Low PE high ROE stock below Rs 100: This micro-cap iron manufacturing company receives order worth Rs 3.98 crore from Boilcon Enterprise!

The stock is up by 95 per cent from its 52-week low of Rs 40.1 per share.

Chaman Metallics Limited informed the exchange (NSE scrip code - SM: CMNL) that the company has been awarded a work order for fabrication, erection and assistance in the commissioning of pressure parts, structure, ducting & piping project for 35 TPH WHRB & 70 TPH AFBC boiler under expansion project.

The company received the order from Boilcon Enterprise. The order is worth Rs 3.98 crore and will be completed within 1 year (approx.) from the date of commissioning of work.

Today at the closing bell, shares of Chaman Metallics Limited plunged 0.72 per cent to Rs 75.60 per share with an intraday high of Rs 78 and an intraday low of Rs 74.6.

Chaman Metallics Limited is primarily engaged in the business of manufacturing and selling Direct Reduced Iron (i.e., sponge iron). Sponge iron is mainly used as a raw material for making steel in electric arc furnaces and induction furnaces.

Talking about the financials, the company has a market cap of over Rs 180 crore. In H2FY23, the net sales increased by 4.5 per cent to Rs 116 crore and net profit increased by 43 per cent to Rs 10 crore compared to H2FY22. The net sales increased by 24 per cent to Rs 228 crore and net profit increased by 89 per cent to Rs 17 crore

The shares of the company have a PE of 10.7x, an ROE of 44.9 per cent and a ROCE of 40.6x. The stock is up by 95 per cent from its 52-week low of Rs 40.1 per share. Investors should keep micro-cap iron manufacturing company’s stock.

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