Low PE high ROE multibagger penny stock below Rs 5: Board likely to announce rights issue; scrip hits back-to-back upper circuit!

Kiran Shroff
Low PE high ROE multibagger penny stock below Rs 5: Board likely to announce rights issue; scrip hits back-to-back upper circuit!

The stock gave multibagger returns of over 350 per cent in just 3 years whereas the BSE Sensex Index is up by 67 per cent.

Advik Capital Ltd informed that a meeting of the Board of Directors of the company is scheduled to be held on Saturday, September 02, 2023, at the Registered office of the company, inter-alia, to transact the following businesses:

1) To decide the various matters relating to the rights issue including terms and conditions such as the determination of the rights issue price and related payment mechanism, rights issue size, rights entitlement ratio and other matters incidental or connected therewith.

Pursuant to the approval of the Board of Directors of the company on April 11, 2023, and subsequent shareholder approval obtained through postal ballot on May 18, 2023, for the company’s proposed fund-raising program of up to Rs 50 crore in total, including the issue of fully paid-up equity shares of the company of face value of Rs 1 each (equity shares) by way of a rights issue (Rights Issue) not exceeding Rs 50 crore in single trench.

2) Any other item(s) with the permission of the Chair.

On Friday, one of the Top Gainers on BSE, shares of Advik Capital Ltd were locked in a 5 per cent upper circuit to Rs 2.57 per share from its previous closing of Rs 2.45 per share. The stock’s 52-week high is Rs 5.16 and its 52-week low is Rs 1.96.

Advik Capital Ltd is in the business of financing, inter-corporate investments and capital market activities. The company has a market cap of Rs 57 crore and has delivered good profit growth of 149 per cent CAGR over the last 5 years. The company reported positive numbers in its Quarterly Results (Q1FY24) and annual results (FY23). The stock is trading at 0.92 times its book value.

The shares of the company have a PE of 5.96x whereas the industry PE is 23.8x and an ROE of 28 per cent. The stock gave multibagger returns of over 350 per cent in just 3 years whereas the BSE Sensex Index is up by 67 per cent. Investors should keep an eye on this micro-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice. 

DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.

Rate this article:
4.2
Comments are only visible to subscribers.

Equity Research

DALAL STREET INVESTMENT JOURNAL - DEMOCRATIZING WEALTH CREATION

Principal Officer: Mr. Shashikant Singh,
Email: principalofficer@dsij.in
Tel: (+91)-20-66663800

Compliance Officer: Mr. Rajesh Padode
Email: complianceofficer@dsij.in
Tel: (+91)-20-66663800

Grievance Officer: Mr. Rajesh Padode
Email: service@dsij.in
Tel: (+91)-20-66663800

Corresponding SEBI regional/local office address- SEBI Bhavan BKC, Plot No.C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra.
Tel: +91-22-26449000 / 40459000 | Fax : +91-22-26449019-22 / 40459019-22 | E-mail : sebi@sebi.gov.in | Toll Free Investor Helpline: 1800 22 7575 | SEBI SCORES | SMARTODR