Penny Stock Below Rs 2 In Green After Declaring Q3 Results: Do You Own?

With a market capitalization of Rs 71.92 Cr, Srestha Finvest Ltd is a micro-cap company in the finance industry. The penny stock below Rs 2 opened today on the BSE at Rs 1.24 apiece and rallied to an intraday high of Rs 1.27 logging a gain of 2,41% after the company declared financial results for the quarter ended 31st December 2023.

Compared to a net loss of Rs 0.32 crore in the quarter that ended in December 2022, Srestha Finvest reported a net loss of Rs 0.46 crore in the quarter that ended in December 2023. Sales for Q3FY24 increased 180.00% to Rs 3.36 crore from Rs 1.20 crore in the corresponding quarter of the previous fiscal.

During the quarter, "the company has not provided interest of Rs. 51.19 Lakhs on borrowings for one of the parties due to ongoing dispute as to interest and claim rapayment. The company has sought opinion for legal opinion against the claim and shall proceed according to the legal advise. The Company has not declared any interim dividend for the fiscal year," said Srestha Finvest in a stock exchange filing.

"Based on information provided to us by management, the company has not provided Interest of Rs.51.19 Lakhs on borrowings from Arcadia Shipping Ltd. The company has received letters from Arcadia shipping Ltd recalling the Interest and Loan outstanding. Based on the explanation given to us, the company has not given response for the same and is exploring legal options.

As per Ind AS and Generally Accepted Accounting Principles, accounting policies adopted for annual accounts are to be followed for Interim Financials. Non-provision of the Interest has resulted in decrease in Finance Cost for the Quarter and Nine months ended 31.12.2023 to the extent of Rs.17.07 Lakhs and Rs.51.19 Lakhs respectively, and decrease in Loss after Tax for the Quarter and Nine months ended 31.12.2023 to that extent," said Srestha Finvest in a stock exchange filing.

As part of their business sector, Srestha Finvest Ltd. also engages in stock and share trading and investing. Under the wholesale lending business, credit solutions are offered for both short- and long-term working capital requirements, personal finance, mezzanine financing, acquisition financing, project financing, promoter funding, and other events.