Multibagger NBFC Stock Hit 20% Upper Circuit On Fundraising Plan: Do You Own?

Mufin Green Finance Ltd is a small cap NBFC company dealing in the financial services sector. The scrip opened higher today on the BSE at Rs 63 apiece and hit a 20% upper circuit limit at Rs 68.80 during the morning deals after the company informed stock exchanges regarding its fundraising plan.

"We wish to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Thursday, September 28, 2023, inter-alia proposal for raising of funds by way of issue of one or more of instruments comprising of equity shares, convertible securities of any other description or warrants or debt securities, through Private Placement/Preferential Issue/Qualified Institutions Placement or such other methods or combinations thereof as may be decided by the Board, subject to such statutory/regulatory approvals as may be necessary, including the approval of the Shareholders of the Company, wherever required," said Mufin Green Finance in a stock exchange filing.

Pankaj Gupta, the company's CEO, recently revealed to the media that the company aims to increase its loan book from Rs 350 crore as of July-end to Rs 750-850 crore by the end of FY24. The NBFC aims to increase the number of vehicle sales from the existing 2,000 to between 3,000 and 4,000 per month, Gupta added, in order to increase its loan book. According to Pankaj Gupta, Mufin Green Finance also intends to go public on the National Stock Exchange during the current fiscal year.

On a standalone basis, the company recorded net sales of Rs 17.52 crore in the June 2023 quarter up 304.74% from Rs. 4.33 crore in the June 2022 quarter. Its net profit was Rs. 3.45 crore in the first quarter of FY24, up 200.87% from Rs. 1.15 crore in the same period of FY23. Its EBITDA was Rs. 11.02 crore, up 451% from Rs. 2.00 crore in the same period of FY23. Mufin Green's earnings per share (EPS) dropped from Rs. 0.53 in June 2022 to Rs. 0.23 in June 2023.

The stock price jumped from Rs 3.16 to the current market price during the past five years, resulting in a multibagger return of 1,776.36%. The stock price climbed from Rs 2.92 to the current market price during the past three years, resulting in a multibagger return of 2,258.86%. The stock has produced a multibagger return of 198.22% during the past year, and YTD, the scrip has gone up by 76.86% so far in 2023.