Multibagger stock is up 365% from 52-week-low, declares 1:5 stock split

With a market valuation of ₹106.72 Cr, Comfort Fincap Ltd. is a small-cap business that operates in the financial services industry. A Non-Banking Finance Company (NBFC), Comfort Fincap Limited focuses largely on offering various loan products and other financial services related to the stock and commodity markets. The company also announced a corporate action of a 1:5 stock split along with its Q3FY23 results, which are as follows.

The company has said in a stock exchange filing that its Board of Directors has approved the “Proposal for alteration in the share capital of the Company by sub-division/split of the existing One (1) equity share of the Company having face value of Rs. 10/- (Rupees Ten only) each into Five (5) equity shares of face value of Rs. 2/- (Rupees Two only) each and subject to approval of the shareholders and such authorities as maybe required.”

Speaking on the rationale behind stock split, Board said the company is going to enhance the liquidity in the capital market, to widen its shareholder base and make the shares more affordable to small investors.

On a consolidated basis, Comfort Fincap declared net sales of ₹3.64 crore in Q3FY23, as compared to ₹3.18 Cr in Q3FY22, representing a growth of 14.46%. The company declared a net profit of ₹1.29 Cr in the quarter ended December 2022 as against ₹1.33 Cr recorded in the quarter ended December 2021, recording a fall of 3%. The company's consolidated EPS reached ₹1.19 in Q3FY23 as compared to ₹1.23 in the year-ago quarter.

On Friday, the shares of Comfort Fincap Ltd closed on the BSE at ₹98.35 apiece, down by 0.35% from the previous close of ₹98.70. The stock recorded a total volume of 53,537 shares compared to the 20-Day average volume of 70,358 shares. In the last 5 years, the stock has rallied 526% and in the last 3 years, it has generated a multibagger return of 1773%. In the last 1 year, the stock has generated a multibagger return of 194.78% and on a YTD basis, it has gained 10.44%. It has climbed by 91.16% over the past six months and by 8.73% over the past month. The stock touched a 52-week-high of ₹108.50 on (13/01/2023) and a 52-week-low of ₹21.15 on (29/03/2022), indicating that at the current market price, the stock is trading 9.35% below the 1 year high and 365.01% above the 1 year low.