Multibagger Penny Stock Under Rs 5 Declares 1:2 Stock Split; Check NBFC Details

Srestha Finvest, a leading penny stock that has delivered strong returns over the past year, has announced a 1:2 stock split. The company's board of directors approved the decision to split each share into two parts during a recent meeting. This move will see the face value of the shares decrease from Rs 2 to Rs 1.

The stock, which was priced below Rs 5, has doubled in value over the past year, rising from Rs 1.10 to Rs 2.41. This announcement follows a previous stock split in 2016, when the company divided its shares into five parts, reducing the face value to Rs 2 per share.

Srestha Finvest is traded exclusively on the BSE and ended Friday with a market cap of Rs 197 crore. The stock, which finished under Rs 5, saw a trade volume of 3,49,67,793 shares. Its 52-week high stands at Rs 2.56 per share, and its 52-week low is Rs 0.98 per share.

Over the past month, Srestha Finvest's share price has increased from around Rs 1.88 to Rs 2.41, marking a 25% rise. In the last six months, the stock has surged from Rs 1.27 to Rs 2.41, logging nearly a 90% increase. Year-to-date, the penny stock has provided approximately 85% returns to its shareholders. Over the past year, the stock has risen from Rs 1.10 to Rs 2.41, delivering around 120% returns.

In June, Srestha Finvest reported standalone quarterly numbers for March 2024, showcasing a significant increase in net sales and profits. Net sales rose to Rs 5.64 crore, up 708.97% from Rs 0.70 crore in March 2023. Quarterly net profit increased to Rs 5.06 crore, up 209.75% from Rs 4.61 crore in March 2023. EBITDA for March 2024 stood at Rs 5.65 crore, up 227.54% from Rs 4.43 crore in March 2023. The company's EPS increased to Rs 0.09 in March 2024 from Rs 0.55 in March 2023.

Headquartered in Chennai, Tamil Nadu, Srestha Finvest Limited specializes in lending money against securities, movable and immovable properties, finance, hire purchase, and leasing. The company's shares are listed on the Bombay Stock Exchange Limited and the Metropolitan Stock Exchange Ltd. Registered as a Category 'B' NBFC by the Reserve Bank of India, Srestha Finvest does not accept public deposits and does not maintain any subsidiary companies.

The company's recent stock split aims to enhance liquidity and make its shares more accessible to retail investors. While the record date for the stock split has not yet been announced, it is expected to be decided in the coming days.

Srestha Finvest's recent announcement of a 1:2 stock split reflects its ongoing commitment to increasing shareholder value. With significant gains in share price and robust financial performance, the company continues to strengthen its position in the NBFC sector. Investors and market watchers will be keenly awaiting the record date for the stock split, anticipating further growth and profitability for Srestha Finvest in the future.