A micro-cap stock surged 2 percent following the announcement of a record date for its 1:10 stock split. This move is expected to increase liquidity and broaden the stock’s appeal to a wider range of investors, reflecting the company’s commitment to enhancing shareholder value.
Price Variation
During Tuesday’s trading session, shares of Akme Fintrade India Ltd jumped to an intraday peak of Rs.66.69 each, reflecting a 2 percent increase from the prior closing price of Rs.65.26 per share. However, the stock retreated later and is currently trading at Rs.66.10 apiece.
Record Date
The Board of Directors of Akme Fintrade Ltd have set the ‘Record Date’ as April 18, 2025, for the proposed sub-division/split of its equity shares. Under this plan, each fully paid-up equity share with a face value of Rs.10 will be divided into 10 new equity shares, each having a face value of Rs.1.
This move is designed to enhance liquidity, make the shares more accessible to a broader range of investors, and align with the company’s strategy to boost shareholder value and market participation.
Operational Highlights
In Q3 FY25, the company reported an Assets Under Management (AUM) of Rs.523.38 crore, reflecting a 33.49 percent year-on-year growth. During the first nine months of FY25, a total of Rs.145.30 crore was disbursed, with Rs.50.08 crore in disbursements made in Q3 FY25 alone. Additionally, 8,786 new loans were issued in the same period. The company’s net worth stands at Rs.360.81 crore, highlighting its strong financial position.
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Asset Quality
In the first nine months of FY25, the company reported gross Stage 3 assets at 2.86 percent, indicating the proportion of non-performing or doubtful loans relative to total assets. Net Stage 3 assets stood at 1.27 percent, reflecting the value of these assets after accounting for provisions or write-offs.
The credit cost to average total assets for FY25 was 0.11 percent, highlighting the cost of bad debts as a small percentage of total assets, which suggests effective risk management. Additionally, the provision coverage ratio of 55.57 percent shows that the company has set aside more than half of the required provisions to cover potential loan losses, ensuring financial security against defaults.
Financial Overview
According to its recent financial updates, Akme Fintrade (India) Ltd reported consolidated revenue of Rs.28.07 crores in Q3 FY25, marking a 41 percent increase from Rs.19.87 crores in Q3 FY24. Similarly, the company saw a 59 percent incline in net profit to Rs.8.93 crores, compared to Rs.5.60 crores in the same period.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 11.58 percent and a Return on Equity (ROE) of 8.02 percent. Its Price-to-Earnings (P/E) ratio stands at 8.72, lower than the industry average of 31.31.
Written by – Siddesh S Raskar
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