Microcap Stock Splits 2:1, Delivers 1,634% FY25 Revenue Surge; Should You Consider Buying?

Srestha Finvest Limited, a microcap penny stock with share prices below Re. 1, has garnered investors attention lately due to a surge in prices after the company announced FII investment.

Recently the company saw huge investments from the foreign institutional investors. As reported by Qrius, FII now holds 0.53% of the company shares, i.e., 86,69,122 shares. Due to its low pricing and FII backing, it makes the penny stock a great option for the investor to churn profit from this stock.

Stock Market Developments

On November 21st, the stock opened 3.23% higher than its previous close and is currently trading at Rs. 0.64. While the stock has experienced a 10% decline over the past five days and a 14% drop this month, it has shown promise over a longer timeframe, with a 10% increase in the last six months and overall profitability for the year. The stock has recovered significantly from its 52-week low of Rs. 0.49, now trading 30% higher.

In an effort to attract more investor interest, the company announced a stock split on September 22nd this year, issuing two Rs. 1 shares for every Rs. 2 share.

Srestha Finvest Ltd. Financial Performance

Srestha Finvest Ltd. has shown strong growth in Q2 FY25 as the company's revenue surged to Rs. 3,950 lacs, which is 1,634% higher than Rs. 227.80 lacs in Q1 of FY24. The total income increased by 7% to Rs. 358 lacs, compared to Rs. 210 lacs in Q2FY24. The net profit of the company also saw a rise of 6,963% at Rs 3,100.62 lacs from the previous quarter's profit of Rs 43.90 lacs. The company declacred a net profit of Rs 173.86 lacs in FY24, a good turnaround from a net loss of Rs 497.41 lacs in FY23, thereby ending a losing streak that has lasted 5 years between FY19 and FY23. For the H1FY25, Srestha Finvest achieved a net profit of Rs. 1,619 lacs, a remarkable improvement from the net loss of Rs. 286 lacs in the last five years.

About Srestha Finvest Ltd

Srestha Finvest Ltd is a non-banking financial company (NBFC). Their main business vertical includes investments and trading in stocks. The company aims to build and develop its business model into customized product solutions for its clientele also over a period of time in the near future. Established in 1985, Srestha Finvest Ltd is a diversified financial services provider. Operating under a Category B Non-Systemically Important Non-Deposit Taking an NBFC-Investment and Credit Company license, the firm specializes in asset-backed loans (secured by securities, movable, and immovable properties), hire purchase and leasing options, trading, and investment in shares. The company boasts a market capitalization exceeding Rs. 100 crore, reflecting its growing significance in the financial sector.