Low PE high ROE stock: This smallcap company bags multiple orders worth Rs 457.39 crore!

The stock has an 8.97 PE multiple, while the sectoral PE multiple is 28.8 and the ROE is 26.6.

Today, shares of Likhitha Infrastructure Ltd rose 0.25 per cent to Rs 242.85 per share from its previous closing of Rs 242.25.   

The company recently told the exchange that it has received multiple orders worth of Rs 457.39 crore (approx.) excluding GST from various oil and/or gas distribution companies. During the quarter, from October 2022 to December 2022 the company received orders worth Rs 305.85 crore and on January 02, 2023, another order worth Rs 120 crore.  

Likhitha Infrastructure Ltd has a market cap of Rs 955.68. The firm is engaged in the business of pipeline laying by providing comprehensive erection, testing and commissioning of oil & gas pipelines, city gas distribution (CGD) projects and operation and maintenance (O&M) services.   

According to the full-year consolidated financial statements, net sales and net profit increased by 41.07 per cent and 40.6 per cent, respectively in FY22 over FY21.   

The stock has an 8.97 PE multiple, while the sectoral PE multiple is 28.8 and the ROE is 26.6. The stock has gained 60.98 per cent in the last six months, with a 52-week high of Rs 274 and a 52-week low of Rs 118. Investors should keep an eye on this stock.