Shares of this small-cap NBFC stock hit the 20 percent upper circuit in Tuesday’s trading session after the company announced robust results for the quarter and financial year ending March 2024.
With a market capitalization of Rs 6,264.96 crores, the stocks of Jana Small Finance Bank Limited started their trading session on Tuesday at Rs 560 and currently trade at Rs 599, hitting the 20 percent upper circuit compared to the previous closing levels of Rs 499.20 apiece.
Such a spike in the share prices was observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced the financial results for the quarter and financial year ending March 2024.
Sequentially, the company reported an increase in its prime indicators of business such as total income as well as after-tax profits. The former rose from Rs 1,178 crores during Q3FY24 to Rs 1,290 crores during Q4FY24, and the latter, keeping the timeframe the same, shifted up from Rs 135 crores to Rs 322 crores.
In addition, the yearly movements of the metrics discussed above showed decent positive movements with the total income numbers increasing from Rs 1,010 crores during Q4FY23 to Rs 1,290 crores during Q4FY24, and the bottom-line numbers, on the other end, rose by a whopping 298 percent from Rs 81 crores to Rs 322 crores.
Historically, the company, as per the standalone results, reported increasing profit margins and profitability ratios. During FY24, the company’s net profit margin (NPM) was reported at 16.68 percent, return on equity (RoE) was reported at 18.71 percent and the return on capital employed (RoCE), in congruence with the pattern, was reported at 3.80 percent.
According to the latest presentations, the NBFC company’s net non-performing assets (net NPAs) were reduced from Rs 156 crores (0.71 percent) during FY23 to Rs 130 crores (0.56 percent) during FY24.
Jana Small Finance Bank Limited is a small-cap Non-Banking Financial Corporation (NBFC) engaged in various services including deposits, savings & current accounts, insurance, and advances including secured business loans, microloans against property, MSME loans, loans against FDs, gold loans, etc.
Written by Amit Madnani
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