This low PE multibagger small-cap stock under Rs 100 witnessed a strong price volume breakout!
Interestingly, its share price has soared from Rs 16 to Rs 66 in just three years! That’s an astonishing return of over 250 per cent, making it a proven multi-bagger stock.
Despite weakness in the Indian indices on Wednesday, some Small-Cap stocks are experiencing strong buying interest at lower levels. One such trending stock is Texmo Pipe & Products, which surged over 5 per cent and has recorded huge volume. The shares of Texmo Pipe are currently trading at Rs 66 level on NSE. Interestingly, its share price has soared from Rs 16 to Rs 66 in just three years! That’s an astonishing return of over 250 per cent, making it a proven multibagger ">Multi-bagger stock. So the question remains, what are the factors that boosted investors’ confidence towards this stock?
The company works in manufacturing plastic products and advanced piping solutions for various industries. The wide range of products includes plumbing pipes, PVC pipes, HDPE pipes, and industrial casting pipes. With a market capitalisation of just Rs 190 crore, it is one of the fasting-growing small-cap companies in its industry. In the past four years, the revenue of the company is consistently on a rise and had hit Rs 565 crore last year. Its net profit and EPS grew multifold in the past few years. In its recent quarterly result, the company posted a 26 per cent jump YoY in net sales. What is more fascinating is the fact that the company has managed to increase its net profit margin on a YoY basis.
Here are some more key statistics:
|
|
Texmo Pipes & Products
|
Sector
|
|
PE ratio
|
17.70
|
35.84
|
|
PB ratio
|
0.79
|
2.70
|
In a nutshell, the stock is available at lower levels and is undervalued. Technically, the stock has been forming higher highs and higher lows on the daily timeframe, which is a bullish sign. On Wednesday, the stock registered a strong price volume breakout amid strong buying from investors. Considering such positivity, we can expect the stock to continue its bullish run for the long term. Moreover, the stock also has the potential to generate multi-bagger returns for its shareholders. Lately, foreign institutional investors’ holdings (FII holdings) have also started to show interest in this stock.
Long-term investors can include this stock on their watchlist to track its further performance!