Multibagger from its 52-week low; Board announced rights issue!

The stock has a PE of 14x, a ROE of 55 per cent and a ROCE of 57 per cent.

Clara Industries Ltd informed that The Board of Directors has approved the rights issue in the ratio 2:3. The company fixed the record date for the rights issue as Thursday, May 11, 2023 with an Issue size of 16,53,986 crore Equity Shares of the face value of Rs 10 each, for an aggregate amount not exceeding Rs 27.62 crore.  

The rights issue price of shares is Rs 167 (Including a premium of Rs 157) per Equity Share with the issue opening date as Tuesday, May 23, 2023 and the closing date as Thursday, June 1, 2023.  

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On Tuesday, the shares of Clara Industries zoomed 0.20 per cent to Rs 224.75 per share from its previous closing of Rs 224.30. The stock gave multibagger returns of 176 per cent from its 52-week low of Rs 81.70 per share. The shares of the company saw a spurt in volume by more than 2 times on BSE.

Clara Industries Limited manufactures plastic packaging materials. The company offers packaging films, horticulture bags, mats and bottles. Clara Industries serves customers in India.  

Talking about the financials, Clara Industries has a market cap of Rs 55 crore with a 1-year CAGR of 110 per cent. The net sales skyrocketed 120 per cent and net profit skyrocketed 175 per cent in Q4FY23 over Q4FY22. In FY23, net sales skyrocketed 212 per cent and net profit skyrocketed 277 per cent over FY22.   

The stock has a PE of 14x, a ROE of 55 per cent and a ROCE of 57 per cent. Investors should keep an eye on this micro-cap stock.