Srestha Finvest Ltd. experienced a notable share price increase of approximately 4%, rising from Rs 0.79 to Rs 0.82. Over the past year, the stock has appreciated by 30%, with a year-to-date increase of 27%. While the share price remains 36% below its 52-week high, it is still 67% above its 52-week low, indicating a robust market performance.
In its recent regulatory filing, the company announced plans to raise over Rs 200 crore through equity share offerings, including a premium. The funds will be directed toward alleviating working capital constraints and enhancing the firm’s overall capital. This move aligns with the company’s current expansion phase and various corporate strategies aimed at strengthening its position in the market.
Srestha Finvest has demonstrated impressive financial growth, with its top-line revenue for Q1FY25 soaring by 1,634% to Rs 227.80 million, compared to just Rs 3,950 million in Q1FY24. The net profit surged significantly as well, reaching Rs 3,100.62 million, a staggering increase of 6,963% from Rs 43.90 million a year earlier.
For the fiscal year 2024, the company reported a total income increase of 269%, achieving Rs 1,013.01 lakh compared to Rs 274.56 lakh in the fiscal year 2023. After five consecutive years of losses, including FY23, FY22, FY21, FY20, and FY19, Srestha Finvest returned to profitability, reporting a net profit of Rs 173.86 lakh, up from a loss of Rs 497.41 lakh in FY23.
Established in 1985, Srestha Finvest offers a range of financial services, including loan financing and investments. As a Category B Non-Systemically Important Non-Deposit Taking Non-Banking Financial Company (NBFC), it can issue loans secured by a pledge of securities or movable and immovable property. The firm also provides hire purchase and leasing services and engages in share trading and investment.
The recent positive performance is attributed to effective growth strategies that have improved its diversified business model. With a market capitalization of Rs 152.52 crore, Srestha Finvest aims to leverage the planned Qualified Institutional Placement (QIP) to pursue new opportunities within the financial services industry. The enhanced capital structure is expected to facilitate acquisitions and drive future growth, ultimately benefiting shareholder value.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The content does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Investors should conduct their research and consult with a qualified financial advisor before making any investment decisions. The performance of Srestha Finvest Ltd. shares is subject to market risks, and past performance is not indicative of future results.
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