Comfort Fincap Limited is an NBFC (Non-Banking Financial Company) which is primarily focused on providing inter-corporate loans, personal loans, loans against shares and so on. The company has positioned itself between the organized banking sector and local money lenders, offering customers competitive, flexible and timely lending services.
In a recent exchange filing, Comfort Fincap Limited said that its board of directors have approved the sub-division/split of the existing equity shares of the company having a face value of ₹ 10 each into five equity shares of a face value of ₹ 2 each, subject to the approval of the shareholders.
The rationale behind the stock split is to enhance the liquidity in the market, widen the shareholder base and make the shares more affordable to small investors. The split is expected to be completed within four months from the date of approval, i.e., from February 03, 2023.
Comfort Fincap has a market capitalization of ₹ 107 crores and its shares closed at ₹ 99.35 apiece on the National Stock Exchange (NSE) on Monday. It has a return on equity of 10.29% and a debt-to-equity ratio of 0.96. Its shares were trading at a price-to-earnings ratio of 23.21, which is significantly higher than the industry average of 13.63, indicating that the stock might be overvalued as compared to its peers.
The company has given multibagger returns of 728.61% in the past two years as its share price increased from ₹ 11.99 to ₹ 99.35 apiece. Therefore if an investor would have invested ₹ 1 lakh in the company’s shares two years ago, the value of their holdings would have been ₹ 8.28 lakhs today.
Written by Simran Bafna
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