Shares of SBFC Finance jumped over 18 percent to hit an all-time high of Rs 104.35 per share on September 23 after credit ratings agency ICRA upgraded its bank facilities with a 'stable' outlook.
The uptick also comes amid huge spurt in volumes. Around 7 crore equity shares exchanged hands on both BSE and NSE intra-day deals, significantly exceeding one-week average of 37 lakh equity shares.
In a recent exchange filing, ICRA upgraded SBFC Finance's long-term, fund-based term loan of Rs 2,100 crore to 'AA-' with a stable outlook, up from the previous rating of 'A+' with a stable outlook. Additionally, the ratings agency upgraded and withdrew the company's long-term, unallocated fund-based bank lines worth Rs 1,400 crore to the same 'AA-' stable rating from 'A+' stable.
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An 'AA-' rating from ICRA signifies that the issuer carries very low credit risk and provides a high level of confidence in its ability to meet financial commitments on time.
In the June-ended quarter, SBFC Finance's net profit increased by 68 percent year-on-year to Rs 79 crore, as against Rs 47 crore in the year-ago period. The company's revenue from operations also rose by 30 percent YoY to Rs 298 crore in Q1FY25 from Rs 229 crore in the year-ago period.
SBFC Finance is a non-deposit-taking NBFC, catering primarily to entrepreneurs, small business owners, self-employed individuals, and salaried or working-class customers. The company offers services through secured MSME loans and loans backed by gold.
Currently, around 4 brokerages cover SBFC Finance stock, with 3 suggesting a 'buy' rating and 1 recommended a 'hold' call. Over the past one year, shares of SBFC Finance surged over 19 percent, underperforming benchmark Nifty 50's 31 percent rise.
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