This Low PE Small Cap has more than doubled in just 2 months

The stock is outperforming on bourses and has more than doubled in two months. The profit after tax has grown by more than 633 per cent in the March,21 quarter.

PE ratio is one of the most widely used ratios that help us understand the valuation of the company. Often low PE stocks are considered to have value and are expected to have high margin of safety. Low PE ratio however does not guarantee good returns. It is just an indicator which says one can look at the stock for further evaluation as it is not trading at expensive valuations.

Cheviot Co is one such low PE stock that can be considered for further evaluation. The stock is outperforming on bourses and has more than doubled in two months. The profit after tax has grown by more than 633 per cent in the March,21 quarter. The company has been maintaining a healthy dividend pay-out of 70.25 per cent. Cheviot co has reported a profit growth (CAGR) of 16 per cent for a five year period.

The stock is comfortably trading above its 20 DMA and 50 DMA. Looking at the improving financials and bullish technical set up, this small cap company can be part of your watch list. In over one year the stock is up by more than 159 per cent.

The company manufactures and exports jute yarns and fabrics in India and internationally and operate  in two business segments namely Jute goods and Captive power generation.