15,456 per cent multibagger returns: Board likely to announce stock split; stock trades at low PE & high ROE!

The stock gave multibagger returns of 145 per cent in just 1 year whereas BSE Sensex Index is up by 17.5 per cent.

Today, one of the Top Gainers on BSE, shares of Refex Industries Ltd was locked in a 5 per cent upper circuit to Rs 647.15 per share, up from its previous closing of Rs 616.35 with a spurt in volume by more than 1.22 times on BSE. The stock’s 52-week high at Rs 923.25 and its 52-week low is Rs 221.30.

Refex Industries Ltd informed that a meeting of the Board of Directors of the company is scheduled to be held on Wednesday, January 24, 2024, inter alia, to consider and approve the proposal to alter the share capital by sub-division/ stock split of the existing equity shares of the company having face value of Rs 10 each, in such manner as may be determined by the Board of Directors and subject to the approval of the shareholders and such authorities as may be required.

According to Quarterly Results, net sales increased by per cent to Rs 352 crore and net profit increased by 200 per cent to Rs 21 crore in Q2FY24 compared to Q2FY23. Similarly, in FY23, the net sales increased by 266.96 per cent and the net profit increased by 155.72 per cent with an EPS of Rs 52.50 compared to FY22.

Refex Industries Limited (RIL) has a market cap of Rs 1,432.37 crore. It is a specialist manufacturer and re-filler of refrigerant gases that serve as replacements for Chloro-fluoro-carbons. The shares of the company have a PE of 12x whereas the sectoral PE is 50.2x with an ROE of 38 per cent and an ROCE of 61 per cent.

The stock gave multibagger returns of 145 per cent in just 1 year whereas BSE Sensex Index is up by 17.5 per cent. Furthermore, the stock gave 560 per cent in 3 years and a whopping 15,486 per cent in a decade. Investors should keep an eye on this Small-Cap stock under the radar.

Disclaimer: The article is for informational purposes only and not investment advice.