Low PE multibagger stock: The small-cap company receives an order worth Rs 262 crore from ONGC!

The stock is up by 8.50 per cent in just 5 days and over 19 per cent in just 1 month.

Maharashtra Seamless informed the exchanges (BSE Script Code: 500265; NSE Script Code: MAHSEAMLES) that the company has received an order from ONGC Limited with basic value of Rs 262 crore approx. for supply of seamless tubing pipes and accessories. The order will be delivered to Gujarat, Rajasthan, West Bengal, Assam and Tripura within 42 weeks, as needed by ONGC Ltd.  

Stock Update: On Monday, shares of Maharashtra Seamless Ltd surged 4.72 per cent to Rs 424.25 per share from its previous closing of Rs 405.05. The stock has a 52-week high of Rs 455 and a 52-week low of Rs 262.50.   

Maharashtra Seamless Limited, incorporated in 1988, is engaged in the business of manufacturing of steel pipes and tubes. It is also engaged in power generation.  

Talking about the financials, this BSE Small-Cap company has a market cap of over Rs 5,000 crore. The net sales rose by 17.56 per cent and net profit rose by 65.39 per cent in Q3FY23 over Q3FY22. In FY22, net sales were 2x and net profit was 4x over FY21. Additionally, the company had declared bonus share in the ratio 1:1 on November 11, 2022 and previously declared dividend of Rs 5 per share which had a record date as September 07, 2022.  

The stock has a PE of 9.04x and an ROE of 12 per cent with 1-year CAGR of 37 per cent. The stock gave multibagger returns of over 215 per cent in just 3 years. Investors should keep an eye on this stock.