10% Dividend, 2:1 Bonus, 2200% Returns: Multibagger Smallcap NBFC Hits Upper Circuit On Ratings Upgrade

The shares of Mufin Green Finance Limited surged by 10% on Monday, hitting the upper circuit for the second consecutive session. This rally saw the stock open sharply higher at Rs 129 apiece on the National Stock Exchange (NSE), up from its previous close of Rs 119.40. The stock peaked at Rs 131.34 before trading was halted, marking a robust response from the market.

Monday's trading session witnessed significant activity, with approximately 3.37 lakh equities of the company changing hands. This surge follows a similar pattern from Friday when the stock also hit the upper circuit. Over the last three trading sessions, Mufin Green Finance has seen a commendable gain of 25%, showcasing strong investor sentiment and market momentum.

The catalyst behind Monday's surge was a credit ratings upgrade by Acuite Ratings & Research, a reputable credit rating agency registered with the Securities and Exchange Board of India (SEBI). The agency upgraded Mufin Green Finance's ratings on its bank facilities, Non-Convertible Debentures (NCDs), and bonds from BBB | Stable to BBB+ | Stable. This upgrade reflects increased confidence in the company's financial health and future prospects.

Mufin Green Finance has secured a term loan of Rs 270 crore from several prominent financial institutions, including the State Bank of India, Indian Renewable Energy Development Agency (IREDA), ICICI Bank, Yes Bank, AU Small Finance Bank, ESAF Small Finance Bank, and Capital Small Finance Bank.

Mufin Green Finance is a financing company within the electric vehicle (EV) ecosystem. The company focuses on providing financial solutions for two-wheelers, three-wheelers, four-wheelers, fast chargers, and swappable batteries. This strategic focus positions Mufin Green Finance as a pivotal player in the rapidly growing EV sector, which is gaining momentum globally as countries push for greener, more sustainable transportation solutions.

According to BSE analytics as of June 10, the shares have delivered a multibagger return of 211% in just one year. Looking back over two years, the stock has surged by a staggering 778%. Investors who held onto the stock for three years have seen their investment multiply by over 2200%.

Mufin Green Finance's financial performance in the fourth quarter (Q4 FY2024) further highlights its strong market position. The company reported a net profit of Rs 4.05 crore, marking a more than 50% year-over-year increase. In the same quarter of the previous year, the net profit stood at Rs 2.66 crore, indicating significant growth driven by higher income.

With operations spanning more than a dozen cities, Mufin Green Finance commands a market capitalization of Rs 2,020.85 crore. As of 2:15 pm on the Bombay Stock Exchange (BSE), Mufin Green Finance shares were firmly locked in the 10% upper circuit at Rs 131.45 per share.

The future looks promising for Mufin Green Finance as it continues to capitalize on the growing demand for electric vehicles and related infrastructure. The company's strategic focus on the EV ecosystem, combined with strong financial backing and a positive credit rating outlook, positions it well for sustained growth.

Mufin Green Finance's impressive stock performance and recent credit rating upgrade highlight the company's robust growth and strategic positioning within the EV financing sector. The continued upward trajectory of its stock price is a testament to the market's confidence in its future prospects and the potential of the electric vehicle market in India.