Up 6,600% In 3 Years: This Multibagger Penny Stock Soars 5% As Board Announces Meet For Rights Issue

The shares of Standard Capital Markets Ltd experienced a 5% surge, hitting a new 52-week high at Rs 3.36 per share. The Board of Directors of the company is set to meet on February 27, 2024, to discuss the issuance of new instruments, including equity shares and convertible securities.

Standard Capital Markets Ltd, a non-deposit, non-systemically important NBFC licensed by the Reserve Bank of India, has been making waves in the financial sector since its establishment in 1987. The stock's recent climb to Rs 3.36 per share, coupled with its impressive profit growth of 100% CAGR over the last 5 years, has drawn considerable attention from investors.

The company, classified as an NBFC-Investment and Credit Company (NBFC-ICC), boasts a market capitalization of Rs 493.92 crore. It recently achieved a remarkable milestone by locking its shares at a 5% upper circuit, marking a significant increase from its previous closing at Rs 3.20 per share.

The official exchange filing provided insights into the upcoming board meeting, stating, "inform your good office that a meeting of the Board of Directors of Standard Capital Markets Limited (the Company) is scheduled to be held on February 27, 2024, inter alia, to consider the issuance of one or more instruments, including equity shares/convertible securities, either by way of preferential issue/rights issue/or any other mode as may be considered or as may be deemed fit and/or other modalities including determination of price thereon."

Standard Capital Markets established a wholly-owned subsidiary, Standard Capital Advisors Limited, to operate as a merchant bank. This expansion into merchant banking activities, managed by CFO Mr Akash Bhatia, aims to assist companies in managing, registering, and launching offerings of various financial instruments, such as shares, debentures, and certificates.

Quarterly results showcased the company's robust financial performance, with net sales increasing by 94.4% to Rs 5.78 crore, operating profit soaring by 243.7%, and net profit skyrocketing by 647.8% to Rs 3.32 crore in Q3FY24 compared to Q3FY23. For the nine-month period ending December 2023, net sales surged by 272.2% to Rs 16.70 crore, and net profit witnessed an impressive growth of 1,203% to Rs 8.20 crore compared to the same period in the previous fiscal year.

The half-yearly results (H1FY24) continued the trend, with net sales surging by an astonishing 426% to Rs 10.92 crore, and net profit leaping an impressive 2,560% to Rs 4.90 crore year-over-year. This remarkable performance extends to FY23, where net sales jumped by 2,093% to Rs 8.05 crore, and net profit galloped by 2,584% to Rs 2.23 crore, compared to FY22.

A closer look at the shareholding pattern reveals that promoters of the company only own a 17.81% stake, leaving the remaining 82.19% in the hands of the public. Investors have been handsomely rewarded, with the stock delivering multibagger returns of nearly 170% in just 1 year, and 6,620% in 3 years.