Low PE stock below Rs 100: This small-cap company acquires a new project worth Rs 1,200 crore!

The shares of the company saw heavy buying with a spurt in volume by more than 5.82 times on BSE.

Shriram Properties Limited (SPL), one of the leading real estate developers in South India, has acquired 100 per cent development rights in an ongoing project in Chennai, through its wholly owned subsidiary, Shrivision Elevations Private Limited.

The project, named 'Divine City,' is an approved residential development that will be developed in three phases. With an aggregate saleable area, the project has a revenue potential of around Rs 1,200 crore over the next five years. It benefits from several significant competitive strengths, including its proximity to the IT corridor (DLF IT Park) and the improving metro rail infrastructure, among others.

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On Wednesday, the shares of Shriram Properties Ltd surged by 2.84 per cent, reaching an intraday high of Rs 65.79 per share. By the closing bell, the company's shares were trading positively, up 1.30 per cent at Rs 64.80 per share. The shares of the company saw heavy buying with a spurt in volume by more than 5.82 times on BSE.

The net sales increased by 60 per cent and net profit increased by 70 per cent in Q3FY22 over Q3FY22. The net sales increased 65.60 per cent in FY22 over FY21. The company reported a net profit of Rs 18 crore in FY22 compared to a net loss of Rs 68 crore in FY21.

The stock has a PE of 9.55x whereas the sectoral PE is 33x. Investors should keep an eye on this stock.