1,100% multibagger returns: This PSU company’s stock is ready to hit the half-century mark

IFCI, previously known as the Industrial Finance Corporation of India, is a non-banking finance company owned by the Indian government, established to meet the long-term finance needs of the industrial sector. There is a significant surge in the company’s stock price today.

At the start of the day’s trading session, the stock opened at Rs 40.89 per share, indicating an approximate 2% increase compared to the previous day’s closing figure of Rs 40.09 per share on the BSE. As of the time of writing this article, the shares are currently at Rs 48.10 per share on the BSE. The stock has reached the upper circuit price limit of 20%, reflecting strong demand in the market with no sellers willing to offer shares, resulting in potential buyers being unable to make purchases, leading to disappointment among buyers.

Furthermore, the company’s stock is about to reach a significant milestone of Rs 50 in the upcoming trading session. Today, the stock has touched the 2014 price level. Back in the year 2020, when the markets experienced a significant downfall, the stock was available at around Rs 4 per share. From this low point, the company never looked back and showcased robust strength. Today, it has reached Rs 48, representing an impressive multibagger return of 1,100%. If someone had invested Rs 1 lakh in this company, it would be valued at Rs 12 lakh.

The company’s current market capitalisation stands at Rs 11,975 crore, and the stock has generated an impressive return of around 270% during the past one year and around 440% return in the past three years.

Stock Chart (Monthly):

Financial Performance:

In the second quarter of FY24, the company reported revenues of Rs 607 crore, reflecting a growth of 47% YoY compared to the same quarter in the previous year, when the revenue stood at Rs 413 crore. The company posted an operating profit of Rs 681 crore for the quarter, in contrast to an operating profit of Rs 447 crore in the corresponding quarter of the previous year. Furthermore, the company reported a net profit of Rs 174 crore, compared to a net profit of Rs 209 crore in the same period last year. However, the company’s net profit has declined by around 17% YoY this quarter.

In terms of ownership, the Promoter holds 70.32%. The FIIs and DIIs hold 2.08% and 2.02%, respectively, while 21.57% is held by public investors as per the most recent update.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.