Low PE High ROE stock: Don’t miss action in this multibagger stock that has announced rights issue!

The stock has a PE multiple of 4.82 and an ROE of 60 per cent with multibagger returns of 732.79 per cent.

Sparc Electrex Ltd announced that the Board reconsidered and approved the proposal for issuance of equity shares of the face value of Rs 10 for an amount not exceeding Rs 30 crore through a rights issue, to the eligible equity shareholders of the Company as of the record date. The company verified the record date for issuance of rights issue as Tuesday, February 28, 2023.  

Today, shares of Sparc Electrex Ltd surged 4.1 per cent to an intraday high of Rs 25.40 per share from its previous closing of Rs 24.40. At the end of the day, the shares of the company were locked at a 5 per cent lower circuit to Rs 23.20 per share.  

Sparc Electrex Ltd, also known as Sparc Systems Ltd, deals in software and hardware electronic security solutions i.e., office automation tools. Today, shares of the company saw a spurt in volume by more than 1.07 times on BSE.  

Talking about the financials, Sparc Electrex Ltd has a market cap of Rs 12 crore. The company reported positive numbers in its Quarterly Results and annual results. The stock has a PE multiple of 4.82 whereas a sectoral PE multiple is 32.8 with an ROE of 60 per cent.  

The stock gave multibagger returns of 732.79 per cent in the past 2 years whereas BSE Sensex Index rose only 23.65 per cent. Investors should keep an eye on this Small-Cap stock.