On Tuesday the share price of the penny stock hit its upper circuit of 2 percent to Rs 30.25 from its previous close of Rs 29.66 after the promoter acquired a stake from the company.
According to the Motor and General Finance Limited filing, the company’s promoter Ram Prakash and Co Private Limited has acquired through an off-market purchase of 55,676 equity shares which is 0.144 percent of the company.
Post-acquisition the promoter holds a total of 25,50,812 equity shares or 6.5 percent of the company.
According to the Motor and General Finance Limited report, the net revenue increased by 12.5 percent year over year, from Rs 1.36 crore in Q2FY23 to Rs 1.53 crore in Q2FY24. Their revenue fell by 2.6 percent sequentially from Rs 1.49 crore in Q1FY24 to the current levels.
In addition, the company’s net loss rose by 200 percent year over year, from Rs 0.1 crores in Q2FY23 to Rs 0.3 crores in Q2FY24. Motor and General Finance Limited is a penny stock with a market capitalization of Rs 115 crores.
The company’s promoters hold a 69.03 percent share in the company, 28.30 percent held by the general public, the international institutional investors hold 2.66 percent and the local institutional investors hold 0.01 percent.
Motor and General Finance Limited’s share price has risen by 15 percent in the last year and by 2.25 percent in six months. The company has a low debt-to-equity ratio of 0.04 and is almost debt-free.
Motor & General Finance Ltd, founded in 1930, is in the rental/leasing of immovable property business. MGF Group’s flagship company is MGFL. It offers commercial vehicle leasing, purchase, and financing.
Written by Sriram KV
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