Low PE Stock: This small-cap power company signs MoU with Gujarat Urja Vikas Nigam Limited for 600 MW project; hits 52-week high!
The stock is up by 26 per cent in just 3 months and over 50 per cent in 6 months.
On Monday, shares of Gujarat Industries Power Company Ltd surged 6.43 per cent to make a new 52-week high of Rs 122.40 per share from its previous closing of Rs 115. At the closing bell, shares of the company were trading at Rs 120.20 per share, up 4.52 per cent with a spurt in volume by more than 2.31 times on BSE.
The company informed that the Power Purchase Agreement executed between M/s Gujarat Industries Power Company Limited and M/s Gujarat Urja Vikas Nigam Limited for procurement of power from a 600 MW polar power project at Khavda, Great Rann of Kutch area, Gujarat.
Gujarat Industries Power Company Ltd is engaged in the generation of power from gas, lignite, wind and solar assets. Its principal place of business is located in the state of Gujarat. The company has a market cap of over Rs 1,800 crore.
According to the Quarterly Results and annual results, the company reported positive numbers. The net sales increased by 13 per cent to Rs 342 crore in Q1FY24 compared to net sales of Rs 303 crore in Q1FY23. The company reported a net profit of Rs 57 crore in Q1FY24 compared to a net profit of Rs 63 crore in the same quarter last year.
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The shares of the company have a PE of 9.93x whereas the industry PE is 27.4x. The stock is up by 26 per cent in just 3 months and over 50 per cent in 6 months. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.