PE Ratio Below 1 & High ROE Penny Stock Under Rs 15 Jumps After Board Approves Rights Issue Worth Rs 49,75,00,000
The shares of the company have a PE of 0.70x and an ROE of 100 per cent.
On Monday, shares of Vipul Ltd jumped 4.23 per cent to an intraday high of Rs 11.60 per share from its previous closing of Rs 11.13 per share. The stock’s 52-week high is Rs 52.88 per share and its 52-week low is Rs 10.58 per share.
Vipul Limited announced that its Right Issue Committee, at a meeting held on February 28, 2025, approved a Draft Letter of Offer (DLOF) for a rights issue to raise up to Rs 49.75 crore. This issue involves the issuance of fully paid-up equity shares with a face value of Re 1 each to existing shareholders, subject to in-principle approvals from BSE and NSE. The specific price and right entitlement ratio will be determined by the Board or the Right Issue Committee at a later date, adhering to applicable regulations, including the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and the Companies Act, 2013.
Earlier, Vipul Limited sold its 33.33 per cent stake in Mudra Finance Limited for Rs 3.1 crore. After the sale, Mudra Finance will no longer be linked to Vipul. Notably, Mudra Finance itself is buying these shares, despite having contributed a small profit to Vipul last year.
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About the Company
Vipul Ltd, a prominent real estate company established in 1991, is part of the esteemed Vipul Group. With a strong track record, the company has delivered over 10 million square feet of properties to 7,000+ satisfied customers, primarily in Gurugram. Their diverse portfolio includes residential projects like Tatvam Villas and Vipul Greens and commercial spaces like Vipul Business Park and Vipul Plaza. Expanding its reach, Vipul Ltd has undertaken projects in Bhubaneswar, Ludhiana, Dharuhera, Bawal, and Faridabad.
The company reported net sales of Rs 11.26 crore in Q3FY25 compared to net sales of Rs 15.70 crore in Q2FY25. The company reported a net profit of Rs 3.73 crore in Q3FY25 compared to a net profit of Rs 1.14 crore in Q2FY25, an increase of 227 per cent. Looking at the nine-month results, the company reported net sales of Rs 42.82 crore and a net profit of Rs 6.68 crore in 9MFY25.
The company has a market cap of Rs 163 crore and has delivered good profit growth of 188 per cent CAGR over the last 5 years. The shares of the company have a PE of 0.70x and an ROE of 100 per cent. Investors should keep an eye on this low PE & high ROE penny stock under the radar.
Disclaimer: The article is for informational purposes only and not investment advice.