Low PE stock under Rs 5; Board likely to announce rights issue!
In the span of 3 years, the shares of the company gave 80 per cent returns.
Shree Ram Proteins Ltd informed that a meeting of the Board of Directors of the company is scheduled to be held on Wednesday, June 21, 2023 inter alia:
1.) To consider and approve the proposal for raising funds by way of a rights issue, to the eligible equity shareholders of the company on a right issue basis, as amended from time to time (“Right Issue”).
In reference to the below meetings:
a) To our board meeting outcome dated January 31, 2023 in which the board of directors of the company has approved the right issue up to Rs 10 crore equity shares of Rs 10 each.
b) The board meeting dated April 04, 2023, and postal ballot resolution dated May 06, 2023 company approved the stock split of equity shares from Rs 10 per share to Rs 1 per share.
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On Friday, shares of Shree Ram Proteins Ltd plunged 1.25 per cent to Rs 3.95 per share from its previous closing of Rs 4 with an intraday high of Rs 4.05 and a low of Rs 3.85.
Shree Ram Proteins Ltd is engaged in the business of edible oil and solvent extraction from various types of agro products. The company reported positive numbers in both Quarterly Results and annual results. Previously the company traded ex-split having a face value of Rs 10 each in 10 equity shares of Rs 1 each which had an ex-record date of May 16, 2023.
In the span of 3 years, the shares of the company gave 80 per cent returns. The stock has a PE of 10x whereas the sectoral PE is 38x. Do you own this micro-cap FMCG stock in your portfolio?