Low PE multibagger penny stock below Rs 10: Board announced rights issue; know the record date!

The stock gave multibagger returns of 475 per cent in the span of 3 years whereas BSE Sensex Index is up by 71.49 per cent.

Bhandari Hosiery Exports Ltd informed that the Board of Directors of the company have announced a rights issue in the ratio of 3:26 i.e., 3 rights equity share of Rs 1 each for every 26 equity shares of Rs 1 each held by the equity shareholders in the company as on the record date (eligible equity shareholders) with the right to renounce.

The company fixed the record date as Wednesday, September 13, 2023, with an issue price is Rs 4.50 per rights equity share (including a premium of Rs 3.50 per rights equity share) aggregating to Rs 7.61 crore. The issue opening date is Wednesday, September 20, 2023 and the closing date is Tuesday, October 03, 2023.

Bhandari Hosiery Exports Ltd is a part of the Bhandari group. It is a fully integrated textile company which specializes in circular knitted manufacturing. The company is engaged in the design, development, knitting, dyeing, finishing, and garments and provides fashion supplies for retailers and brands worldwide. The company has a market cap of over Rs 100 crore

On Tuesday, shares of Bhandari Hosiery Exports Ltd plunged 1.14 per cent to Rs 6.96 per share with an intraday high of Rs 7.13 and an intraday low of Rs 6.75.

The shares of the company have a PE of 15x whereas the industry PE is 30x. The stock is trading at Rs 1.18 times its book value of Rs 5.95 each. The stock gave multibagger returns of 475 per cent in the span of 3 years whereas BSE Sensex Index is up by 71.49 per cent. Investors should keep an eye on this micro-cap stock.

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