Investment of ₹10,000 in this stock in March 2020 would be made ₹97,500 now.
IFCI Limited provides non-banking financial services to the public sector in India. The company offers project finance for the electricity sector, such as renewable energy, telecommunications, roads, oil and gas, ports, airports, etc. It also provides corporate finance, offers syndication and advisory services, provides sales and default resolution services. assets, and offers stock trading, commodities, currency trading, portfolio management and deposit participation services.
The company was formerly known as Industrial Finance Corporation of India and changed its name to IFCI Limited in October 1999. IFCI Limited was founded in 1948 and is headquartered in New Delhi, India.
The stock has grown over 278 percent in the last 1 year and has gained 34 percent in 2024 YTD.
Currently trading at ₹39, the stock is nearly 46 percent off its 52-week high of ₹71.70, hit on February 8, 2024. Meanwhile, it gained more than 332 percent from its 52-week low of ₹9.03, hit March 28, 2023.
The stock has lost 12.6 percent in March so far after a 19.26 percent jump in February. Meanwhile, it also fell 5.3 percent in January this year.
The notable upward trend underlines the strong market interest and optimistic sentiment surrounding the stock, marking a record performance for the company within the current market conditions.
Revenues
In the December quarter (Q3FY24), the company posted a net loss of ₹10 crores against a profit of ₹83.7 crore in the September quarter. Meanwhile, its revenue in the December quarter came in at ₹214.7 crore, up 29.5 percent ₹165.8 crore in the previous quarter this year.
Brokerage view
According to ICICI Direct, the company has rising net cash flow and cash from operating activity. It is also effectively using its capital to generate profit – RoCE has improved in the last 2 years and at the same time is reducing debt, the brokerage noted.
Meanwhile, its weaknesses, according to the brokerage are –
– High interest payments compared to income
– Low Piotroski Score: Companies with weak finances
– Significant drop in net profit from Trailing 12 month (TTM).
Penny stocks, characterized by their low price and speculative nature, typically represent stocks of small companies traded at low volume. In India, these stocks are often priced less ₹10 and are known for their high volatility.
However, it is important to understand that penny stocks have inherent risks and may not be suitable for most investors. Among these risks are susceptibility to pump-and-dump schemes, liquidity challenges, and the potential for stock manipulation.
Despite these risks, penny stocks have gained some popularity among investors in India due to their affordable prices. Some investors view buying penny stocks as an opportunity to invest in small companies with significant growth potential over the long term.
However, investing in penny stocks carries significant risks. Therefore, investors should conduct thorough research and/or seek guidance from a financial advisor before considering any investment in penny stocks.
Disclaimer: This story is for educational purposes only. Please speak to an investment advisor before making any investment decisions.
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Published: 18 Mar 2024, 12:05 IST
(tagsTo Translate)IFCI