Back-to-Back 52-week highs: Heavy buying in this low PE high ROE multibagger stock as it reports an 8,762 per cent jump in net profit!

The stock gave multibagger returns of 175 per cent in just 1 year whereas BSE Sensex Index is up by 8 per cent.

Shervani Industrial Syndicate Limited is engaged in the business of Real Estate and the development of infrastructure facilities. The company announced its Quarterly Results (Q1FY24) ended June 30, 2023. Here are the details:  

Financial Highlights for the Q1FY24: 

• Net sales stood at Rs 73.47 crore, up 3,346 per cent compared to Q1FY23. 
• Operating profit stood at Rs 20 crore, up 2,100 per cent company to Q1FY23.
• Profit before tax stood at Rs 20.20 crore, up 3,773 per cent compared to Q1FY23.  
• Profit After Tax of Rs 21.27 crore, up 8,762 per cent compared to Q1FY23.  
• The EPS for Q1FY24 is Rs 78.20.

According to the annual results, net sales increased by 300 per cent to Rs 27 crore, operating profit increased by 233 per cent to Rs 4 crore and net profit increased by 900 per cent to Rs 24 crore in FY23 compared to FY22. In the previous financial year 22-23, the company announced a dividend of Rs 2 per share having a face value of Rs 10 each. The company has a market cap of over Rs 150 crore.

On Thursday, shares of Shervani Industrial Syndicate Ltd zoomed 12.93 per cent to Rs 557.10 per share with an intraday high of Rs 575 and an intraday low of Rs 501. The stock also made a new 52-week high of Rs 575 per share with a spurt in volume by more than 4.73 times on BSE. In the recent trading sessions, the stock is hitting back-to-back 52-week highs.

The stock gave multibagger returns of 175 per cent in just 1 year whereas BSE Sensex Index is up by 8 per cent. The share of the company has a PE of 3.40x, an ROE of 18.82 per cent and a ROCE of 18 per cent. Investors should keep an eye on this micro-cap stock.

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