Amid Monday’s sharp rally in the stock market, financial company SBFC Finance’s share price soared. By the close, this pace had increased to the 20% level. With this strong rally, the stock price crossed Rs 105. In fact, the rise in share prices of this small-cap financial stock (SBFC Share) came on the back of news from credit rating agency ICRA. Let us know what happened to cause the stock to rise rapidly.
Share price crosses Rs 105
Shares of SBFC Finance Ltd (SBFC Finance Ltd Share) opened trading at Rs 93.31 in the stock market. After that, as the business progressed, the speed became faster. In the last hour of trading, it reached the level of Rs 105.72, a rise of 20%, and finally closed at Rs 105.69, a strong gain of 19.97%.
Strong momentum over the past month
SBFC shares rose 20% on Monday, reaching an all-time high. If we look at the past performance of this financial stock, SBFC’s share price rose by 30.58% in the last six months and in the latest one month, it rose from Rs 84.43 to Rs 105.72. In other words, the stock has gained 25.18% in one month. If we look at the stock’s velocity, it’s up over 20% in the past five days.
Why did the stock price suddenly rise by 20%?
Now if we talk about the reason for the rise in SBFC stock price on Monday, the reason can be attributed to the change in rating of the company by credit rating agency ICRA. In fact, Iqra has upgraded SBFC Finance’s bank financing to a “stable” outlook. After the good news came out, the company’s stock suddenly soared. Rating agency upgrades company’s Rs 2,100-crore long-term fund term loan to ‘AA-‘, outlook stable
This is higher than the previous “A+” rating, with a stable outlook. This indicates lower credit risk.
What does the company do?
Talking about the business of SBFC Finance, it is a well-known company in the financial world and belongs to NBFC. The company provides guaranteed loans to MSMEs and is also engaged in gold loans. In the last quarter of June, the company reported excellent quarterly results, according to which SBFC Finance Limited’s first-quarter net profit was Rs 790 million, a year-on-year growth of 68%. Judging from the company’s performance, many brokerages also gave its stock a “buy” rating.
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