From 33 to 800 in a year, this Small cap stock turned Multibagger

Share market is all about ups and downs and this time will talk about all ups and ups as one of the small cap stock from Indian financial Industry has rose 2434.59% in just one year. This is another NBFC Company (Non-Banking Financial company/Institutional) in the August 23^rd 2021, the share price of Ikab Securities and Investment limited was at 33 Rupees and today right after one year it is at 800 rupees. Surprisingly amazing, isn’t it?

Just a year ago if you had invested 1lakh rupees in Ikab Securities then your 1lakh rupees will became 24 lakhs and 34 thousand rupees. That’s the cost of BMW’s seven Series Car, can you imagine you could have afforded that luxury by just investing 1lakh rupees and you have to stay invested for just one year.

Reason for Gain: Stock market is very favorable to the company who makes profit we all know that, The main reason for tremendous gains in Ikab Securities is their Net profit. They have recorded more than double profit in last year as compared to the previous year, that’s the main cause of such a huge spike in the share price, Earlier stock got tumbled at lows due to COVID-19 and after the COVID more and more people started their stock market journey, that where this company has hit the bulls eye by acquiring new customers and managing their portfolios this leads to fill the gap in company’s net profit margin and generated significant amount of cash in reserves which will be used in expansions of the company and further acquisitions of new customers.

Way Forward for Ikab Securities and Investment limited: The current price of this stock is 800 rupees at the day closure of 23^rd August 2022, which is too high to take position in this stock, experts are recommending wait and watch for this stock and those who have already brought this stock they can stay invested for long term as this will give more returns in future. This stock is generating better returns of equity than the Bank FD. However, this stock doesn’t offer attractive dividend returns.

On the other hand, if we look at company’s financial data this stock is not in ASM/GSM lists and not a lot of promotors holding is pledged so we can consider this stock for fresh buying. Also, promoter has increased their holding in the company by 23.74% which is another good sign for new investors. Well if you want to make fresh position in this stock then you have to stay invested for long term as wonder takes times to happen or else there are many other stock options you can explore and small cap companies has high potential to become Multibegger as well as it has high risk of capital loss.

Always consider seeking advice from your financial advisor before you make any investment and always evaluate the risk of your investment.