Synopsis:
Gowra Leasing & Finance Limited reported a 226% increase in Q2 revenue to ₹2.87 crore YoY, while its net profit grew 109% YoY to ₹1.19 crore.
The shares of the Penny stock company, specializing in non-banking financial services, including providing various types of loans and advances, bill discounting, and inter-corporate deposits, hit a 5 percent upper circuit following their Q2 results with a 226 percent rise in revenue YoY.
With a market capitalization of 53.45 Crores on Thursday, the shares of Gowra Leasing & Finance Ltd hit a 5 percent upper circuit, reaching a high of Rs. 101.28 compared to its previous close of Rs. 96.46.
What Happened
Gowra Leasing & Finance Ltd, engaged in non-banking financial services, including providing various types of loans and advances, bill discounting, and inter-corporate deposits, has announced its Q2 results as follows:
Its Revenue from operations rose by 226 percent YoY from Rs. 0.88 Crores in Q2FY25 to Rs. 2.87 Crores in Q2FY26, and it rose by 10 percent QoQ from Rs. 2.62 Crores in Q1FY26 to Rs. 2.87 Crores in Q2FY26.
Its Net Profit YoY rose by 109 percent from Rs. 0.57 Crores in Q2FY25 to Rs. 1.19 Crores in Q2FY26, and it declined by 8 percent QoQ from Rs. 1.29 Crores in Q1FY26 to Rs. 1.19 Crores in Q2FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 2.19, compared to Rs. 2.37 in the previous quarter.
The company has demonstrated strong financial performance with a Return on Capital Employed (ROCE) of 18.3 percent and a Return on Equity (ROE) of 16.9 percent. The company’s price-to-earnings (P/E) ratio of 9.19 is significantly lower than the industry average of 22.2, suggesting that the stock may be undervalued compared to its peers.
Additionally, the company maintains a manageable debt-to-equity ratio of 0.74 and a remarkably low PEG ratio of 0.09, highlighting its growth potential relative to its price. It has also posted an impressive 50.8% compound annual growth rate (CAGR) in profit over the last five years, underscoring its strong financial trajectory and ability to deliver consistent earnings growth.
Company Overview & Others
Gowra Leasing & Finance Limited (GLFL) is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India. Incorporated on February 9, 1993, GLFL is classified as a Loan Company by the Reserve Bank of India and primarily serves mid-corporate and retail customers. The company’s shares are listed on the Bombay Stock Exchange (BSE).
It specialises in non-banking financial services, including providing various types of loans and advances, bill discounting, and inter-corporate deposits. As a Non-Banking Financial Company (NBFC), the company primarily engages in “Investment and Financing Activities” for mid-corporate and retail customers. The company provides financial services such as corporate loans, inter-corporate deposits (ICDs), and bill discounting, and also engages in leasing and investment activities.
Written by Sridhar J
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