Low PE high ROE stock below Rs 70: This micro-cap iron manufacturing company awarded an order worth Rs 2.35 crore to Thermax Ltd!

The stock is up over 70 per cent from its 52-week low of Rs 40.1 per share.

Chaman Metallics Limited informed the exchange (NSE scrip code - SM: CMNL) that the company has awarded a work order for design, engineering, manufacture, factory testing (if applicable), loading, supply, packing and forwarding, transportation and supervision of erection and commissioning of the water treatment plant.

The company awarded the order to Thermax Ltd. The order is worth Rs 2.35 crore and will be completed within 4-5 months (approx.) from the date of payment of the first advance.

On Friday at the closing bell, shares of Chaman Metallics Limited plunged 1.79 per cent to Rs 68.55 per share with an intraday high of Rs 70.25 and an intraday low of Rs 68.05.

Chaman Metallics Limited is primarily engaged in the business of manufacturing and selling Direct Reduced Iron (i.e., sponge iron). Sponge iron is mainly used as a raw material for making steel in electric arc furnaces and induction furnaces. The shares of the company have a PE of 9.72x, an ROE of 29.6 per cent and an ROCE of 31.6 per cent.

Talking about the financials, the company has a market cap of Rs 165.45 crore. In H2FY23, the net sales increased by 4.5 per cent to Rs 116 crore and net profit increased by 43 per cent to Rs 10 crore compared to H2FY22. The net sales increased by 24 per cent to Rs 228 crore and net profit increased by 89 per cent to Rs 17 crore

The stock is up over 70 per cent from its 52-week low of Rs 40.1 per share. Investors should keep micro-cap iron manufacturing company’s stock.

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