Stanrose Mafatlal in the limelight

Stanrose Mafatlal Investments and Finance, formerly known as Sandeep Holdings Limited is a NBFC, primarily engaged in the business of Inter-corporate investments, financing and capital market related activities. Today, it is a part of the Standard Industries group while earlier, when it began, it was a subsidiary of the Mafatlal Industries.

This stock today briefly breached the 20% upper circuit at Rs.153.10 and since then come down to Rs.147 levels, still up 15%. Its 52-week high is at Rs.167.90.

The reason for this euphoria on the counter is the very good numbers it posted for Q1FY17. This debt free company, on a 125% (YoY) jump in net sales at Rss.5 crore, posted a 169% increase in net profit at Rs.3.55. EBITDA came in at Rs.4 crore, up 100% and margins, which are very robust, came in at 82% v/s 71% (YoY).

Once again, typical of these olden times companies, its equity is tiny at Rs.3.97 crore and reserve is at Rs.49 crore. Promoters hold a 48.37% stake and insurance companies – LIC, GIC, New India, all together hold a 10% stake.