Three reasons why Centrum Capital should be on your favorite watch list!
Centrum Capital is one shining star in this beleaguered sector that is showing a lot of promise in 2021. The stock is up by 196 per cent already in 2021 while in past one month the stock is up by nearly 31 percent.
NBFC sector within the financials has been marred with myriad issues even before the pandemic hit us. With the advent of the current pandemic, financials have suffered the most as the fundamentals have been impacted the most for this sector.
Centrum Capital is one shining star, however, in this beleaguered sector that is showing a lot of promise in 2021. The stock is up by 196 per cent already in 2021 while in past one month the stock is up by nearly 31 percent.
Following are the three reasons why investors should have this stock on their favorite watch list:-
1. Positive update: The RBI has issued an In-principle approval to Centrum Financial Services Limited (Centrum), the established and profitable NBFC arm of the Centrum Group, to establish a Small Finance Bank (SFB). Resilient Innovations Private Limited (BharatPe), one of India's fastest growing fintech companies, will be an equal partner. The new SFB can be expected to scale up quickly from the existing capabilities of the NBFC, Fintech abilities, digital reach and technology advantage. The new SFB is expected to be guided by the directions and timelines of the RBI on the amalgamation of Punjab & Maharashtra Co-Operative Bank Limited (PMC). PMC will be part of the newly formed bank and it will not be a takeover.
2. Strong Leadership: - Investors can take solace from the fact that Centrum Capital is led by Jaspal Bindra who is a trusted name in the financial sector.
3. Strong momentum and technicals:- Centrum Capital made a fresh 52-week high for itself on Friday and has given a nice breakout from important resistance levels with heavy volumes. Except in February, Centrum has gained on all the months in 2021. The stock gained 40.88 per cent in Jan, Feb it was down by 0.41 per cent, March the stock soared by 14.43, April it zoomed by 7.22 per cent, May the stock strengthened up by 19.44 per cent and in June Centrum Capital is up by nearly 38 per cent already.
Centrum Group Founded in 1997, Centrum has diversified fee businesses and a lending platform for institutions and individuals. Institutional services include Investment Banking, Mid-corporates & SME credit and Broking to FIIs, Pension Funds, Indian Mutual Funds, Domestic Institutions etc. It also provides MSME credit, Wealth Management Services to HNIs and Family Offices, Affordable Housing finance in tier 2 & 3 cities, Micro Finance loans and Retail Broking.
About BharatPe : BharatPe was co-founded by Ashneer Grover and Shashvat Nakrani with the vision to make financial inclusion a reality for Indian merchants. In 2018, BharatPe launched India’s first UPI interoperable QR code, first zero MDR payment acceptance service, and first UPI payment backed merchant cash advance service Currently serving over 60 lakh merchants across 100 cities, the company is a leader in UPI offline transactions, processing 10 crores+ UPI transactions per month (annualized Transaction Processed Value of US$ 10+ Bn).