NBFC Stock Hits Upper Circuit On Stellar Q1 Results & 2:1 Stock Split Ahead

Shares of Srestha Finvest Limited hit the upper circuit after the company announced its impressive Q1 results, signalling strong investor confidence. On Wednesday, the shares of Srestha Finvest ended on the BSE at a 5% upper circuit limit at Rs 2.14 apiece with a market cap of Rs 175.48 Cr.

Srestha Finvest's net profit improved to Rs 31.01 crore in the quarter that ended in June 2024, up 6947.73% from Rs 0.44 crore in the quarter that ended in June 2023. In Q1FY25, revenue climbed 1632.46% to Rs 39.50 crore from Rs 2.28 crore in Q1FY24.

The company recently revealed a stock sub-division plan, with shares set to be split in a 2:1 ratio. Initially opening at Rs 2.09 on the Bombay Stock Exchange (BSE), the stock dipped slightly from its previous close of Rs 2.20. However, it soon surged, reaching a high of Rs 2.27, and was last seen trading at Rs 2.26. The company confirmed in an exchange filing that it has approved and recommended the sub-division of one equity share of face value Rs 2/- into two equity shares of face value Re 1/- each. The record date for this sub-division will be announced later.

In a significant development last month, Srestha Finvest Ltd expanded its strategic partnership with Felix Industries Ltd to foster sustainable growth. The two companies signed a Facility Agreement to strengthen their collaboration, focusing on renewable energy and water conservation projects. Under this agreement, Srestha will provide Felix with up to Rs 50 million in funding over two phases, which will support the construction of a new plant dedicated to renewable energy, clean water, and water recycling technologies. This new facility will cater to an order from Aarti Industries Ltd, underscoring the partnership's potential to drive significant advancements in environmental sustainability.

In May, Srestha Finvest announced its financial results for Q4 FY24 and the full fiscal year. The company reported a remarkable turnaround, posting a net profit of Rs 5.06 crore for the quarter ended March 2024, compared to a net loss of Rs 4.61 crore in the same quarter of the previous year. Sales for the quarter surged by an extraordinary 705.71%, reaching Rs 5.64 crore, up from Rs 0.70 crore in the corresponding quarter of the previous year. For the full year, Srestha Finvest reported a net profit of Rs 1.74 crore, reversing the net loss of Rs 4.97 crore reported in the previous fiscal year. Annual sales also saw significant growth, rising by 363.64% to Rs 12.75 crore, compared to Rs 2.75 crore in the previous year.

Headquartered in Chennai, Tamil Nadu, Srestha Finvest Limited is a specialized non-banking financial company (NBFC) that focuses on lending against securities, movable and immovable properties, and providing finance, hire purchase, and leasing services. The company's shares are listed on the Bombay Stock Exchange and the Metropolitan Stock Exchange. As a Category 'B' NBFC, registered with the Reserve Bank of India, Srestha Finvest does not accept public deposits and operates without any subsidiary companies.