Penny Stock Under Rs 20 Expands Its Business Activities By Acquisition of Stake

LKP Securities Limited, a key player in stock broking and providing financial services, continues to show a good growth trend captured in its financials. Shares of the company traded at Rs 19.45 on Thursday, with a 52-week low and high of Rs 17.29 and Rs 30.80, respectively. The company has a market capitalization of Rs 160.62Cr and has given a return of 411% over the last five years, which is quite impressive.

The Board of Directors of LKP Securities has purchased 1,98,000 equity shares of Bond Street Capital Private Limited previously held by LKP Finance Limited. This stake purchase, which represents 19.90% of Bond Street Capital, was purchased by LKP Securities on March 26, 2025. This move demonstrates the company's active management of its investment portfolio in search of new opportunities.

The LKP Securities has shown a consistent improvement in its financials over the last five quarters. The company's Profit After Tax climbed 173.50 percent to Rs 6.4 crore, while the Net Sales also increased by 28.07 percent to Rs 59.08 crore. The company's Return on Equity is also pretty good at 17.91% meaning efficient utilization of capital.

LKP's net sales and EBITDA for the previous quarter of FY24 came in higher, which was encouraging; revenues were up 3.36% YoY to Rs 24.93 Crores, while net sales were up 11.55% YoY to Rs 5.70 Crores. Earnings Per Share also improved, increasing to Rs 0.23 from Rs 0.22 in the prior year period.

The company also remains attractive from a valuation perspective, as LKP Securities remains an attractive investment with a P/E of 10.47, a price-to-book value of 1.91, and EV/EBITDA of 2.87 relative to peers in the industry. These fundamentals show good performance and positive expectations.

LKP tried to maintain control over its subsidiary LKP IFSC Private Limited by funding a rights issue of Rs 50 lakh ahead of the company's planned commencement of broking and alternative investment fund management at GIFT City in FY24 -25. The investment has a sealed date of August 14, 2024 and will remain within reach of fully owning the company by LKP Securities.

Offering equity and debt broking, portfolio management, structured products, research-driven advisory services, LKP Securities is a diversified financial services company established in 1948. The company serves retail investors, corporates, and institutional clients across more than 150 cities in India.