Low PE & high ROE stock jumps 16.55 per cent as Board announces 4:1 bonus share & announces expansion into distillery business!

The shares of the company have a PE of 10x, an ROE of 57 per cent and an ROCE of 69 per cent.

Sameera Agro and Infra Limited informed that the Board of Directors of the company at their meeting held on Monday, August 26, 2024, has considered and approved the following:

• The company's ongoing diversification into the distillery business, part of its growth strategy, is being scrutinized to ensure that the planned expansion of production capacity aligns with broader growth objectives. After careful review, the Board has given preliminary approval for the expansion. The Managing Director and CEO have been authorized to finalize the expansion plans and present them to the Board for final approval. To support the growth, the Board has also decided to include fundraising initiatives and an increase in authorized share capital in the upcoming AGM agenda for shareholder approval.
• The company proposes to issue bonus shares to its equity shareholders in a ratio of 4:1, using free reserves to capitalize the new shares. This means that for every 1 existing equity share held, shareholders will receive 4 new fully paid-up equity shares, each with a face value of Rs. 10. The bonus issue will increase the company's share capital significantly from Rs 11.91 crore to Rs 47.64 crore.

Sameera Agro and Infra Limited, established in 2002, is a diversified infrastructure and construction company. Their primary focus is on developing residential and commercial spaces, including apartments, townships, and gated communities. Additionally, they undertake infrastructure projects like bridges, flyovers, and pipelines. In 2021, the company ventured into the agri-business sector, processing, selling, and distributing agricultural commodities such as pulses and grains.

On Monday, shares of Sameera Agro and Infra Limited jumped 16.55 per cent to Rs 113 per share from its previous closing of Rs 96.95 per share. The stock’s 52-week high is Rs 185 and up by 48 per cent from its 52-week low of Rs 76 per share. The shares of the company have a PE of 10x, an ROE of 57 per cent and an ROCE of 69 per cent. The company has a market cap of over Rs 130 crore and reported positive numbers in its half-yearly results (H2FY24) and annual results (FY24). Investors should keep this stock under the radar.

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

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