Shares of this private-sector NBFC stock under the ‘small-cap’ category zoomed nearly 16 percent in Monday’s trading session after Quant Mutual Fund bought 6 lakh shares in the company via a Bulk Deal. In the past month, the company’s stock has delivered whopping returns of 93 percent to its stakeholders.
With a market capitalization of Rs 2,195.15 crores, the stocks of Tourism Finance Corporation of India Limited opened their trading session on Monday at Rs 214.70 and currently trade at Rs 242.90.
The company’s scrip witnessed an intra-day high, also marked as the new 52-week high price, of Rs 247 exhibiting a gain of around 16 percent compared to the previous close of Rs 209.05 apiece. Such a spike in the share price is observed after a deal took place in the company.
As per the ‘Bulk Deal’ data available with the National Stock Exchange (NSE), Quant Mutual Fund, one of the oldest and pioneering Mutual Funds in India, bought 6 lakh equity shares of Tourism Finance Corporation of India Limited on 2nd February 2024 at an average trade price of Rs 208.57 per equity share.
During the recent financial quarters, the company’s standalone financial reports show a dip in numbers as far as the operating revenues and net profits are concerned. The former reduced marginally from Rs 59 crores during Q1FY24 to Rs 57 crores during Q2FY24, and the latter, keeping the timeframe the same, shifted down from Rs 24 crores to Rs 18 crores.
During FY22-23, the company reported decent return ratios with the return on equity (RoE) reported at 8.64 percent and the return on capital employed (RoCE) at 14.36 percent. Moreover, the company reported an increase in its margins with the net profit margin (NPM) rising from 33.56 percent during FY21-22 to 37.99 percent during FY22-23.
Keeping a purview of six months, the company’s stock has delivered multibagger returns of nearly 150 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock six months ago, it would have converted to Rs 2.50 lakhs.
Incorporated in 1989, Tourism Finance Corporation of India Limited is engaged in the business of providing financial assistance to tourism, social infrastructure, manufacturing, and other sectors in India. The company offers rupee term loans, corporate loans, and debentures/equity to the tourism sector comprising hotels, resorts, and other sectors.
Written by Amit Madnani
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