Low PE high ROE multibagger stock: Don’t miss the action in this power stock that receives a project of 140 MW!

The stock gave multibagger returns of 231 per cent from its 52-week low of Rs 70.35 per share.

K.P. Energy Ltd (BSE Script Code: 539686) announced that the company has successfully completed the development activities and charged the 140MW power evacuation system for the wind-solar hybrid power project at Fulsar site in Taluka Talaja, District Bhavnagar, Gujarat. The power evacuation system comprised of 140MW hybrid Pooling Sub-station, 66kv Extra High Voltage Line and the 66kv bay at the Shelavadar Grid Sub-station. The 140MW power evacuation system is developed by KP Energy for ABREL EPC Limited (Aditya Birla Company) at Fulsar site for wind-solar hybrid power project under the Gujarat Wind-Solar Hybrid Power Policy 2018.

Today, shares of K.P. Energy Ltd zoomed 5.47 per cent to an intraday high of Rs 244.70 per share. The stock also traded at a new 52-week high of Rs 244.70. The stock gave multibagger returns of 231 per cent from its 52-week low of Rs 74 per share.

K.P. Energy Limited is a balance of plant (BoP) solution provider for the wind energy industry. The company engages throughout the development process of wind farms, right from conceptualization until the commissioning of the project. The shares of the company saw a spurt in volume by more than 2 times on BSE.

Talking about finances, this power company has a market cap of Rs 516 crore. The net sales increased by 38 per cent and the net profit increased by 200.71 per cent with EPS of Rs 6.76 in Q4FY23 compared to Q4FY22. The net sales increased by 74.86 per cent and the net profit increased by 146.59 per cent with EPS of Rs 19.75 in FY23 compared to FY22.     

The company has also announced a stock split in the ratio 2:1 as of the record date which was Friday, March 10, 2023. The stock has a PE of 12.34x whereas the sectoral PE is 23x with an ROE of 34.81. Investors should keep a close eye on this Small-Cap stock.