Mukul Agrawal’s portfolio multibagger stock in green after Government of Chhattisgarh granted permission for capacity extension; stock trades at low PE & high ROE!
The stock gave multibagger returns of 180 per cent from its 52-week low of Rs 90.99 per share.
On Friday, shares of Sarda Engineering Ltd gained per cent from its previous closing of Rs 248 per share to an intraday high of Rs 258 per share. At the closing bell, shares of the company were trading at Rs 249.75 per share, up 0.71 per cent with a spurt in volume by more than 1.01 times on BSE.
The sudden rise in the stock price was mainly due to the company announcing that Chhattisgarh Environment Conservation Board, Raipur has granted to the Company, under the Water (Prevention and Control of Pollution) Act, 1974 and the Air (Prevention and Control of Pollution) Act, 1981, the consent to operate the enhanced capacity of its existing iron ore pellet plant from existing 8,00,000 tonnes per annum to 9,00,000 tonnes per annum.
The company is making significant progress on several key projects to expand its production capacity and generate renewable energy. The Wire Rod Mill's expansion project has already received approval, increasing its capacity from 1,80,000 MT to 2,50,000 MT. Construction of the 24.9 MW Hydro Power plant on the Rehar River in Chhattisgarh has commenced, with completion expected within the next financial year. Additionally, the Coal Washery is undergoing a capacity expansion from 0.96 MTPA to 1.8 MTPA. These initiatives demonstrate the company's commitment to growth and sustainability.
Incorporated in 1973, Sarda Energy & Minerals Limited (SEML) is the flagship company of Sarda Group and is engaged in the production of steel, ferro alloys and power. The company has a market cap of over Rs 8,500 crore and has delivered good profit growth of 23.8 per cent CAGR over the last 5 years. As of September 2023, an ace investor, Mukul Agrawal owns 1.19 per cent and his investment in this stock have gained over 100 per cent.
The shares of the company have a PE of 15x, an ROE of 20 per cent and an ROCE of 21 per cent. The stock gave multibagger returns of 180 per cent from its 52-week low of Rs 90.99 per share. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
DSIJ’s 'Multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.