Low PE stock under Rs 135 to keep under radar as Board announces 5:1 stock split & turnaround net profit in Q1; Do you own it?

Low PE stock under Rs 135 to keep under radar as Board announces 5:1 stock split & turnaround net profit in Q1; Do you own it?

Kiran Shroff

The shares of the company have a PE of 20x whereas the industry PE is 40x.

On Friday, shares of Abans Enterprises Ltd plunged 3.17 per cent to Rs 128.5 per share with an intraday high of Rs 132.70 and an intraday low of Rs 124.10. The stock’s 52-week high is Rs 200 and its 52-week low is Rs 111.40.

Abans Enterprises Ltd, established in 1985, is engaged in a diverse range of trading activities. The company deals in agricultural commodities like castor seed and guar gum, precious metals such as gold and silver, and various financial instruments including equities, derivatives, and currencies, both on exchanges and in the spot market.

According to Quarterly Results, the company reported net sales of Rs 257.22 crore in Q1FY25 compared to net sales of Rs 565.61 crore in Q4FY24. The company reported a turnaround net profit of Rs 4.44 crore in Q1FY25 compared to a net loss of Rs 1.51 crore in Q4FY24, an increase of 392 per cent. In its annual results, the company reported net sales of Rs 1,770.84 crore and net profit of Rs 9.76 crore in FY24.

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The company's board proposes to subdivide each existing shares having a face value of Rs 10 into 5 shares having a face value of Rs 2 each. This change requires shareholder approval. The specific date for determining shareholders eligible for the split (record date) will be announced later.

The shares of the company have a PE of 20x whereas the industry PE is 40x. The stock is up by 15.4 per cent from its 52-week low of Rs 111.40 per share. Investors should keep an eye on this micro-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice. 

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