When a business starts firing on all cylinders, it can transform into a potential top stock to buy. And by identifying that potential before everyone else, investors can benefit from the share price doing extraordinary things.
That’s the story of Lion Finance Group (LSE:BGEO), which has surged 748.1% in the last five years. But for those who also reinvested the dividends along the way, the total return climbs even further to 1,042.8%.
Just to put this into perspective, that’s enough to turn a £5,000 initial investment into roughly £57,140 today. So what drove those incredible returns? And can the FTSE stock continue?
What does Lion Finance Group actually do?
Lion Finance Group, formerly known as Bank of Georgia Group, is a unique banking institution with significant interests in healthcare, insurance, retail, and real estate through its investment arm.
In other words, it’s a financial and commercial conglomerate positioned at the heart of two fast-growing economies in Georgia and Armenia.
So, why has the share price exploded?
The short answer is that Georgia has boomed.
The country has become a magnet for international enterprises and investor capital since 2022, benefiting from significant inflows of professionals and businesses following geopolitical tensions elsewhere in the Middle East. That has subsequently supercharged credit growth, fee income, and margins well beyond what most Western banks could dream of.
In 2025, the group posted a record return on average equity of 28.4%, with net profit growing strongly and the dividend climbing alongside earnings.
With this newfound financial flexibility, management has been aggressively returning cash to shareholders through buybacks, amplifying returns even further. It’s a combination of tailwinds that growth investors love to see. But the question is, can the financial and share price momentum continue?
Is there still potential from here?
Despite all the recent growth, Georgia still has relatively low banking penetration compared to more developed economies.
As such, there’s a long runway for loan and deposit growth ahead. And it’s why several institutional analysts have maintained Buy ratings and above-market price targets, citing strong capital generation, attractive valuations relative to emerging market peers, and the continued momentum in the Georgian and Armenian economies.
However, while Lion Finance Group seems to be charging ahead at an impressive pace, that doesn’t mean continued success is guaranteed.
So far, geopolitical tensions in the Middle East have proven to be a handy catalyst. But both Armenia and Georgia sit in a complex neighbourhood of historical bloodshed. Tensions between the surrounding countries have risen in the past, leading to instability. And if that were to repeat, the current economic tailwinds could quickly reverse.
So, with that in mind, where does that leave investors today?
Still a stock to buy?
Personally, I think this remains one of the most exciting and overlooked growth stories on the London market.
Even after its recent surge, the stock still trades at a fairly undemanding valuation compared to the return on equity it’s generating for shareholders. And provided relations in the region remain stable, investors could be able to tap directly into some of the fastest-growing economies in the world.
That’s why I think Lion Finance Group could still be one of the best stocks to consider today and is worth investigating further.
Should you invest £5,000 in Lion Finance Group Plc right now?
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And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Lion Finance Group Plc made the list?
Zaven Boyrazian does not hold any positions in the companies mentioned.
