Shares of this micro-cap company in the business of broking in securities surged over 10 percent on Tuesday morning after the company reported a 26 percent YoY increase in net profit, along with strong revenue growth in its latest quarterly results.
Price Action (WA:ACT)
During Tuesday’s trading session, BN Rathi Securities Ltd’s (BO:BNRA) share price reached an intra-day high of Rs.210.00 per share, rising 10.3 percent from the previous close of Rs.190.4 apiece.
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What Happened
B N Rathi Securities Ltd saw a strong surge in its stock price, driven by significant growth in both revenue and net profit for the latest quarter. For Q2 FY25, the company reported an 18 percent rise in revenue, reaching Rs.14.37 crore, up from Rs.12.19 crore in Q2 FY24. Sequentially, revenue grew by 5 percent from Rs.13.63 crore in Q1 FY25.
Net profit also saw a notable 26 percent increase, rising to Rs.3.98 crore in Q2 FY25 from Rs.3.16 crore in the same period last year, and up 14 percent from Rs.3.49 crore in Q1 FY25.
Regarding return ratios, the company recorded a return on capital employed (ROCE) of 28.5 percent and a return on equity (ROE) of 19.8 percent. It also has a low price-to-equity ratio of 16.4 and no debt, with a debt-to-equity ratio of zero.
B N Rathi Securities has a market capitalization of around Rs. 215 crore and assets under management (AUM) of Rs. 204.78 crore.
Services Offered
B N Rathi Securities offers a range of services, including equity trading on major exchanges like NSE and BSE, as well as opportunities for trading in futures and options (F&O). The company also facilitates investments in mutual funds and initial public offerings (IPOs) and provides depository services as a participant with Central Depository Services Limited (CDSL (NS:CENA)).
Growth Metrics
B N Rathi Securities has reported a compounded annual growth rate (CAGR) of 53.5 percent in profits over the last five years. The company recently declared a dividend of 15 percent, resulting in a dividend yield of approximately 0.79 percent.
The company serves over 40,000 clients and manages more than 60,000 accounts as a depository participant.
About the company
B N Rathi Securities Ltd, established in 1985, is a publicly listed stock broking firm headquartered in India. The company provides a diverse range of financial services, such as equity trading, futures and options, mutual funds, and IPO facilitation.
Written by – Siddesh S Raskar
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