Shares of PTC India Financial Services Ltd. jumped 11% to hit a 52-week high on Tuesday as the stock continues to swing since the Aug. 2 clarification by the company on putting behind its governance issues.
The company is grappling with the fallout of independent directors' resignation over corporate governance issues in January last year. While the Registrar of Companies found the company and Managing Director and Chief Executive Officer Pawan Singh in violation of Companies Act, the market regulator has blamed the corporate governance lapses on top executives.
The management, according to an earnings call transcript released on Aug. 2, is confident of resolving these issues.
Shares also got support after the company said it had reduced its exposure to projects reliant on fossil fuels.
PTC, a non-bank lender, offers financial assistance for renewable projects totaling 14,858 MW, with annual carbon reductions of 25 million tonne—a total of 375 million tonne of CO2, considering an average project life of 15 years—and 362 million litres of water preservation each day.
PTC India Financial Services Q1 FY24 Highlights (Consolidated, YoY)
Total income down 6.74% at Rs 193.2 crore.
Profit after tax down 27.27% at Rs 36.8 crore.
Net interest margin increased to 4.33% from 4.23%.
Capital adequacy ratio stood at 34.90% as of June 30.
Total fresh loans sanctioned stood at Rs 305 crore and disbursed were at Rs 332 crore during Q1 FY24.
Shares of the company rose as much as 11% before paring gains to trade 8.09% higher at 11:08 a.m., compared to a 0.14% decline in the Nifty 50.
The stock doubled from its 52-week low of Rs 12.15 on March 29 and reached an intraday high of Rs 24.73 on Aug. 7.
The total traded quantity so far in the day stood at 9.5 times the 30-day average volume. The stock's relative strength index stands at 74.65, indicating that it may be overbought.
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