This Penny stock which operates in the business of financing and investing hit 5 percent upper circuit intraday trade after the company announced a new platform that involves EV finance.
Price Action
With a market capitalization of Rs. 399.48 Crores, the shares of Mangalam Industrial Finance Limited were up by 4.8 percent in the day’s trade touching a day’s high of Rs. 3.69 per share. The stock reiterated from the day’s high and was trading at Rs. 3.68 per share which is 4.55 percent higher than the previous closing price of Rs. 3.52 apiece. The stock has delivered a negative return of 9.28 percent and has underperformed the Nifty Index in the past year.
What Happened
The company had announced a platform launch named “CloudBankin”. This platform streamlines the loan application process. It minimizes the paperwork and enables faster approvals. It is beneficial for the customers as they can now apply for loans online, track their application process in real-time, and can make repayments easily through the platform. While expanding its offerings with Electric Vehicle Loans as part of its vision to support green mobility, the MIFL has introduced Electric Vehicle Loans for two-wheelers and three-wheelers through the CloudBankin platform.
Management Commentary
Venkata Ramana Revuru, Chairman and Managing Director said “We are thrilled to announce the launch of ‘CloudBankin,’ our innovative digital lending platform. CloudBankin will offer a seamless and convenient platform for individuals and businesses to access a range of financial solutions. We believe this platform will not only streamline our operations but also empower customers with greater financial freedom and contribute to the growth of sustainable transportation.
Arun Pillai, Chief Financial Officer said “ The launch of CloudBankin is a testament to our commitment to innovation and customercentricity. We are confident that CloudBankin will enable us to expand our customer base and further strengthen our position as a leading
NBFC in the market. We are particularly excited about the inclusion of Electric Vehicle Loans, which aligns with our commitment to sustainable development and supports the government’s vision for a greener future.
About the Company
Mangalam Industrial Finance Limited was established in 1983. It is an India-based non-banking finance company (NBFC) focused on providing financial solutions primarily for electric two-wheeler purchases. They offer a range of loans, including personal, business, and professional loans while catering to various customer needs. Their business model focuses on hassle-free loan processing with flexible tenures, targeting both individual and small business clients. Registered with the Reserve Bank of India, Mangalam aims to support growth in the electric vehicle sector while also engaging in investments and trading in shares and securities.
Financials & Ratios
The company’s Interest Income increased by 40 percent year on year from Rs. 0.64 Crores in Q2FY24 to Rs. 0.90 Crores in Q2FY25, accompanied by a loss of Rs. 0.59 Crores to a profit of Rs. 0.41 Crores.
In terms of Return ratios, the company has a return on on equity (RoE) stood at 0.59 percent. The net profit margin stood at 0.07 percent and the return on assets ratio stood at 0.65 percent as of FY24.
Shareholding Pattern
As of September 2024, the shareholding pattern with the promoter’s stake holding a share of 69.11 percent in Mangalam Industrial Finance, and public holdings standing at 30.89 percent.
Written by Santhosh S
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