Low PE high ROE multibagger stock; Board likely to announce stock split and dividend!

The shares of the company saw a spurt in volume by more than 1.35 times on BSE.

Sarda Engineering Ltd, a flagship company of the Sarda Group, engaged in the production of steel, ferroalloys, and power, has informed that a meeting of the Board of Directors of the company is scheduled to be held on May 27, 2023, interalia:

1) To consider and approve audited financial and segment-wise results (standalone and consolidated) for the F.Y. 2022-23 and matters related/incidental thereto.

2) To consider and approve the audited financial statements (standalone and consolidated) for the F.Y. 2022-23 and matters related/incidental thereto.

3) To consider and recommend dividend, if any, for the financial year ended March 31, 2023, and matters related/incidental thereto.

4) To consider a proposal for the sub-division of the equity shares of the company, having a face value of Rs 10 each, in such a manner as may be determined by the Board of Directors.

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Sarda Energy & Minerals Limited (SEML) is the flagship company of the Sarda Group and is engaged in the production of steel, ferroalloys, and power. The company has delivered good profit growth of 51.0 per cent CAGR over the last 5 years.

On Friday, shares of Sarda Engineering plunged 0.50 per cent to Rs 1,137.05 per share, with an intraday high of Rs 1,138 and an intraday low of Rs 1,125. The shares of the company saw a spurt in volume by more than 1.35 times on BSE.

The stock has a PE of 5.66x, whereas the sectoral PE is 17x, with a ROE of 30.80 per cent and a ROCE of 30 per cent. From Rs 131.85 per share to Rs 1,136.55 per share, the stock gave multibagger returns of 765 per cent in just 3 years. Investors should keep an eye on this Small-Cap stock.