Low PE High ROE stock: This small-cap company is nearly doubling its capacity!
The stock has a PE multiple of 9.11 whereas the sectoral PE multiple is 16.3 and an ROE of 26.53 per cent.
Uttam Sugar Mills Ltd has recently informed both the exchanges i.e., BSE & NSE that the company will increase/enhance the "Distillery Capacity (Ethanol)" from 150 kilo liters per day (KLPD) to 250 kilo liters per day (KLPD) at Barkartpur plant of the company for a total project cost of Rs 56 crore which will be financed through internal accruals /loans and completed by December 2023.
The company will also increase/improve its "Cane Crushing Capacity" from 23750 tonnes per day (TCD) to 26200 tonnes per day (TCD) and improve its energy efficiency for a total project cost of Rs 40 crore, which will be financed through internal accruals/loans and completed by November 2023.
Today, shares of Uttam Sugar Mills Ltd soared 1.22 per cent to Rs 309.15 per share from its previous closing of Rs 305.45. Shares of the company saw a spurt in volume by more than 2.56 times on BSE.
Uttam Sugar Mills Ltd has a market cap of Rs 1,163.93 crore. The company is engaged in manufacturing sugar, industrial alcohol and generating power. The stock has a PE multiple of 9.11 whereas the sectoral PE multiple is 16.3 and an ROE of 26.53 per cent.
According to the financial statements, net sales increased by 14.41 per cent in H1FY23 compared to H1FY22 and net profit was Rs. 27.56 crore. Comparing FY21 to FY22, net sales increased by 11.86 per cent. The net profit barely reached Rs 59.76 crore in FY21 but it skyrocketed by 125.77 per cent to Rs 134.92 crore in FY22.