Low PE High ROE multibagger stock; Board announced bonus shares!

The stock is up by 35 per cent in 3 months and generated multibagger returns of over 200 per cent in just 3 years.

Bhansali Engineering Polymers Ltd informed that the Board of Directors of the company has approved bonus shares in the ratio of 2:1 i.e., 1 bonus equity share of Rs 1 each for every 2 fully paid-up equity shares of Rs 1 each held by the members of the company on record date. The company verified the record date for bonus shares as Wednesday, July 05, 2023.

Earlier, the company announced a final dividend of Rs 1 (100 per cent) per Equity Share (of the face value of Rs 1 each) and a special dividend of Rs 14 (1400 per cent) per equity share. The total final and special dividend aggregating to Rs 15 (1500 per cent). The record date for dividends was Friday, June 09, 2023.

On Friday, shares of Bhansali Engineering Polymers zoomed 1.57 per cent to Rs 129.40 per share from its previous closing of Rs 127.40 with an intraday high of Rs 132.20 and an intraday low of Rs 128.50. The stock has a 52-week high of Rs 167.25 and a 52-week low of Rs 87.15. 

Bhansali Engineering Polymers Ltd is engaged in the manufacturing and sale of ABS Resins, AES Resins, ASA resins, SAN resins and their alloys with other plastics in the Indian market. The shares of the company saw a spurt in volume by more than 2.20 times on BSE.

Talking about the financials, this chemicals sector company has a market cap of Rs 2,146.82 crore and has delivered good profit growth of 57.9 per cent CAGR over the last 5 years.

The stock has a PE of 9.76x and an ROE of 45 per cent. The stock is up by 35 per cent in 3 months and generated multibagger returns of over 200 per cent in just 3 years. Investors should keep an eye on this small-cap stock.