High ROE and ROCE multibagger stock: This small-cap stocks zooms after bagging a work order!

The stock gave multibagger returns of 215.50 per cent in just 1 year whereas BSE Small-cap Index was down by 2.49 per cent.

Praveg Ltd (BSE Script Code: 531637) informed that the company has received a work order from the Department of Tourism, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu for the development, operation, maintenance and management of Tent City at Ghoghla Beach, Diu. The size of the order is a minimum of 35 tents with one restaurant and one conference room which will be executed in 3 years and may be further extendable up to 2 years. 

Today, shares of the company zoomed 3 per cent to Rs 439.85 per share from its previous closing of Rs 427.05. The stock has a 52-week high of Rs 612 and a 52-week low of Rs 122. 

Praveg Ltd is an advertising company with core competence in exhibition and event management. The company is also engaged in providing services to the hospitality sector, publications and real estate marketing. The company has set up its branches nationally and internationally. 

According to the financials, Praveg Ltd has a market cap of Rs 910 crore. In both quarterly and annual results, the company has reported excellent results. In Q3FY23, net sales rose by 79.89 per cent and net profit skyrocketed by 110.57 per cent compared to the same quarter last year(Q3FY22). 

The stock has an ROE of 70.81 per cent and a ROCE of 67.15 per cent respectively. The stock gave multibagger returns of 215.50 per cent in just 1 year whereas BSE Small-Cap Index was down by 2.49 per cent. Investors should keep an eye on this consumer discretionary stock.