Low PE stock under Rs 2: Don’t miss action in this micro-cap scrip that is likely to announce rights issue!
The stock is up by 30 per cent in just 1 month and over 50 per cent in 3 months.
On Monday, one of the Top Gainers on BSE, shares of G G Engineering Ltd zoomed 14.88 per cent to an intraday high of Rs 1.39 per share from its previous closing of Rs 1.21. At 3:30 pm, shares of the company ended the day in green, up 7.44 per cent to Rs 1.30 per share.
The reason behind the sudden rise in stock price is due to the company informed that the meeting of the Board of Directors of the Company is scheduled to be held on Wednesday, July 5, 2023, inter-alia, to transact the following businesses:
1. The company has made decisions regarding a Rights Issue, which involves raising funds through the issuance of fully paid-up equity shares. The Rights Issue will have a total value of up to Rs 50 crore, and the shares will have a face value of Rs 1 each. The terms and conditions of the Rights Issue, including the Rights Issue price, payment mechanism, Rights Issue size, Rights Entitlement Ratio, and other related matters, will be determined. The Rights Issue will be conducted in a single trench, not exceeding Rs 50 crore.
2. To consider the appointment of the Company Secretary (Key Managerial Personnel) of the Company in terms of Section 203 of the Companies Act, 2013.
3. To consider and approve any other item(s) with the permission of the Chair
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G G Engineering Limited manufactures electric power generators. The company develops diesel generators and engines for power management. The net sales increased by 493 per cent and net profit increased by 2,018 per cent in Q4FY23 over Q4FY22. In FY23, net sales skyrocketed by 558 per cent and net profit skyrocketed by 3,404 per cent over FY22. The stock has a PE of 5.19x whereas the sectoral PE is 27x.
The stock is up by 30 per cent in just 1 month and over 50 per cent in 3 months. Heavy buying was seen on this micro-cap stock and saw a spurt in volume by more than 5.10 times on BSE.
Investors should keep this penny stock under the radar.