rakesh jhunjhunwala: Rakesh Jhunjhunwala’s Rs 130 crore bet jumps 12% as its Q4 profit doubles

The scrip jumped 12 per cent to Rs 74.75 in early deals, only to cool down to Rs 71.9, up 8 per cent for the day at 9:45 am. Yet, it sharply outperformed the S&P BSE Sensex index, which was up 303.98 points or 0.62 per cent at 49,036.53

Reflecting buoyancy in the markets, the Kochi-based brokerage reported a net profit of Rs 36.8 crore for the quarter ended March 31, up 95 per cent from Rs 18.8 crore it had reported for the corresponding period a year ago.

Consolidated revenue in the reporting quarter grew 48 per cent to Rs 122.56 crore in the fourth quarter of the financial year 2020-21 from Rs 82.68 crore in the year-ago period.

Big Bull Rakesh Jhunjhunwala holds a 7.57 per cent stake (18,037,500 equity shares) in the company, which is unchanged for more than the previous eight quarters. His stake is valued at Rs 130 crore.

Geojit Financial Services has delivered a return of more than 300 per cent in the last one year, soaring to Rs 74.75 from 18.6 in May 2020.

For the full year, the Kochi-headquartered company reported a 163 per cent spike in net profit to Rs 123 crore. The consolidated revenue jumped 39 per cent to Rs 426.81 crore in FY21 from Rs 306.37 crore in FY20.

The board of the Kochi-based company, which is a leading distributor of mutual fund SIPs, has also decided to enter the International Finance Centre in Ahmedabad with an alternative investment fund (AIF).

To further diversify the client offerings and consolidate our presence, the board has approved a proposal to form an entity in Gift City to acquire an AMC licence as an AIF manager, said Satish Menon, executive director, Geojit Group.

In FY21, it added 66,000 clients and now has 11,10,000 clients, Menon said.

At the end of March, the company’s assets under custody and management stood at Rs 51,000 crore. It has declared a 350 per cent annual dividend at Rs 3.50 per share.