170 per cent returns in this low PE high ROE multibagger stock: Board announces bonus shares; scrip hits back-to-back 52-week highs!

The stock gave multibagger returns of 170 per cent in just 1 year whereas BSE Sensex Index is up by 12.3 per cent.

On Monday, shares of Power Finance Corporation Limited gained 2.88 per cent to an intraday high of Rs 313.90 per share from its previous closing of Rs 305.1. The stock also made a new 52-week high of Rs 306.75 per share. In the recent trading sessions, the stock is hitting back-to-back 52-week highs.

Power Finance Corporation Limited informed the company that the Board of Directors of the company have approved bonus shares in the ratio of 1:4 i.e., bonus issue of 1 equity share of Rs 10 each fully paid-up for every 4 existing equity shares of Rs 10 each fully paid-up as of record date. The company fixed the record date for the bonus issue of shares as Thursday, September 21, 2023.

Previously, Power Finance Corporation Limited executed various Memoranda of Understanding (MoU) of more than Rs 2.37 lakh crore with 20 companies both in the public and private sectors. These MoUs were signed with solar, wind power, green hydrogen, battery storage, electric vehicle companies as well as the manufacturers of green energy equipment among others in the clean energy space. Adani, Greenco, ReNew, Continuum, Avaada, JBM Auto, Megha Engineering & Infrastructure Limited, Rajasthan Renewable Energy, etc. were some of the companies with whom PFC signed the MoU.

According to the financials, PFCL has a market cap of over Rs 80,000 crore and a 3-year stock price CAGR of 50 per cent. The company’s maximum stake is owned by The President of India (55.99 per cent) as of March 2023. The company reported excellent numbers in its Quarterly Results and annual results.

The stock has a PE of 4.72x and a ROE of 21 per cent. The stock gave multibagger returns of 170 per cent in just 1 year whereas BSE Sensex Index is up by 12.3 per cent. Investors should keep an eye on this PSU stock under the radar.

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