Multibagger stock under Rs 100: Heavy buying witnessed in this small-cap stock, as the company opened 7 new branches in Rajasthan!

The stock gave multibagger returns of 153 per cent in 3 years and over 580 per cent in 5 years.

TruCap Finance Ltd. (BSE: 540268, NSE: TRU), focused on micro, small, and medium enterprises (MSMEs), has been investing to build a formidable distribution ecosystem by setting up Dhanvarsha branches in a cluster-based approach. The company opened 31 branches in the first quarter of this fiscal year (operating as brand Dhanvarsha – powered by TRU), including 7 new branches in Rajasthan, marking its entry in the state.

This takes the total branch count to 103 branches at the end of the quarter. The company has its presence in the States of Maharashtra, Madhya Pradesh, Gujarat, Goa, Delhi NCR, Punjab, and now Rajasthan. More than 75 per cent of its branch presence is in tier 2/tier 3/tier 4 towns

As a leading non-banking finance company (NBFC) focused on micro, small, and medium enterprises (MSMEs), TruCap has disbursed Rs 261 crore in the quarter ended June 2023, compared to Rs 237 crore in March 2023 and Rs 164 crore in June 2022. This translates to an asset under management (AUM) in excess of Rs 650 crore with over 65,000 active borrowers. Cumulatively, the company has disbursed Rs 2,080 crore to more than 190,000 borrowers over the last five years.

The company adopted a strategic roadmap in August 2021 to prioritize co-lending and BC partnerships with large lenders in Lending as a Service (L-a-a-S) to make the balance sheet capital efficient and more profitable. In L-a-a-S, TruCap has partnered with HDFC Bank, DCB Bank, Central Bank of India, Shivalik Small Finance Bank, and UGRO Capital. The share of loan-book attributed to L-a-a-S Partnerships has risen from 1 per cent in FY22 to over 30 per cent on June 2023.

TruCap caters to the financing needs of MSMEs. The company's objective is to empower these enterprises by providing them with the necessary financial resources to grow and thrive. The shares of the company saw a spurt in volume by more than 1.10 times on BSE.

On Wednesday, shares of TruCap surged 4.23 per cent to Rs 51.75 per share with an intraday high of Rs 52.75 and an intraday low of Rs 50.10. The stock gave multibagger returns of 153 per cent in 3 years and over 580 per cent in 5 years. Investors should keep an eye on this small-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.