Low PE & High ROE Penny Stock Under Rs 20; Company Sold 33.33% Shares of Associate Company - Mudra Finance Ltd

The stock is up 22.8 per cent from its 52-week low of Rs 15.10 per share.

On Friday, shares of Vipul Ltd plunged 5 per cent to Rs 18.55 per share from its previous closing of Rs 19.52 per share with an intraday high of Rs 18.55 per share and an intraday low of Rs 18.55 per share. The stock’s 52-week high is Rs 52.88 per share and its 52-week low is Rs 15.10 per share.

This letter informs you that Vipul Limited has entered into an agreement to divest its entire 33.33% stake in M/s. Mudra Finance Limited, an associate company. Upon completion of the transaction, M/s. Mudra Finance Limited will no longer be considered an associate of Vipul Limited. This disclosure is made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and in compliance with SEBI Master Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, regarding acquisitions, disposals, and other restructuring activities.

The following details pertain to this transaction:

• Financial Contribution: M/s. Mudra Finance Limited contributed Rs 9,63,182 in profit to Vipul Limited during the last financial year.
• Agreement Date: The agreement for the sale of the stake was entered into on January 09, 2025.
• Completion Date: The expected date of completion of the sale is January 24, 2025.
• Consideration: The total consideration received for the sale of the stake is Rs 3,10,00,000.
• Buyer: The buyer of the stake is M/s. Mudra Finance Limited itself does not belong to the promoter group or any associated companies of Vipul Limited.
• Related Party Transaction: This transaction qualifies as a related party transaction. However, it is considered to have been conducted at arm's length

About the Company

Vipul Ltd, a prominent real estate company established in 1991, is part of the esteemed Vipul Group. With a strong track record, the company has delivered over 10 million square feet of properties to 7,000+ satisfied customers, primarily in Gurugram. Their diverse portfolio includes residential projects like Tatvam Villas and Vipul Greens, and commercial spaces like Vipul Business Park and Vipul Plaza. Expanding its reach, Vipul Ltd has undertaken projects in Bhubaneswar, Ludhiana, Dharuhera, Bawal, and Faridabad.

According to Quarterly Results, the net sales increased by 110 per cent to Rs 15.70 crore in Q2FY25 compared to net sales of Rs 7.47 crore in Q2FY24. The company reported a net profit of Rs 1.11 crore in Q2FY25 compared to a net loss of Rs 17.09 crore in Q2FY24, an increase of 106 per cent. Looking at the half-yearly results, the net sales increased by 132 per cent to Rs 31.56 crore in H1FY25 compared to net sales of Rs 13.58 crore in H1FY24. The company reported a net profit of Rs 2.88 crore in H1FY25 compared to a net loss of Rs 32.41 crore in H1FY24, an increase of 109 per cent.

The company has a market cap of Rs 261.5 crore and has delivered good profit growth of 188 per cent CAGR over the last 5 years. The shares of the company have a PE of 2x and an ROE of 100 per cent. The stock is up 22.8 per cent from its 52-week low of Rs 15.10 per share. Investors should keep an eye on this low PE & high ROE penny stock under the radar.

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