Low PE high ROE multibagger penny stock below Rs 5; Board approved allotment of 20,79,60,320 rights issue in the ratio of 17:18!

The stock gave multibagger returns of 520 per cent in just 3 years whereas the BSE Sensex Index is up by 64 per cent.

Advik Capital Ltd informed that a meeting of the Board of Directors of the company has approved rights issue in the ratio of 17:18 i.e., 17 equity shares for every 18 equity shares held by the eligible equity shareholders of the company as on the record date with the right to renounce. The Board approved 20,79,60,320 equity shares of face value of Rs 1 each at a price of Rs 2.40 per rights equity share (including premium of Rs 1.40 per share) for an amount aggregating up to Rs 4,991.04 lakh.

The rights issue record date was Thursday, September 07, 2023, and the issue price is Rs 2.40 per equity share (Including a premium of Rs 1.40 per share). The issue opening date was Monday, September 18, 2023 and the closing date was Friday, September 29, 2023. With this allotment, the paid-up capital of the company increased to 42,81,53,600 shares.

Advik Capital Ltd is in the business of financing, inter-corporate investments and capital market activities. The company has a market cap of Rs 109 crore and has delivered good profit growth of 149 per cent CAGR over the last 5 years. The company reported positive numbers in its Quarterly Results (Q1FY24) and annual results (FY23).

The stock’s 52-week high is Rs 5.01 and its 52-week low is Rs 1.90. The shares of the company have a PE of 11.5x whereas the industry PE is 24x and an ROE of 28 per cent.

The stock gave multibagger returns of 520 per cent in just 3 years whereas the BSE Sensex Index is up by 64 per cent. Investors should keep an eye on this micro-cap stock.

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