PMC Fincorp Ltd., established in 1985, is a diversified financial services company based in India. It operates in various sectors including corporate and personal finance, debt syndication, and investment in the stock market. The company went public in 1988 and has since been involved in providing a range of financial products and services.
Company Fundamentals
Market Capitalization: As of November 2024, PMC Fincorp has a market cap of approximately ₹236 crore Current Share Price: The share price is currently around ₹5.14, with a 52-week high of ₹5.25 and a low of ₹1.87
- P/E Ratio: 17.87
- Price/Sales Ratio: 7.83
- Price to Book Ratio: 2.44
- Return on Equity (ROE): 11.6%
Recent Developments
- Rights Issue Announcement: In September 2024, PMC Fincorp proposed a rights issue to raise funds by offering up to 17,80,20,400 equity shares at an issue price of ₹2.75 eachThis move aims to strengthen its capital base.
- Financial Results: The company has consistently reported strong quarterly results, with the latest audited results showing significant profit growth compared to previous years
- Stock Performance: Over the past three years, the stock has provided a return of approximately 171.96%, outperforming the Nifty Smallcap 100 index which returned about 63.27% during the same period
Share Price Target Projections (2024 – 2030)
Given the company’s robust fundamentals and recent developments, analysts are optimistic about PMC Fincorp’s share price trajectory over the next few years:
- Short-term (2024): With ongoing initiatives such as the rights issue and strong revenue growth, targets may range from ₹6 to ₹8 by the end of 2024.
- Medium-term (2025 – 2027): Assuming continued revenue growth and effective management strategies, targets could rise to between ₹10 and ₹15 by 2027.
- Long-term (2028 – 2030): If the company maintains its growth trajectory and expands its market share effectively, share prices could potentially reach ₹20 or higher by 2030.
Risks and Considerations
While PMC Fincorp shows promising growth potential, investors should consider several risks:
- Market Volatility: The stock is noted to be highly volatile compared to the Nifty index, which can lead to significant fluctuations in share price.
- Low Promoter Holding: The promoter holding stands at only 20.1%, which may raise concerns about control and governance within the company
- Economic Factors: Broader economic conditions affecting the financial services sector could impact performance.
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