UY Fincorp Ltd plunged 4.04 per cent to Rs 17.11 per share from its previous closing of Rs 17.83 per share with an intraday high of Rs 18 per share and an intraday low of Rs 17.06 per share.
The Board of Directors, during their meeting held on April 9th, 2025. The board has approved the expansion of the company's business operations under a new brand name, "FUNDOBABA." This strategic move will involve venturing into the small-ticket size personal and business loan sector.
To facilitate this expansion, the company has entered into a contractual joint venture agreement, also dated April 9, 2025, with Fintech Cloud Private Limited (FCPL). The purpose of this agreement is to leverage FCPL's expertise in managing the newly established "FUNDOBABA" business line. Under the terms of the agreement, the company will invest Rs 20,00,00,000 (Rupees Twenty Crore Only) into this expansion, utilizing its existing NBFC license. This investment will be locked in for a period of three years. Notably, the company will not hold any shareholding in FCPL.
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U.Y. Fincorp Ltd is a non-banking financial company registered with the Reserve Bank of India. Established in 1993, the company primarily focuses on providing financial services such as inter-corporate loans, personal loans and investments in securities. UYFL offers a range of fund-based services like infrastructure funding, industrial asset funding, loans against shares and real estate funding. Additionally, they provide fee-based services like loan syndication and project counselling. With a clientele that includes prominent names in various industries, UYFL has been expanding its operations through new brand initiatives and partnerships with microfinance institutions.
The company has a market cap of over Rs 326 crore. The shares of the company have a PE of 21x, an ROCE of 30 per cent and an ROE of 23 per cent. The stock is up by 10.4 per cent from its 52-week low of Rs 15.50 per share and gave multibagger returns of over 1,100 per cent in 5 years. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.