Penny Stock Under Re 1: NBFC Company to Establish Asset Reconstruction Company with Rs 300 Crore Commitment and Expected 15-20 Per Cent Return on Investment
The stock gave multibagger returns of 560 per cent in 3 years and 1,225 per cent in 5 years.
Standard Capital Markets Limited, based in Delhi, is launching an Asset Reconstruction Company (ARC) with a committed investment of Rs 300 crore. This new venture will specialize in managing and resolving distressed assets and non-performing loans (NPLs) within the financial sector. The company will also act as a sponsor for the ARC, demonstrating its firm commitment to this initiative.
The company anticipates achieving a return on investment (ROI) between 15 per cent and 20 per cent over the medium to long term. This projection is based on the expected success of resolving distressed assets and improving recovery rates. The ARC will focus on acquiring distressed assets, managing and restructuring them, and facilitating the resolution of NPLs, all supported by the Rs 300 crore investment.
The ARC will be managed by a team of experienced professionals in asset management, restructuring, and financial services. By tackling the issue of NPLs, the ARC aims to enhance the financial stability of banks and financial institutions, thus contributing to economic growth. Standard Capital Markets Limited is confident that this initiative will deliver substantial returns within the projected 15 per cent to 20 per cent range and strengthen the broader financial ecosystem.
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About the Company
Standard Capital Markets Ltd, an NBFC established in 1987 and registered with the RBI, offers a comprehensive suite of financial services beyond traditional banking. These include advisory services, arbitration, due diligence, legal assistance, and licensing support. To further expand its reach, the company established a wholly owned subsidiary, Standard Capital Advisors Limited, specializing in merchant banking activities. With a strong commitment to customer satisfaction and a focus on integrity and innovation, Standard Capital Markets Ltd. aims to provide valuable financial solutions to individuals and businesses while actively contributing to the growth of the education sector by ensuring accessibility to financial opportunities.
According to Quarterly Results, the net sales increased by 106 per cent to Rs 20.28 crore in Q3FY25 compared to net sales of Rs 9.84 crore in Q2FY25. The company reported a net loss of Rs 45.10 crore in Q3FY25 compared to a net loss of Rs 0.70 crore in Q2FY25. The company reported net sales of Rs 38.16 crore and a net loss of Rs 44.05 crore in 9MFY25 while the company reported net sales of Rs 27.39 crore and a net loss of Rs 10.71 crore in FY24.
The company has a market cap of over Rs 00 crore and has delivered good profit growth of 173 per cent CAGR over the last 5 years. According to the shareholding pattern, promoters of the company only own a 13.89 per cent stake while the public owns an 86.11 per cent stake as of December 2024. The stock gave multibagger returns of 560 per cent in 3 years and 1,225 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.