Low PE & high ROE stock: This micro-cap company bags a new order worth Rs 8,54,00,000 from a Public Ltd Co.!

The stock is up by 55 per cent from its 52-week low of Rs 71.03 per share and down by 30 per cent from its 52-week high of Rs 155 per share.

Sunrise Efficient Marketing Ltd (SEML) has secured a massive contract worth Rs 8,54,00,000 in a brand-new business venture: graphic design and rendering services, including all necessary hardware from a Public Ltd Co. This is a significant first step for SEML, previously known for their expertise in electricals, mechanicals, electronics, and automation.

The contract involves supplying high-performance hardware like CPUs, GPUs, memory cards, storage, displays, and input devices, all carefully chosen to optimize rendering speed and image quality. SEML faced stiff competition from established domain experts, but ultimately impressed the client with their expertise and secured the lucrative deal.

This marks a bold move for SEML, expanding its reach into the specialized and competitive realm of computer graphics. Their success highlights their ability to adapt and excel in new markets, showcasing their potential for further growth and diversification.

Sunrise Efficient Marketing Ltd (BSE: 543515) is a leader in the distribution business of automation, drives, gearboxes, motors, pumps, oils & FMCG products, etc. Earlier, the shares of the company had ex-traded bonus shares in the ratio of 1:1, i.e., one bonus equity share for every one share held as of the record date. The ex-record date was September 08, 2023.

SEML has a market cap of Rs 105 crore. The net sales increased by 37.81 per cent to Rs 49.64 crore and net profit increased by 140 per cent to Rs 3.38 crore in H2FY23 over H2FY22. The net sales increased by 50.66 per cent to Rs 96.83 crore and net profit increased by 63.60 per cent to Rs 8 crore in FY23 over FY22.

The company has strategically added new feathers to its cap in terms of expanding infrastructure, the addition of new business lines and collaborating with different industry leaders. The objective is to provide high-quality and energy-efficient products and automation solutions using the latest technology to its customers.

Today, at the closing bell, shares of Sunrise Efficient Marketing surged 0.91 per cent to Rs 105 per share with an intraday high of Rs 110 and an intraday low of Rs 105. The stock has a PE of 10.6x, an ROE of 40.6 per cent and a ROCE of 39.1 per cent.

The stock is up by 55 per cent from its 52-week low of Rs 71.03 per share and down by 30 per cent from its 52-week high of Rs 155 per share. Investors should keep this micro-cap stock under the radar.

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