High ROE and high ROCE multibagger stock: This small-cap company receives order from Ayodhya Development Authority!

The stock gave multibagger returns of 250 per cent in just 1 year whereas BSE Small-cap Index is up by 27 per cent.

Praveg Ltd (BSE Script Code: 531637) informed that the company has received a work order from Ayodhya Development Authority, Uttar Pradesh for the development, operation, maintenance and management of Tent City along Bramha Kund at Ayodhya, Uttar Pradesh. The size of the order is a minimum of 50 tents with one restaurant and which will be executed in 10 years and may be further extendable up to 5 years.

On Friday, shares of Praveg Ltd surged 1.49 per cent to Rs 406.35 per share from its previous closing of Rs 498.90. The stock has a 52-week high of Rs 612 and a 52-week low of Rs 137.95. The shares of the company saw a spurt in volume by more than 5.65 times on BSE.

Praveg Ltd is an advertising company with core competence in exhibition and event management. The company is also engaged in providing services to the hospitality sector, publications and real estate marketing. The company has set up its branches nationally and internationally.

According to the financials, Praveg Ltd has a market cap of over 1,100 crore. In both quarterly and annual results, the company has reported excellent results. In Q4FY23, net sales increased by 12.16 per cent and net profit skyrocketed by 10.47 per cent compared to the same quarter last year(Q4FY22). The net sales increased by 87 per cent to Rs 84 crore and net profit skyrocketed 133 per cent to Rs 28 crore in FY23 over FY22.  

The stock has a ROE of 40.50 per cent and a ROCE of 53.10 per cent respectively. The stock gave multibagger returns of 250 per cent in just 1 year whereas BSE Small-Cap Index is up by 27 per cent. Investors should keep an eye on this consumer discretionary stock.

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