Small-cap NBFC stock hits 20% upper circuit after Madhusudan Kela buys stake

SG Finserve share price hit a 20% upper circuit on Tuesday after ace investor Madhusudan Kela bought over 1% stake in the small-cap company. SG Finserve shares jumped as much as 20% to ₹432.65 apiece on the BSE.

The multibagger small-cap stock has seen a significant investment by the renowned investor. On March 24, Madhusudan Murlidhar Kela acquired 9,51,773 equity shares of SG Finserve, representing 1.7% stake in the company, according to BSE bulk deal data.

Kela purchased SG Finserve shares at ₹350.01 apiece, the data showed.

SG Finserve is an RBI-registered non-banking financial company (NBFC) that specialises in business financing solutions.

Credit Ratings

CRISIL Ratings has reaffirmed the credit rating for SG Finserve’s ₹1,000 crore bank loan facilities, the company informed in a regulatory filing on March 24.

The credit rating agency has assigned an AA (CE) / Positive rating, transitioning it from a provisional rating to a final one.

SG Finserve Q3 Results

SG Finserve reported a net profit of ₹23.69 crore in the third quarter of FY25, registering a significant growth from ₹14.12 crore in the previous quarter. The company’s revenue from operations in Q3FY25 increased to ₹42.49 crore from ₹30.9 crore, quarter-on-quarter (QoQ).

SG Finserve’s loan book in the December quarter stood at ₹1,568 crore, recording a 92% growth from the September quarter.

SG Finserve Stock Price Trend

SG Finserve share price has rallied 23% in one month, but the small-cap stock has fallen 1% on a year-to-date (YTD) basis. The NBFC stock has dropped 19% in six months and 4% in one year.

However, in the long term, SG Finserve shares have delivered multibagger returns, as the stock has jumped 960% in three years, and has surged by a staggering 14,500% in the past five years.

At 11:20 AM, SG Finserve shares were trading 14.20% higher at ₹411.75 apiece on the BSE.

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