SBFC Finance witnessed a significant boost in its stock price after CARE Ratings upgraded the company's long-term fund-based term loan to 'AA-' with a stable outlook. This move saw the non-banking financial company's shares soar by 14.8% intraday, reaching an all-time high of Rs 101.15 on the BSE. By 10:01 AM, SBFC Finance's stock stood at Rs 99 per share, marking a 12.37% increase, while the BSE Sensex traded 307.01 points higher at 84,851.32.
CARE rating boost and financial growth
CARE Ratings upgraded SBFC Finance's Rs 2,100-crore long-term fund-based term loan from 'A+ stable' to 'AA-' stable. The Rs 1,400-crore unallocated bank facility also received an upgrade before being withdrawn. The improved credit rating reflects the company's financial stability and low credit risk, signalling a high degree of safety in servicing financial obligations.
SBFC Finance, a prominent non-deposit-taking NBFC, primarily caters to entrepreneurs, small business owners, and self-employed individuals through secured MSME loans and loans against gold. The company focuses on clients underserved by traditional banking institutions, offering tailored financial solutions to meet their unique needs. For those engaged in share market investment, the upgrade signifies a reliable opportunity for growth in SBFC's offerings and services.
Q1 results: Robust growth and profitability
In the first quarter ending June 30, 2024, SBFC Finance reported impressive financial results. The company's profit after tax (PAT) surged by 68% to Rs 79 crore, compared to Rs 47 crore in the same period last year. Additionally, revenue from operations rose by 29.7% to Rs 297.8 crore, showcasing the company's resilience and expanding business reach.
This growth has further reinforced the attractiveness of SBFC Finance in the share market investment arena, with investors capitalising on the company's upward trajectory.
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