16,470 per cent multibagger returns: Board announces stock split; stock trades at low PE & high ROE!

The stock gave multibagger returns of 180 per cent in just 1 year whereas BSE Sensex Index is up by 19.5 per cent.

Today, shares of Refex Industries Ltd plunged 1.89 per cent to Rs 684.70 per share, up from its previous closing of Rs 697.55 with an intraday high of Rs 697.75 and an intraday low of Rs 680. 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 has approved a stock split of equity shares i.e., to sub-divide/split 1 equity share of the company of Rs 10 each, fully paid up into 5 equity shares of the face value of Rs 2 each, fully paid-up by alteration of capital clause of the Memorandum of Association of the company. The Record Date for sub-division/ split of existing equity shares will be intimated in due course.

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 over Rs 1,500 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 12.4x whereas the sectoral PE is 55.3x with an ROE of 47 per cent and an ROCE of 48 per cent.

The stock gave multibagger returns of 180 per cent in just 1 year whereas BSE Sensex Index is up by 19.5 per cent. Furthermore, the stock gave 615 per cent in 3 years and a whopping 16,470 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.