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This NBFC stock turned Rs 1 lakh into Rs 8 lakh in 6 months, did you miss the rally?

The NBFC share has risen 777% since March 13 this year

Aseem Thapliyal | September 16, 2020 | Updated 09:20 IST
This NBFC stock turned Rs 1 lakh into Rs 8 lakh in 6 months, did you miss the rally?
Saraswati Commercial share price has risen from Rs 96.20 on March 13 to Rs 844.20 on September 15 this year

Saraswati Commercial (India) share has delivered strong returns for its investors in last six months. The stock of the non-banking finance company (NBFC) has risen 777% since March 13 this year.  An amount of Rs 1,00,000 invested in the share on March 13 would have grown to Rs 8.77 lakh today. Saraswati Commercial share price has risen from Rs 96.20 on March 13 to Rs 844.20 on September 15 this year.

Saraswati Commercial share price has risen 1,258% during the last one year and gained 821% since the beginning of this year.

In three years, the share has gained 7,955%. In a month, the stock is up 42%. The microcap share trades higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.

Shares of its peers have lagged behind during last six  months. While stock of Bajaj Finance has fallen 11.15%,  share of Muthoot Finance has gained 41% during the period.  Share of Bajaj Holdings has lost 16% since March 13 this year.

Jhunjhunwala earned Rs 5.6 crore per day with this stock for 111 sessions

However, Saraswati Commercial share has been falling after scaling all-time high of Rs 1034 on September 8. It has lost 16.74% in last six sessions. The fall in the stock  can be attributed to a disclosure made by the company on September 9 which said it suffered a mark to market loss on March 31 which is expected to be recovered in the coming quarters.

The firm also said it did not face any operational or investment issues since the impact of Covid 19 pandemic was very limited. The stock opened with a loss of Rs 44.40 or 5% today, traded at same level through the session and closed unchanged on BSE today.

Market cap of the firm stood at Rs 84.50 crore on BSE.

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The meteoric rise in the price of stock in six months can be attributed to strong financial performance of the firm. In June quarter, net sales rose 1576% to Rs 8.38 crore against Rs 0.50 crore for the quarter ended March last fiscal.

Net profit climbed 163.50% to Rs 3.86 crore in Q1 against loss of Rs 6.08 crore in fourth quarter of last fiscal. On an year on year basis, the   NBFC  logged 6,346 % rise in sales to Rs 8.38 crore against Rs 0.13 crore in June quarter of last fiscal.

Similarly, net profit grew 349% to Rs 3.86 crore in Q1 against Rs 1.55 crore loss in corresponding quarter of previous fiscal. Saraswati Commercial (India) Limited is a non-banking financial company. The company is engaged in investment, trading in shares and securities and lending activities. The company invests in equity instruments, debentures or bonds, and mutual funds.

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