Penny Stock Trading Under Rs 1 Hits 5% Upper Circuit On Expanding Beyond India With New Dubai-Based Subsidiary

The shares of Standard Capital Markets Ltd (SCML) jumped to Rs 0.53 per share from Rs 0.51, hitting the upper circuit limit at 5% on Friday. Following the Dubai expansion announcement by the company, the stock price gained attention, especially after it underwent a strategic rebranding. The stock, boasting a 52-week low of Rs 0.49 and a high of Rs 2.07, has been gaining attention.

Standard Capital Markets Limited, one of India's top financial service providers, disclosed intentions to set up a fully owned subsidiary at the Dubai International Financial Center (DIFC). This will enable SCML to consolidate its presence in the Middle East African region with a view to providing trade finance services, invoice discounting, and project finance services.

These new services will help to meet the growing SCML customer base that requires contact other than the regional services provided in India. Pending approval by the Reserve Bank of India (RBI) terms, this subsidiary will add to the network of India-compliant subsidiaries in DIFC and open head offices.

In Q3FY25, SCML net sales experienced a remarkable growth of 106% from last quarter's losses, hitting Rs 20.28 crores compared to Rs 9.84 crores in Q2FY25. SCML did incur a net loss in the quarter, amounting to Rs 45.10 crores as opposed to a loss of Rs 0.70 crores in the preceding quarter.

Net sales for the nine-month period ending December 2024 (9MFY25) stood at Rs 38.16 crores, which further added to the net loss of Rs 44.05 crores. In FY24, the company declared net sales quantifying to Rs 27.39 crores along with a greater net loss of Rs 10.71 crores.

SCML has capitalized at Rs 92 crores, securing a remarkable CAGR profit growth of 173% over the past five years. The stock has received multibagger status, generating 550% returns over the tenure of three years and 1200% in five years.

As of December 2024, promoters declared a stake of 13.89%, leaving public shareholders with a greater ownership stake of 86.11%. SCML registered with the RBI as an NBFC provides a plethora of financial services alongside legal and advisory services, granting SCML established status since 1987. SCML also runs a subsidiary merchant banking firm, which aids in the expansion of Standard Capital Advisors Limited.

Standard Capital Management Limited (SCML) has undergone vast alterations in scope while preserving its aim to boost financial accessibility along with growth in the educational sector.