Rekha Jhunjhunwala Portfolio Update:
In a remarkable turn of events, shares of Geojit Financial Services saw a significant uptick of nearly 5 percent in early trading today, primarily driven by the anticipation surrounding its upcoming rights issue. However, as the day progressed, profit booking set in, leading to a decline of more than 7 percent from its intra-day highs. Currently, Geojit’s stock is trading down by 6.85 percent on the Bombay Stock Exchange (BSE), priced at Rs 157.65. Earlier in the day, the stock peaked at Rs 177, marking a new record high, but subsequently fell by 7.71 percent from this point to reach Rs 156.20. Notably, this stock holds a place in Rekha Jhunjhunwala’s portfolio, where she possesses 1.72 crore shares, representing a substantial 7.2 percent stake in the company.
Details of Geojit Financial’s Rights Issue
Geojit Financial is gearing up to launch a rights issue, with the rights issue committee scheduled to convene on September 19. This crucial meeting will determine key details such as the issue price and the rights entitlement ratio. Back on July 13, the company’s board had given the green light for the issuance of shares through this rights issue, which is expected to raise up to Rs 200 crore. The upcoming rights issue is anticipated to enhance the capital base of Geojit and facilitate further growth opportunities.
Business Performance Overview
Geojit Financial Services operates in the competitive brokerage sector, and its financial performance showcases impressive growth. For the first quarter of the FY 2025 (April-June 2024), the company reported a remarkable 107 percent year-on-year increase in net profit, amounting to Rs 45.81 crore. This positive trend continued with a 56 percent surge in consolidated revenue, reaching Rs 181.18 crore. The company’s assets under management (AUM) have also experienced significant growth, increasing to Rs 1.03 lakh crore, while its client base has expanded to 14.1 lakh individuals.
Stock Performance and Investor Gains
A closer look at Geojit’s stock performance reveals substantial returns for its investors. Last year, on September 22, 2023, the stock hit a low of Rs 50.16. Since that point, it has surged an impressive 253 percent, reaching its record high of Rs 177.00 as of September 17, 2024. Such dramatic growth underscores the positive sentiment around the stock and the effectiveness of the company’s strategic initiatives.
Summary Table
| Metric | Value |
|---|---|
| Current Share Price | Rs 157.65 |
| Intra-day High | Rs 177.00 |
| 1-Year Low (Sept 22, 2023) | Rs 50.16 |
| Net Profit (Q1 FY 2025) | Rs 45.81 crore |
| Consolidated Revenue (Q1 FY 2025) | Rs 181.18 crore |
| Assets Under Management | Rs 1.03 lakh crore |
| Client Base | 14.1 lakh |
| Rekha Jhunjhunwala’s Stake | 7.2% (1.72 crore shares) |
In conclusion, Geojit Financial Services is not only navigating a critical phase with its rights issue but is also showcasing robust growth, making it a significant player in the brokerage industry. The impressive stock performance and Rekha Jhunjhunwala’s substantial investment reflect the confidence in the company’s future prospects.
