Jhaveri Credits & Capital Faces Significant Volatility Amidst Strong Sales Growth

Jhaveri Credits & Capital, a microcap player in the finance and non-banking financial company (NBFC) sector, has experienced significant volatility today, hitting a new 52-week low of Rs. 162.5. This decline comes as the stock underperformed its sector by 1.19%. Currently, Jhaveri Credits is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend.
Over the past year, the stock has faced substantial challenges, with a staggering decline of 59.07%, contrasting sharply with the Sensex's positive performance of 6.15%. Despite this downturn, the company has reported positive results for the last three consecutive quarters, with net sales for the half-year reaching Rs. 6.02 crore, reflecting a remarkable growth of 267.07%. Additionally, the profit after tax (PAT) for the same period has increased by 75.71% to Rs. 2.46 crore.

The company's return on equity (ROE) stands at a modest 4.2%, and it is currently trading at a premium compared to its peers, with a price-to-book value of 1.7. As the market continues to evolve, Jhaveri Credits & Capital remains a focal point for those monitoring the finance sector.