Ashika Credit Capital, a small-cap player in the finance and non-banking financial company (NBFC) sector, has recently received an upgraded stock call to ‘Hold’ by MarketsMOJO as of January 7, 2025. The company reported a significant financial performance for the second quarter of FY24-25, showcasing a remarkable 185.54% growth in operating profit. This positive trend is reflected in the company’s consistent results over the past five quarters.
In terms of specific figures, the profit before tax (PBT) less other income for the quarter stood at Rs 12.83 crore, marking a growth of 102.1%. Net sales for the half-year reached Rs 35.58 crore, while the profit after tax (PAT) for the quarter was reported at Rs 9.27 crore, up by 77.2%.
Despite these strong short-term results, Ashika Credit Capital exhibits weak long-term fundamental strength, with an average return on equity (ROE) of 10.52%. The stock is currently trading at a premium compared to its historical valuations, with a price-to-book ratio of 10. Over the past year, the stock has generated impressive returns of 1324.90%, although its long-term growth rates remain modest.
