SBFC Finance Share: Shares of small-cap non-banking finance company SBFC Finance Limited saw a strong rally on Monday. The company’s stock hit an upper circuit of 20% today and the stock reached a 52-year lifetime high of Rs 105.72. There is good news behind this rise in the shares. Actually, credit rating agency ICRA has given the company’s bank facilities outlook as ‘stable’, earlier it was ‘stable’. Let us tell you that the company’s IPO came last year at a price of ₹ 57. From this price till date, this stock has climbed by about 86%.
Brokerage Opinion
According to domestic brokerage firm Angel One, “SBFC has seen a massive surge during today’s session to come out of its bearish phase. This surge was supported by strong volumes, which indicates strength in the breakout. The Rs 96 area is likely to cap any downside, while the bullish gap is around Rs 92-89. It is set to continue its uptrend with occasional fluctuations in the near term.” According to Wealthmills Securities, the company’s stock can be bought for the long term. On the technical setup, immediate support on the counter can be seen at Rs 98. And resistance is at Rs 106 area.
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According to AR Ramachandran, SEBI-registered research analyst, “The stock price is in an uptrend but on the daily chart it is overbought with the next resistance at Rs 106. Investors should book profits at current levels as a daily close below the support of Rs 95 could give a downside target of Rs 89 in the near term.”
June quarter results
SBFC Finance reported a 68 per cent year-on-year rise in net profit in the quarter ended June. It reached ₹79 crore, as against ₹47 crore in the same period last year. The company’s revenue also grew 30 per cent year-on-year (YoY), from ₹229 crore in the same period last year to ₹298 crore in Q1FY25.