Multibagger NBFC Stock Emerald Finance Hits Upper Circuit for Second Day After Impressive Q2 2024 Results

Emerald Finance Ltd, a non-banking financial company (NBFC), saw its share price hit the upper circuit for the second day in a row after announcing its strong Q2 2024 results. On Thursday, the stock gained 5% during intraday trading, reaching ₹76.46 on the BSE, up from its previous close of ₹74.97. This was also the highest price the stock could trade at for the day.

The share price has been on a steady rise since October 3, 2024, gaining more than 10% in just a few days. Over the past year, Emerald Finance’s stock has delivered multibagger returns, increasing nearly five times (about 400%).

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The company’s financial results for the July-September 2024 quarter (Q2 FY25) boosted investor confidence. Emerald Finance reported a consolidated net profit of ₹2.06 crore for the quarter, up 138.97% compared to the same period last year. Its standalone net profit also grew by 89.96% year-on-year.

Emerald Finance’s total consolidated income for the quarter was ₹5.01 crore, marking an 80.32% increase from the previous year. The company’s EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) rose by 155.54% to ₹3.51 crore, with EBITDA margins improving significantly to 70.01% from 49.41% in Q2 2023.

The company attributes this strong performance to its well-executed growth plan, focusing on expanding its retail lending and MSME financing portfolios. Managing Director Sanjay Aggarwal expressed confidence in the company’s ability to penetrate new markets and serve more customers, highlighting the impressive year-on-year growth in total income, EBITDA, and profit.