Jhunjhunwala portfolio: This brokerage's stock has zoomed 53% in 3 weeks

Shares of Geojit Financial Services hit a record high of Rs 154.60, after surging 14 per cent on the BSE in Tuesday's intra-day trade amid heavy volumes.

Shares of brokerage firm Geojit Financial Services hit a record high of Rs 154.60, surging 14 per cent on the BSE in Tuesday’s intra-day trade amid heavy volumes. The market price of the stock brokerage and allied services company are trading higher for the third straight day, having rallied 20 per cent during the period.

In the past three weeks, shares of the company have zoomed 53 per cent from the level of Rs 101.05 on August 13. Since April, thus far in the financial year 2024-25, the market price of the company has more than doubled, or skyrocketed 141 per cent.

At 11:44 AM, Geojit Financial Services was trading higher by 12 per cent at Rs 152.50, as compared to the 0.10 per cent decline in the BSE Sensex index.

The average trading volumes on the counter jumped nearly three-fold, with a combined 9.29 million equity shares, representing 3.9 per cent of the total equity of Geojit Financial Services, having changed hands on the NSE and BSE.

Investor Rekha Jhunjhunwala held 17.21 million shares, or a 7.2 per cent stake in Geojit Financial Services, at the end of the June 2024 quarter, the company's shareholding pattern data showed.

Besides Rekha Jhunjhunwala,  BNP Paribas, C J George, Founder and Managing Director of Geojit, and Kerala State Industrial Development Corporation (KSIDC), are the other prominent shareholders of the company.

As of June 30, 2024, the company’s assets under custody and management stood at Rs 1.03 trillion, and it had over 1.41 million clients.

Geojit’s board has also approved a proposal to raise an amount aggregating up to Rs 200 crore by way of issue of equity shares on rights issue basis to the eligible equity shareholders of the company. The record date for the fundraise will be disclosed later, the company said in an exchange filing.

Geojit Financial Services has an extensive presence in the Gulf Cooperation Council (GCC) region via joint ventures and partnerships, in the form of Barjeel Geojit Financial Services LLC in the UAE, BBK Geojit Business Consultancy and Information (KSCC) in Kuwait, and QBG Geojit Securities LLC in Oman. The company also has a presence in Bahrain through a business partnership with the Bank of Bahrain and Kuwait.

Geojit Financial Services is engaged in the business of retail and institutional broking and distribution of financial products.

The company reported a 107 per cent year-on-year (YoY) increase in net profit at Rs 45.81 crore, in the April to June quarter (Q1FY25). In the corresponding quarter of last year, the company had reported a net profit of Rs 22.08 crore.

Meanwhile, consolidated revenue for the quarter grew 56 per cent YoY to Rs 181.18 crore, from Rs 115.98 crore in Q1FY24.

Geojit Financial Services said the company is poised for continued growth by leveraging a hybrid model that offers a competitive edge in the market. With an extensive offline platform spanning tier II and tier III cities, Geojit provides a one-stop solution for all investment needs, ensuring convenience and accessibility for its diverse clientele, the company said.

The dynamic synergy of technology and greater financial inclusion in India will continue to reshape the investment landscape in the country, providing unprecedented opportunities for growth.

Geojit Financial Services is well poised to leverage these advancements to further enhance its offerings and deliver superior value to customers, the company added.