What’s new

• Revenue soared to ₹25.73 crore from ₹8.39 crore in the March quarter.
• Net profit of ₹20.08 lakh reversed a ₹25.21 lakh loss last quarter.
• Auditors issued an unmodified limited review report.

Why it matters

For a micro-cap broker with a market cap of just ₹39 crore, a threefold revenue jump and a swing to profitability is a dramatic turnaround. But the net profit margin is wafer-thin, raising questions about sustainability.

What we’re watching

• Whether revenue growth is repeatable or a one-off.
• Cost trajectory - margins need to widen for the stock to justify its trailing P/E of 287.6.
• Any forward guidance from management in the coming quarters.

The full read

NAM Securities just reported its best quarter in recent memory. Revenue from operations hit ₹25.73 crore, more than triple the preceding quarter's ₹8.39 crore and well above the ₹11.84 crore a year ago. Net profit came in at ₹20.08 lakh, reversing a ₹25.21 lakh loss in the March quarter. These are strong numbers on their face. But the profit margin is razor-thin, and the company's trailing P/E of 287.6 leaves no room for disappointment. The stock will cheer the turnaround. The question is whether it can sustain this revenue run-rate and expand margins before the market starts asking harder questions.

Primary source: BSE · NSE