This multibagger small-cap looks undervalued, trading near the 200-day EMA; a stock with strong fundamentals and 400 per cent returns in 3 years!

The stock appears undervalued at a mere PE ratio of 15.1 against the industry average of 28.4, presenting a compelling opportunity for investors seeking growth at a reasonable price.

The stock price is trading just above its 200-day EMA, which may be a good investment opportunity as the stock's fundamentals are very impressive, with a Piotrowski score of 9 and a G factor of 4. The stock has declined by 22.76 per cent from its all-time high. As we can see in the chart, the stock price is just near the 200-day EMA and a previous resistance that may have turn into a strong support. It is expected that the stock may bounce back from these levels, as it has already respected those levels. Investor Education and Protection Fund Authority, Ministry of Corporate Affairs, has invested in this stock.

Financial Snapshot

Steelcast Ltd, a shining star in the market has significantly reduced its debt, positioning itself as nearly debt-free. One of the key highlights is the remarkable profit growth, boasting an impressive 27.4 per cent Compound Annual Growth Rate (CAGR) over the last 5 years. Investors, hungry for stability and returns, will find solace in the company's robust Return on Equity (ROE) track record, with a commendable 25.4 per cent over the last 3 years.

Furthermore, Steelcast Ltd's commitment to shareholder value is evident in its consistent and healthy dividend payout of 23.4 per cent.

The stock appears undervalued at a mere P/E ratio of 15.1 against the industry average of 28.4, presenting a compelling opportunity for investors seeking growth at a reasonable price. With a market capitalization of Rs 1,174 crore and a current price of Rs 580, this Small-Cap stands as a beacon of financial strength, poised for further success.

Stock Performance

The one-year return of 25.94 per cent reflects a steady and positive momentum. Looking at the three-year performance, the stock has given multibagger returns of 411.51 per cent. The five-year return of 282.96 per cent further solidifies the company's position as a formidable player in the market.

About company

Steelcast Limited (SCL) is engaged in the business of manufacturing Steel and Alloy Steel Castings catering to a host of OEMs for diverse industrial sectors.

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