Shares MAS Financial Services Ltd rose sharply in Thursday's trade after the non-banking financial company (NBFC) reported a 22.50 per cent jump in its fourth-quarter (Q4 FY24) standalone profit and received fundraising approval from its Board. The stock today surged 11 per cent to hit a high of Rs 331. It was last seen trading at Rs 6.67 per cent higher at Rs 318.10.
Profit after tax (PAT) came at Rs 58.05 crore for the quarter ended March 31, 2024, from Rs 55.55 crore in the year-ago period. The shadow lender's assets under management (AUM) rose 25.12 per cent to Rs 10,125.51 crore in Q4 FY24 as against Rs 8,092.56 crore in the corresponding period last year.
"The MSME segment contributed to around 60 per cent in the YoY (year-on-year) AUM growth of the company while other products also contributed meaningfully," MAS Financial stated.
"As we usher in to the next phase, post reaching an important milestone of Rs 10,000 crore in AUM, we are confident to maintain a fundamentally strong growth momentum. Adequate capitalization, strong asset quality and a track record of more than 25 years to navigate across various cycles will ensure the same thus creating value on a large scale for all its stakeholders," said Kamlesh Gandhi - Founder, Chairman & Managing Director at MAS Financial.
"The company has paid the interim dividend of Rs 3 per share - pre bonus - (Re 1 ex-bonus). Additionally, the Board has proposed the final dividend @ 5.10 per cent i.e. 51 paise per share," MAS Fin mentioned.
Further, the company's Board of directors has approved the borrowings of funds by way of issuance of secured/unsecured non–convertible debentures and commercial papers up to an aggregate amount of Rs 1,500 crore and Rs 500 crore, respectively, in one or more tranches through private placement basis.
An analyst suggested that the stock ongoing upside move in the share price is likely to continue in the near term. "The strong upside momentum can further extend. Possible upside targets for MAS Financial's stock would be Rs 340-350 levels. Stop loss will be at Rs 318," Rajesh Palviya, Head Technical Research at Axis Securities, told Business Today TV.