The share of the financial services provider surged up to 4 percent in the day’s trade after the company plans to expand its product portfolio in rural areas.
With a market capitalization of Rs 437.50 crores, the shares of Shalibhadra Finance Limited closed flat at Rs 625 apiece on Tuesday’s market hours. It generated a multi-bagger return of 353 percent over the past year and 39.26 percent over the past six months.
What happened: According to Shalibhadra Finance Limited’s stock exchange filings, the firm announced that it has expanded its product portfolio by venturing into the housing finance business by adding small-ticket size housing finance to its product mix.
Why it matters: the company expanding its product portfolio to build a network and deep-rooted presence in rural areas and aims to make a significant impact by providing accessible and affordable housing finance solutions.
Financials: Reviewing the financials of Shalibhadra Finance Limited on a year-on-year basis, the revenues rose by 17.8 percent from Rs 28 crores in FY23 to Rs 33 crores in FY24. In the same time frame, the net profits increased from Rs 8 crores to Rs 12 crores demonstrating a 50 percent increase.
Ratios: In terms of return ratios for the year 2024, it has reported a return on equity (ROE) of 13.9 percent and a return on capital employed (ROCE ) of 15.8 percent.
Following the new government formation, Prime Minister Narendra Modi announced an ambitious plan to build 3 crore new houses under the Pradhan Mantri Awas Yojana in villages and cities. It reflects the government’s commitment to improving rural living conditions, this initiative will help the company to expand its customer base and product portfolio.
Shareholding pattern: As of March 2024, the firm’s ownership structure showed that promoters held 60.00 percent of the shake and the rest 40 percent was held by the public.
About the company: Incorporated in 1992 and headquartered in Mumbai Shalibhadra Finance Limited is in the business of asset finance focusing on rural, semi-urban & other under-banked geographies of Gujarat, Maharashtra & Madhya Pradesh. Its product portfolio includes two-wheeler loans, used two-wheeler loans, used three / four-wheeler loans, and consumer durable loans.
Written By Zahal.
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