Micro Cap Stock Soars 5% After Haryana Capfin Ltd Reports 133% YoY Surge in Q4 Net Profit
Micro Cap Stock: In a promising development for investors in micro-cap stocks, Haryana Capfin Ltd, a non-banking financial company (NBFC) specializing in investment and financing, witnessed its stock price climb up to 5% following the announcement of its Q4 FY25 results. The company reported a 133% year-on-year (YoY) jump in net profit, signaling strong financial performance and solid operational growth.
On Friday, the company’s shares surged to an intraday high of ₹199.50 per share, up from the previous close of ₹190, reflecting increased investor confidence. The company currently holds a market capitalization of ₹99.04 crore, reaffirming its micro-cap status.
Q4 Results at a Glance
Haryana Capfin’s financial results for the fourth quarter of FY25 showcased significant improvements across multiple metrics:
- Revenue from Operations grew 25% YoY, increasing from ₹0.36 crore in Q4FY24 to ₹0.45 crore in Q4FY25. However, it witnessed a 10% decline quarter-on-quarter (QoQ) from ₹0.50 crore in Q3FY25.
- Net Profit more than doubled, recording a 133% YoY increase from ₹0.12 crore in Q4FY24 to ₹0.28 crore in Q4FY25. On a QoQ basis, it saw a 17% rise, up from ₹0.24 crore in the previous quarter.
- Earnings Per Share (EPS) for the quarter came in at ₹0.54, up from ₹0.46 in Q3FY25.
Financial Ratios and Valuation Metrics
Here’s a comprehensive look at the financial ratios that highlight Haryana Capfin Ltd’s performance and market standing:
| Metric | Value |
|---|---|
| Market Cap | ₹99.0 Cr |
| Current Price | ₹190 |
| 52-Week High / Low | ₹448 / ₹0.00 |
| Stock P/E | 19.0 |
| Industry P/E Average | 33.19 |
| PEG Ratio | 0.25 |
| Book Value | ₹648 |
| Dividend Yield | 0.00% |
| ROCE (Return on Capital Employed) | 1.88% |
| ROE (Return on Equity) | 1.41% |
| Face Value | ₹10.0 |
| Net NPA | <2% |
| Promoter Holding | >65% |
| Debt Status | Debt-Free |
Key Highlights
- Undervalued Gem: With a P/E ratio of 19.0, significantly lower than the industry average of 33.19, Haryana Capfin appears to be undervalued, making it an attractive pick for value investors.
- Healthy PEG Ratio: The PEG ratio of 0.25 suggests that the stock’s price is growing at a slower rate than its earnings, pointing toward future upside potential.
- Strong Promoter Confidence: The promoter holding of over 65% indicates a strong commitment from the promoters and signals trust in the company’s long-term vision.
- Debt-Free Status: The company maintains a debt-free balance sheet, which strengthens its financial resilience and ability to weather economic fluctuations.
- Low Credit Risk: With Net NPA below 2%, Haryana Capfin demonstrates excellent asset quality and prudent credit risk management.
About Haryana Capfin Ltd
Haryana Capfin Ltd is a registered NBFC operating primarily as a holding company. It holds investments in subsidiaries and associates engaged in financial services, including financing and investment in shares and securities. The company focuses on a single segment—investment and financing, giving it a streamlined and focused business model.
Despite its small size, the firm’s robust financials and stable management have enabled it to maintain resilience in a volatile market.
Market Sentiment & Outlook
The 5% jump in Haryana Capfin’s share price following the Q4 earnings announcement is a clear indicator of positive investor sentiment. The sharp rise in net profits and solid financial ratios suggest that the company is well-positioned for future growth. With no debt on the books, improving profitability, and low credit risk, the stock could attract attention from retail and institutional investors alike.
Given its low market capitalization, even small improvements in business fundamentals can lead to significant upside in share price. However, micro-cap stocks also tend to be more volatile, so potential investors should conduct due diligence before investing.
Q&A Section: Simplifying the Key Points
Q1: Why did Haryana Capfin’s stock price rise by 5%?
A: The stock jumped after the company reported a 133% increase in YoY net profit for Q4FY25, signaling strong financial performance.
Q2: What does Haryana Capfin Ltd do?
A: It is a non-banking financial company (NBFC) involved in financing and investing in shares and securities, operating as a holding company.
Q3: Is the company profitable?
A: Yes. It posted a net profit of ₹0.28 crore in Q4FY25, with consistent profitability and increasing EPS.
Q4: Is Haryana Capfin an undervalued stock?
A: With a P/E ratio of 19.0 (lower than the industry average of 33.19) and a PEG ratio of 0.25, it may be undervalued, especially for long-term investors.
Q5: Is the company financially sound?
A: Yes. It is debt-free, has low NPAs (<2%), and strong promoter holding, which indicates sound financial health.
Q6: What should investors watch out for?
A: Being a micro-cap stock, it may experience high volatility. Investors should monitor revenue growth and maintain a long-term outlook.
Conclusion
Haryana Capfin Ltd’s stellar Q4 performance has not only lifted investor sentiment but also positioned the stock as an emerging micro-cap gem. With improving fundamentals and prudent financial management, this may be a good time for investors to start tracking the stock for potential gains.
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