Low PE stock below Rs 50: Board likely to announce rights issue; declares stellar H2FY23 and FY23 results!
The stock has a PE of 10.50x whereas the sectoral PE is 33x.
REX Pipes and Cables Industries Ltd that a meeting of the Board of Directors of the company will be held on Saturday, June 10, 2023 at 1.00 PM. (IST) at the Registered office of the company situated at F-69A, RIICO Industrial Area, Sikar-332001(Rajasthan), interalia to transact the following business:
- To consider an investment in equity shares of Swastik Infracity Private Limited with a view of making it a subsidiary of the Company.
- To consider a proposal of fundraising by the issue of shares on a preferential basis/right issue basis/any other basis subject to the approval of shareholders and compliance with the applicable provision of law.
- To increase authorised share capital.
- To consider and approve the Director's Report for F.Y. 2022-23.
- To consider the Secretarial Auditor's Report for F.Y. 2022-23.
- To convene an annual general meeting (AGM) and approve the notice for the same.
- To Appoint Scrutinizers for e-voting at AGM.
- Any other business with the permission of the chair.
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Rex Pipes and Cables Industries Ltd trades in water pumps, flat cables and pipes. The net sales increased by 29.72 per cent to Rs 66.17 crore and the net profit increased by 65.37 per cent to Rs 1.75 crore in H2FY23 compared to H2FY22. The net sales increased by 15.53 per cent to Rs 117.64 and the net profit increased by 89.67 per cent to Rs 3.62 in FY23 compared to FY22.
On Thursday, shares of Rex Industries Ltd zoomed 5 per cent upper circuit to an intraday high of Rs 44.50 per share. At the closing bell, shares of the company ended the day in green, up 4.01 per cent to Rs 44.10 per share.
The stock has a PE of 10.50x whereas the sectoral PE is 33x. The stock gave 70 per cent returns in just 2 years. Investors should keep an eye on this stock.