20 per cent upper circuit in this low PE high ROE multibagger stock; Board likely to announce bonus shares and migration from SME to Main Board!

From Rs 42.80 per share to Rs 159 per share, the stock gave multibagger returns of 271.49 per cent in just 2 years.

On Wednesday, one of the Top Gainers on BSE, shares of Shri Venkatesh Refineries jumped 20 per cent upper circuit to Rs 159 per share from its previous closing of Rs 132.50. The shares of the company saw a spurt in volume by more than 7.11 times on BSE.

Shri Venkatesh Refineries Ltd informed that a meeting of the Board of Directors of the company will be held on Wednesday, September 06, 2023, at 4:00 P.M. at the registered office of the company, inter alia,

1) To consider & approve an increase in authorised share capital.

2) To consider & declare of issue of bonus shares to the equity shareholders subject to rules and regulations of exchange, if any.

3) To approve the annual report of the company.

4) To approve material-related party transaction(s).

5) To consider and approve the migration process from SME to Main Board of BSE in terms of Regulation 277 and other applicable provisions of SEBI (ICDR) Regulations, 2018 along with BSE rules & regulations, if any.

6) To consider & approve the AGM notice.

7) To consider the appointment of a scrutinizer to conduct the AGM and scrutiny of voting along with e-voting results regarding conversion

8) Any other matter with the permission of the chair.

Shri Venkatesh Refineries Ltd is in the business of manufacturing and marketing edible oils. The company has a market cap of Rs 175.85 crore and has delivered good profit growth of 86.8 per cent CAGR over the last 5 years. The company reported positive numbers in its Quarterly Results and annual results.

The shares of the company have a PE of 14.4x whereas the industry PE is 31.6x with an ROE of 32.5 per cent and a ROCE of 23.2 per cent. From Rs 42.80 per share to Rs 159 per share, the stock gave multibagger returns of 271.49 per cent in just 2 years. Investors should keep an eye on this micro-cap stock.

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