Low PE stock below Rs 2: Shares of this micro-cap company hits upper circuit; here’s why!

Net sales increased 6x and net profit increased 21x QoQ, while net sales increased 7x and net profit increased 35x YoY.

The domestic indices on Friday ended the trading session flat. BSE Sensex Index was up 0.03 per cent to a level of 59,655.  

Despite the market ending the day flat, shares of G G Engineering Ltd hit 10 per cent upper circuit to Rs 1.23 per share. At 3:30 pm, shares of the company ended the day lower, down 3.57 per cent to Rs 1.08 per share.    

The reason behind the sudden rise in stock price is due to the excellent Quarterly Results and annual results announced by the company. The net sales rose by 493 per cent and net profit rose to 2,018 per cent in Q4FY23 over Q4FY22. In FY23, net sales skyrocketed 558 per cent and net profit skyrocketed 3,404 per cent over FY22.  

G G Engineering Limited manufactures electric power generators. The company develops diesel generators and engines for power management. G G Engineering offers punching, forming, shearing, bending, fabrication, welding and assembly services. The stock has a PE of 13.06x whereas the sectoral PE is 27x.  

The stock is up by 19.41 per cent in 5 days and 28.12 per cent in just 1 month. Heavy buying was seen on this micro-cap stock and saw a spurt in volume by more than 6.04 times on BSE. On April 21, 2023, "Bhavya Dhiman" brought 69,63,220 shares at Rs 1.13 per share of the company aggregating to Rs 0.79 crore via a bulk deal. 

This penny stock should be kept under the radar.