Low PE penny stock under Rs 2: This micro-cap electrical equipments company reports a 388 per cent jump in net profit!

The shares have a PE of 12.4x whereas the industry PE is 29x.

G G Engineering Limited manufactures electric power generators. The company develops diesel generators and engines for power management. The company announced it Quarterly Results (Q2FY24) and half-yearly results (H1FY24) for the fiscal year 2024. Here are the details:

According to the quarterly results, the revenue from operations grew by 98.39 per cent to Rs 73.24 crore, EBITDA increased by 139.77 per cent to Rs 1.27 crore and PAT increased by 53 per cent to Rs 0.75 crore in Q2FY24 compared to Q2FY23.

According to the half-yearly results, the revenue from operations grew by 405 per cent to Rs 54.87 crore, EBITDA increased by 362 per cent to Rs 8.20 and PAT increased by 388 per cent to Rs 7.30 crore in H1FY24 compared to H1FY23.

During the quarter and half year ended September 30, 2023, the company raised Rs. 49.88 crores through a rights issue by allotting 4,98,20,215 fully paid-up equity shares of face value Rs. 1 each.
The company has sold its equity investment in Teamo Production HQ Limited (formerly known as GI Engineering Limited) during the quarter and half year ended September 30, 2023. This results in a decrease in the company's investment from 24.82 per cent to 4 per cent, and Teamo Production HQ Limited is no longer an associate of the company. Due to the sale of this stake, the figures for Teamo Production HQ Limited are not included in the company's consolidated financial statements for the quarter and half year ended September 30, 2023.

The company has secured orders worth Rs 21 crore in H1FY24 to supply iron raw materials to major industrial houses that use steel as their primary raw material. The company will complete these deliveries within the next 30-45 days and is expecting additional orders for the third quarter of the current financial year 2024. The company has been working on a vertical integration strategy, expanding its role in the raw materials supply chain as well as the sales of engineering products in the steel and heavy steel sectors.

On Tuesday, shares of G G Engineering Ltd surged 2.5 per cent to an intraday high of Rs 1.23 per share from its previous closing of Rs 1.20. The stock’s 52-week high is Rs 1.80 and its 52-week low of Rs 0.74. The shares have a PE of 12.4x whereas the industry PE is 29x. The stock is up by 30 per cent in 6 months.

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