Today, it was in green; the closing of the stock market breadth through Sensex Index and Nifty-5O Index closed with an increase of 0.22 percent and 0.25 per cent, respectively. Other than the green market, at 09:30, one multibagger share price stock gained more than 9 per cent to an intraday high and a fresh new 52-week high of Rs. 76 per share from its previous close of Rs 69.62 per share with spurt in volume by more than 1.01 times on BSE. The stock, which has been seeing heavy trading in the last few days, already gained more than 9 percent of its 20 percent probable upward price range of Rs 83.54. Recently, no major announcement was made from the company. Hence, the rally in the share price could have only been purely driven by market forces. The stock name is Industrial Finance Corporation of India Ltd.
IFCI Ltd, earlier known as the Industrial Finance Corporation of India, is a public sector undertaking and a non-banking financial institution set up in the year 1948 with the sole purpose of providing long-term financial support for industrial projects in India. The company, turning recently into an NBFC, aids industries such as airborne, roads, telecommunication, power, real estate, manufacturing, and the service industry.
The President of India holds a 71.72 percent ownership in this small-cap corporation, while LIC holds a 1.86 percent investment.
The multibagger share price company has witnessed a dramatic financial recovery both in its fourth quarter and for the whole fiscal year.
Net sales for the Mar quarter of FY24 surged by 46.4 percent to Rs 605.42 crore from Rs 413.65 crore in the same quarter a year ago. More impressively, it changed from a net loss of Rs 241.18 crore in Q4FY23 to a net profit of Rs 157.32 crore in Q4FY24, thereby registering an astounding 165.2 per cent improvement in financial performance. FY24 became a year of great financial turnaround for the company.
The net sales of the company rose 17.2 per cent to Rs 1,986.58 crore from Rs 1,694.64 crore in FY23. It further broke a five-year losing streak by declaring a net profit of Rs 241.05 crore in FY24, which constitutes an improvement over the net loss of Rs 119.78 crore it had incurred in FY23 through substantial turnaround and excellence gain of 301.2 per cent. The other side of financial transformation depicts a changing trajectory of improved financial health for the entire company. The President of India’s portfolio—under the ownership of the Ministry of Finance, Government of India—was infused with 12,39,77,188 shares to have stakes increased to 71.72 per cent March in April 2024 from 70.31 per cent in March 2024. The market cap of the company is over Rs 19,000 crore.
The stock has given a multibagger return of 500 per cent in just 1 year while BSE Sensex Index is up by 22 per cent. One needs to keep an eye on this stock.