- Date : 07/08/2022
- Read: 3 mins
Star Housing Finance surges 85% YTD.
The year 2022 has been volatile for the stock markets. The high inflation is leading to higher interest rates. Central Banks globally have started hiking interest rates in response to the high inflation. This is putting pressure on the stock prices of various companies.
But in this volatility, some stocks are performing better than others. This housing finance company is on an uptrend. Its YTD returns are a massive 85%. This exceptional performance by the stock has generated interest amongst the investors. The stock has been a multibagger in the past, with a return of 900% in the last 7 years. It's a small cap company with a market capitalization of only 266 crores.
Returns of Star Housing Finance
The stock price of this company has performed really well on the bourses. The stock has risen from ₹130 to ₹160 in the last month, registering a return of 22%. The stock price has increased from ₹95.5 to ₹160 in the last six months, which is a return of 65%. As far as the YTD return is concerned, this stock has increased from ₹87 to ₹160, which is a return of almost 85%. In the last year, the stock has increased from ₹93.5 to ₹160, which is a return of almost 70%. In the last five years, the stock has given a return of 135%.
Similarly, in the last seven years, the stock price has increased from ₹16 in March 2015 to ₹160, which is a return of almost 900%. This stock has been a multibagger in the long term and is performing well recently as well.
Why is Star Housing stock increasing?
The reason for the increase in the stock price is due to the issue of preferential shares of ₹21.6 crores to various shareholders from the BFSI space. The preferential shares of the company were allocated at a price of ₹135 per share. This improves the capital situation of the company, and the net worth has surged to ₹85 crores. The fundraising will help the company to increase its market share in rural geographies and will help the company to scale up its operations in the future. The current market capitalization of the company is ₹266 crores.
The stock price of Star housing finance has been increasing for almost seven years now. This small-cap company has been a good investment in the past. The past returns are no guarantee of future returns, but in the investment world, if the past returns are good, there is a good probability of high returns in the future as well. The company has a market capitalization of only ₹266 crores, and it is a small-cap company. With the fundraising in place, there is a good probability of high returns on the capital in the future because of the growth in the rural geographies as per the management of the company.
Star Housing Finance Ltd l Star Housing Finance Ltd Q1 Results l Star Housing Finance Ltd Q1FY23
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.