The shares of Shriram Asset Management Company Limited hit an upper circuit of 19.99 percent at Rs 145.25 levels on Tuesday’s session. In the past five days, the stock has zoomed by approximately 35 percent.
The board of the company announced that they have approved the appointment of Kartik Jain as its new MD and CEO. According to the company, the appointment is subject to regulatory and shareholder approvals. Jain’s appointment as MD and CEO will re-orient the brand’s customer strategy and enhance operational efficiency, it added.
Shriram Mutual Fund is part of Shriram Group, one of the leading players in lending for commercial vehicles, two-wheelers, small businesses and retail, life and general insurance, and various financial services solutions. It stands as the ‘First listed AMC’ in the country.
The total revenue of the company jumped by 22 percent Year on Year to be at Rs 1.76 Crore in Q2FY23, up from Rs 1.44 Crore in the same quarter last year. The AMC reported a loss of Rs 99 lakh in the quarter compared to a profit of Rs 20 lakh in Q2FY22.
The scrip traded at Rs 53.50 a piece around the same time in 2022. From there it has scaled up to the current levels logging a multibagger return of 172 percent in two years. An investment of Rs 1 lakh then would be worth Rs 2.72 lakhs today.
The small-cap company has a market capitalization of Rs 87 Crore. The promoters, Shriram Credit Company Limited hold a 68.67 percent stake while the remaining 31.33 percent stake is held by the public.
Written by Anoushka Roy
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