Shares of this microcap company clocked 5 percent upper circuit in Tuesday’s trading session after announcing a 300 percent increase in demand for its Supply Chain Finance solution. In six months, the shares have delivered a multibagger return of 106 percent to its shareholders.
With a market capitalisation of Rs. 617 crores, the shares of Veefin Solutions Ltd started Tuesday’s trading session on a higher note at Rs. 284.95 compared to its previous close of Rs.277.50. During the trading, session the shares clocked 5 percent upper circuit at Rs. 291.35 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had witnessed a 300 percent increase in demand for its Supply Chain Finance solutions from Indian and global financial institutions in FY 2023- 24.
Furthermore, they mentioned that from new-age NBFCs and private sector banks like State Bank of Mauritius, Muthoot Fincorp, Aditya Birla Finance, Yes Bank, IDFC FIRST Bank, JSW One, Central Bank of India, to Small Finance Banks like Ujjivan and AU and have signed up with Veefin for large scale deployment of SCF programs.
Moreover, the company has also been appointed by the PSB Alliance, a body representing all 12 public sector banks in India, to develop and run a unified Supply Chain Ecosystem for all the banks and NBFCs in the country.
Veefin’s Supply Chain Finance platform facilitates digital SCF products for dealers and suppliers of corporate clients, enabling them to achieve their strategic business objectives, which include working capital efficiency, market expansion, sales acceleration, and strengthening supply chain partnerships.
The IT company also stated that, in addition to its robust integration with India’s digital infrastructure, i.e., India Stack and other key third-party data sources, the company’s platform offers ERP and Core Banking System (CBS) integrations. This synergy helps in credit underwriting, making it more reliable and efficient. The platform’s sophisticated rule-based algorithms and omni-channel capabilities ensure that MSMEs can access credit effortlessly.
Looking at the company’s financial statement, the revenue zoomed by 115 percent from Rs. 6.5 crores during FY21-22 to Rs. 14.08 crores in FY22-23. On the other hand, the net profits magnified from Rs. 91 lakhs to Rs. 4.28 crores during the same period.
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 9.67 percent during FY 21-22 to 16.01 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 7.16 percent to 18.37 percent during the same timeframe. Furthermore, the net profit margin increased from 13.89 percent during FY21-22 to 30.40 percent during FY22-23.
Headquartered in Mumbai, Veefin Solutions was incorporated in 2020. The company is one of the leading financial products and digital solutions providers that offer innovative solutions in the areas of Supply Chain Finance and Digital Lending. The company specializes in software for supply chain finance and has a diverse clientele, including banks, financial institutions, fintech firms, B2B marketplaces, and large corporates.
Written By Vaibhav Patil
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