Key Points

In the case of Advik Capital, shareholders have been facing consistent value erosion. According to BSE Analytics data, the company's stock has dropped 45.61 per cent over the past one year.

On a year-to-date (YTD) basis, the stock is down 30.18 per cent, while in the last six months it has slipped 11.43 per cent.

Over a three-year period, the losses deepen further, with the stock declining more than 44 per cent.

The stock, which currently trading at Rs 1.56, has shown some short-term momentum, gaining 10.71 per cent in the past one month and 6.16 per cent in the past week.

However, this minor recovery has not been enough to offset the heavy long-term losses for investors.

Adding to the challenges, the company's 40th Annual General Meeting (AGM) saw several key proposals being rejected by shareholders.

These included increasing authorised share capital, raising funds through the issue of securities, enhancing borrowing limits under Section 180(1)(c) of the Companies Act, creating charges on assets, approving loans and investments beyond prescribed limits under Section 186, and approving related-party transactions under Section 188.

With these proposals not receiving shareholder approval, the company cannot move forward with its fundraising, borrowing plans, or other corporate decisions until it secures fresh approval.

This deadlock has further dampened investor sentiment around the stock.

In the first quarter of the current financial year (Q1 FY26), the net profit of the company dropped by nearly 80 per cent to Rs 0.48 crore, compared to Rs 2.34 crore in the same quarter previous financial year (Q1 FY25).

Advik Capital Limited is a New-Delhi based NBFC that provides loans, invests in securities, and engages in other financial activities, including leasing.

- IANS