Mufin Green Finance Ltd, a small-cap company listed on the Bombay Stock Exchange (BSE) has announced a stock split after it rallied to give multibagger returns in the past year. It is a leading Non-Banking Financial Company catering to electric vehicle loans for a variety of vehicles that can be used for income generation. In addition, it provides financing for charging equipment and swappable batteries.
The company’s board has fixed April 15, 2023, as the record date for ascertaining the names of shareholders entitled to a sub-division or split of its equity shares having a face value of ₹ 2 each into two equity shares having a face value of ₹ 1 each, i.e., in the ratio of 1:2.
Muffin Green Finance’s shares closed at ₹ 231.45 apiece on Monday. They gave multibagger returns of 273.61% in the past year as their share price increased from ₹ 61.95 apiece to the current level. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 3.73 lakhs today!
In the past three years, the company’s share price surged from ₹ 16.24 apiece to the current level, giving multibagger returns of 1325.18%. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares five years ago, the value of their holdings would have been ₹ 14.25 lakhs today!
Muffin Green Finance is a small-cap company with a market capitalization of ₹ 582 crores. It has a return on equity of 11.32% and an ideal debt-to-equity ratio of 0.30. However, its shares were trading at a price-to-earnings ratio of 123.79, which is significantly higher than the industry P/E indicating that the stock is undervalued as compared to its peers.
The company’s revenue witnessed a sharp surge of 523.39% from ₹ 1.71 crores in the December quarter of 2021 (Q3FY22) to ₹ 10.66 crores in the December quarter of 2022 (Q3FY23). Similarly, its net profit increased by 281.67% from ₹ 0.60 crores to ₹ 2.29 crores during the same period.
Written by Simran Bafna
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