Low PE penny stock under Rs 5; Board likely to announce bonus shares, stock split and dividend!

The stock has a PE of 18.60x whereas the industry PE is 30x.

On Friday, shares of Earum Pharmaceuticals plunged 3.87 per cent to Rs 1.49 per share from its previous closing of Rs 1.55 with an intraday high of Rs 1.62 and an intraday low of Rs 1.48. The stock has a 52-week high of Rs 3.64 and a 52-week low of Rs 1.45.

The sudden rise in the stock price is due to the company announcing that a meeting of the Board of Directors will be held on Friday, July 21, 2023 to discuss and consider inter alia:

1. The proposal for Buyback of Equity Shares of the Company.
2. The proposal to recommend the declaration of the Final dividend for the FY 2022-23.
3. The proposal to Issue bonus Equity Shares to the existing equity Shareholders of the Company.
4. The proposal for the sub-division of equity shares of the Company.
5. To finalize the date, day, time and venue of the Annual General Meeting of shareholders for the F.Y. 2022-23.

Earum Pharmaceuticals Limited produces and distributes pharmaceutical products. The company offers tablets, capsules, ointments, creams, gels, powders, and syrup. Earum Pharmaceuticals markets its products globally.

Earum Pharmaceuticals has a market cap of Rs 36.82 crore. The company reported positive numbers in its both Quarterly Results and annual results. The stock has a PE of 18.60x whereas the industry PE is 30x.