Low PE stock under Rs 2: This micro-cap heavy electrical equipment company reported a 145 per cent jump in net profit; do you own it?
The shares have a PE of 10.80x whereas the industry PE is 27.30x.
G G Engineering Ltd (BSE: 540614), a leading player in the infrastructural & structural steel, and engineering products industry, in its board meeting held on July 20, 2023, has approved the unaudited financial results of the company for the first quarter ended June 30, 2023.
Standalone Financial Performance Comparison – Q1FY24 vs Q1FY23
- Revenue from Operations grew by 143.42 per cent from Rs 778.35 lakh in Q1FY23 to Rs 1894.66 lakh in Q1FY24.
- EBITDA increased by 226.88 per cent from Rs 16.22 lakh in Q1FY23 to Rs 53.02 lakh in Q1FY24.
- EBITDA margins increased from 2.08 per cent in Q1FY23 to 2.79 per cent in Q1FY24 by 71 basis points.
- PAT increased by 145 per cent from Rs 13.84 lakh in Q1FY23 to Rs 33.88 lakh in Q1FY24.
As per the consolidated annual results, net sales increased 352.17 per cent to Rs 104 crore in FY23 over FY22. The company reported a net profit of Rs 8 crore with EPS of Rs 0.09 for FY23.
Additionally, the company recently announced a rights issue. The company had authorized a rights issue in the ratio of 38:29, with July 11, 2023, being the record date for eligible shareholders. The issue price of the rights issue was Rs 1 per equity share, having a face value of Rs 1 each. The issue opening date was Thursday, July 20, 2023, and the issue closing date was Monday, July 31, 2023.
DSIJ offers a service 'Micro Marvel' with recommendations for micro-cap stocks based on research and analysis to help subscribers make informed investment decisions. If this interests you, then do download the service details pdf here
G G Engineering Limited manufactures electric power generators. The company develops diesel generators and engines for power management. Today, shares of G G Engineering surged 0.88 per cent to Rs 1.14 per share with an intraday high of Rs 1.19 per share and an intraday low of Rs 1.09 per share.
The shares have a PE of 10.80x whereas the industry PE is 27.30x. Heavy buying was seen on this micro-cap stock and saw a spurt in volume by more than 1.08 times on BSE. Investors should keep this penny stock under the radar.
Disclaimer: The article is for informational purposes only and not investment advice.