950 per cent returns in this low PE high ROE multibagger stock; Board announced stock split of shares!

950 per cent returns in this low PE high ROE multibagger stock; Board announced stock split of shares!

Geekay Wires Ltd informed that the Board of Directors of the company have approved the sub-division/split of every 1 equity share of the face value of Rs 10 each into 5 equity shares of the face value of Rs 2 each. The company fixed the record date for the stock split as Monday, October 23, 2023.  

Today, shares of Geekay Wires Ltd were locked in a 5 per cent upper circuit to Rs 345.50 per share from its previous closing of Rs 329. The stock also made a new 52-week high of Rs 345.45 per share.

Geekay Wires is engaged in the manufacturing of niche-quality galvanized steel wires and nails which find applications in power transmission, cable & conductor, general engineering, construction etc.

Geekay Wires has a market cap of Rs 361 crore and has delivered good profit growth of 100 per cent CAGR over the last 5 years. According to the Quarterly Results (Q1FY24), the net sales increased by 12 per cent to Rs 97.80 crore and net profit skyrocketed by 222.48 per cent to Rs 8.32 crore compared to Q1FY23. The company also reported amazing numbers in its annual results (FY23) and has been maintaining a healthy dividend payout of 36.2 per cent.

The shares of the company have a PE of 11.2x, an ROE of 42.2 per cent and an ROCE of 27.1 per cent. The stock gave multibagger returns of 453 per cent in just 1 year and a whopping 950 per cent in 5 years.  Investors should keep an eye on this micro-cap stock.

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