Low PE penny stock under Rs 10: Heavy buying witnessed in this power stock; hit 10 per cent upper circuit!

The stock is up by 75 per cent in just 3 months whereas BSE Sensex Index is up by 5.57 per cent.

The stock market was in the green on Wednesday, with the benchmark Sensex up 214 points, or 0.33 per cent, to 65,433 and the Nifty-50 up 48 points, or 0.25 per cent, to 19,444. About 2,080 shares advanced, 1,541 declined and 162 were unchanged on the BSE.

Along with the market in green, shares of RattanIndia Power Limited surged 10 per cent upper circuit to Rs 5.46 per share from its previous closing of Rs 4.97. The shares of the company saw a spurt in volume by more than 1.16 times on BSE. The stock’s 52-week high is Rs 6.08 and its 52-week low is Rs 2.82.

Earlier, RattanIndia Power fully repaid its senior debt to international financial institutions with a new loan of Rs 1,114 crores from Kotak Mahindra Bank. The company has been steadily repaying its debt since 2019, and its operational performance remains strong.

The company's consolidated Quarterly Results showed net sales of Rs 847 crore and a net loss of Rs 549 crore. However, the company's standalone quarterly results showed net sales of Rs 847 crore and a net profit of Rs 42 crore. The shares of the company have a PE of 10.25x whereas the industry PE is 34.3x.

RattanIndia Power Limited is one of India’s largest private power generation companies, with an installed capacity of 2,700 MW thermal power plants at Amravati and Nashik (1,350 MW at each location) in Maharashtra, India. The company has a market cap of over Rs 2,900 crore and has delivered good profit growth of 22.5 per cent CAGR over the last 5 years.

The stock is trading at 0.51 times its book value of Rs 10.4 each. The stock is up by 75 per cent in just 3 months whereas BSE Sensex Index is up by 5.57 per cent. Investors should keep an eye on this Small-Cap power company.

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