This low PE small-cap multibagger stock witnessed strong buying recently! Do you hold it?
The shares of this company have soared over 1,000 per cent in the past three years thereby, making it a multi-bagger!Â
Finding a multibagger gem can be, of course, very rewarding! Eyeing strong growth sectors, along with positive cash flow and earnings make a company get strong attraction from investors. Apart from this, what matters the most is the price that the investor is willing to pay. So here, we are going to talk about a multi-bagger stock with an attractive valuation that has seen fresh buying interest lately from investors.
This Small-Cap company belongs to the textile sector and has a strong presence as the preferred supplier of flexible packaging films in India. It is a part of Nahar Group, which is a conglomerate with diversified interests in the textile industry. By this time, you must have guessed it, right? It is Nahar Poly Films Limited!
Talking about the stock's performance, it has soared over 1,000 per cent in the last three years, making it a proven multi-bagger! It has increased its shareholders’ value by over ten times. What is quite fascinating is its valuation as the stock is available at an undervalued price! On Monday, fresh interest was seen in buying this undervalued stock as it jumped over 6 per cent along with a huge spurt in the volume of over seven times. A strong price volume breakout has been witnessed and is one of the top trending stocks. Currently, the share price of Nahar Poly Films is being traded at Rs 380 on NSE.
Fundamentally, the company has posted strong growth results this quarter. Its net sales have jumped 113 per cent YoY to Rs 224 crore while the net profit zoomed 60 per cent YoY to Rs 24 crore. Interestingly, the net profit has grown consistently for the past five years, which boosted investors’ confidence. Moreover, the company pays an annual dividend yield of 0.70 per cent.
Here are some key statistics of the company:
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Company
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Industry
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PE
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8.93
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12.73
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PB
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1.03
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5.94
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Dividend yield (in per cent)
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0.70
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0.57
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For a company to grow multifold, growing earnings along with strong business management are the key requisites.
With a market capitalisation of less than Rs 1,000 crore, Nahar Poly Films has strong potential for long-term growth. Long-term investors can include this stock on their watchlist!