Low PE High ROE stock: Don’t miss the action in this micro-cap company that announced rights issue!

The stock has a PE of 4.39x, whereas the sectoral PE is 38.46x with an ROE of 20.98 per cent. 

Prerna Infrabuild Ltd announced the rights issue of shares to its shareholders in the ratio of 2:1. The company will issue 2.41 crore equity shares with an issue price of Rs 20 per fully paid-up equity share (including a premium of Rs 10 per equity share) aggregating to Rs 48.17 crore. The company verified the record date as Friday, April 21, 2023. 

On Monday, shares of Prerna Infrabuild were up by 3.58 per cent to Rs 33.70 per share. The stock's intraday high was Rs 36.80 and its intraday low was Rs 32.02. 

Prerna Infrabuild Ltd was incorporated in 1988. The company is engaged in commercial and residential real estate projects in Ahmedabad. The shares of the company saw a spurt in volume by more than 1.84 times on BSE.

Talking about the financials, Prerna Infrabuild has a market cap of Rs 40.58 crore. In Q3FY23, net sales rose by 24.26 per cent and net profit rose by 169.71 per cent compared to Q3FY22. In FY22, net sales skyrocketed 429.58 per cent compared to FY21. 

The stock has a PE of 4.39x, whereas the sectoral PE is 38.46x with an ROE of 20.98 per cent. 

Investors should keep an eye on this micro-cap stock.