Domestic Benchmark Indices Sensex and Nifty 50 snapped a two-day losing streak, supported by gains in banking stocks. On February 9, Sensex gained up to 0.3 percent to 71,595 and Nifty jumped to 21,782, gaining around 0.3 percent. Bank Nifty helped pull the benchmark forward as it gained over 1 percent. 

Listed below is one such micro-cap stock that has delivered multibagger returns of 14,745 percent to its stakeholders in 2 years: 

Jhaveri Credits and Capital Ltd: 

With a market capitalisation of Rs. 293 crores, the shares of Jhaveri Credits and Capital Ltd started Friday’s trading session on a lower note at Rs. 452.80. Within a few minutes of the opening bell, the shares hit a 2 percent lower circuit at Rs. 452.80 apiece. 

In May 2022, the stock price was trading at Rs 3.05 exhibiting a gain of around 14,745 percent compared to the current price. For example, if someone had invested Rs. 1 lakh into the company’s stock 2 years ago, it would have converted to approx Rs 1.48 crores now. 

Having a look at the latest financial statements published by the company, the operating revenues as well as net profits have shown positive movements. 

The revenue zoomed by around 130 percent from Rs. 10 lakhs during the June quarter to Rs. 23 lakhs during the September quarter. In addition, the net profit magnified by 1600 percent from Rs. 2 lakhs to Rs. 34 lakhs during the same timeframe. 

Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 3.67 percent during FY 21-22 to 8.99 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 5.92 percent to 10.23 percent during the same timeframe. Furthermore, the net profit margin increased marginally from 0.03 percent during FY21-22 to 0.07 percent in FY22-23. 

Moreover, Jhaveri Credits and Capital Ltd. plans to enter into the Real Estate business, i.e. to develop properties and deal with real estate assets. 

According to the latest shareholding pattern, Promoters hold 74.25 percent of the stake and the remaining 25.74 percent of shares are with the Retail Investors. 

Headquartered in Vadodara, Jhaveri Credits and Capital Ltd was incorporated in 1993. The company is engaged in the business of leasing, hire purchase, intercorporate deposits, and investments in primary and secondary markets. 

Written By Vaibhav Patil


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