Sunil Singhania bought 34,63,970 shares of this multibagger engineering company; stock trades at low PE and high ROE & ROCE!

The stock gave multibagger returns of 140 per cent in just 1 year and a whopping 350 per cent in 3 years.

Indian stock markets closed higher on Tuesday, with the BSE Sensex gaining 0.32 per cent at 71,337 and NSE Nifty-50 indices gaining 0.43 per cent at 21,441. The NSE market capitalization for the listed company as of December 26, 2023, stands at Rs 355.39 lakh crore.  

Along with the market in green, one multibagger engineering stock was locked in a 5 per cent upper circuit to Rs 1,341.30 per share from its previous closing of Rs 1,277.45. The stock’s 52-week high is Rs 2,391.80 and its 52-week low is Rs 948.90.

The stock name is SHRIRAM PISTONS & RINGS LIMITED.

Shriram Pistons & Rings Ltd reigns supreme in crafting essential engine components like pistons, pins, rings, and valves, catering to both domestic and international auto giants. Their extensive arsenal boasts a wide range of these critical parts, ensuring engines purr smoothly across the globe.

The company has a market cap of Rs 5,900 crore. The company reported amazing numbers in its Quarterly Results and annual results. In the current financial year, the shares of the company ex-traded bonus issue of shares in the ratio of 1:1. The ex-date for bonus shares was Tuesday, June 06, 2023.

An ace investor, Sunil Singhania through its fund, i.e., Abakkus Diversified Fund, bought a total of 34,63,970 shares stake at an average trading price of Rs 1,103.6 per share via a block deal on December 20, 2023 as per data available on NSE.

The shares of the company have a PE of 15x, an ROE of 21 per cent and an ROCE of 25 per cent. The stock gave multibagger returns of 140 per cent in just 1 year and a whopping 350 per cent in 3 years.

Do you own Shriram Pistons & Rings Ltd.’s stock in your portfolio? Do let us know in the comments below

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