Multibagger in 3 months: Capfin India hits new all-time high

Recapping Monday’s market performance, the benchmark indices ended the trading session on a positive note. The Sensex saw a significant rise of 0.92%, closing higher, and the Nifty also posted a strong gain of 0.94%.

In this optimistic market, the shares of Capfin India Limited soared 2%. What adds to the intrigue is that the stock hit an all-time high of Rs 135.35 per share on BSE and also triggered the upper circuit at the same price.

With a price below Rs 150, Capfin India Limited presents an affordable investment opportunity for investors interested in the financial services sector. This affordability factor may attract investors looking to diversify their portfolio at a reasonable cost.

Company profile:

Established in 1992, Capfin India Ltd is a lending institution that offers financial assistance to both corporate entities and non-corporate individuals.

The company offers a diverse range of financial services, including Home Loans, Property Loans, Car Loans, Personal Loans, Unsecured Business Loans, and SME & Corporate Loans to cater to the financial needs of its clients.

The company’s ownership structure is quite intriguing, marked by a relatively modest promoter holding of less than 18.15%. This suggests that the key individuals or entities who initially established the company and are typically its driving force have a limited share in the ownership.

On the contrary, the public holds a significant majority of the company’s shares, accounting for 81.86%. This points to a substantial portion of the company being in the hands of individual and institutional investors beyond the founding group, potentially leading to a more broadly distributed ownership and decision-making landscape.

An encouraging aspect is that there is a 0% pledge, which means that none of the shares have been pledged as collateral for any loans or obligations.

Furthermore, the company has proven to be a true multibagger stock, delivering remarkable returns of over 100%. Coined by Peter Lynch, the term “multibagger stock” symbolizes exceptional growth and substantial returns, akin to a baseball player advancing to multiple bases. It represents an impressive achievement in the world of investing.

Capfin India Limited perfectly aligns with this definition, witnessing substantial buying activity and experiencing a surge of over 207% in the last 3 months.

Disclaimer: This blog 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.