This Low priced stock with Low PE and High ROE is turning out to be a multi-bagger!

Often investors are attracted to the low price stocks as investors perceive these set of stocks to provide faster returns, even though there is no empirical evidence to suggest such theory. 

With the bull market in place it is common to see stocks fly sky high. What one has to be careful about is it to watch if the high flying stock is backed by improving fundamentals. Often investors are attracted to the low price stocks as investors perceive these set of stocks to provide faster returns, even though there is no empirical evidence to suggest such theory. 

Sal Steel is one such Low Price stock that looks attarctive from valaution point of view with the PE trading at close to 11.2 and teh ROE close to ~59 levels. This high ROE and Low PE stock is catching investors attention as it attempts to breach its multiyear resistance level of ~ Rs 16 per share. Available at Rs 16 per share Sal Steel is already trading at a 10 year high. The company has delivered good profit growth of 31.59% CAGR over last 5 years while it has also reduced its debt. The share price of Sal Steel is up by 280 per cent in 2021 alone while in one month the stock has gained by 130 per cent. In past one year the share price of Sal Steel has jumped by more than 503 per cent.

SAL Steel is engaged in manufacturing Sponge Iron, Ferro Alloys and power and the products manufactured by the company are sold in the domestic market as well as international market.