Low PE high ROE stock: This small-cap stock is into expansion of business!
The stock has a PE multiple of 11.47 whereas the sectoral PE multiple is 22.72 and an ROE of 31.94 per cent.
R&B Denims Ltd, a Small-Cap company, informed the exchange that it is looking into major expansion with new Air Jet Looms and dobby machines.
The company has begun producing prominent luxury level denim fabric with an 85-inch width. With this technology, the company is expected to generate very good margins from its current operating margins. Currently, major brands such as Arvind, Killer, Lifestyle, Reliance Retail and others are among the company's clients.
R&B Denims Ltd is one of the most influential textile houses with the largest vertically integrated textile manufacturing facilities of over 30 million meters capacity of denim. Today, shares of R&B Denims Ltd saw a spurt in volume by more than 2.5 times on BSE.
According to the financials, the company reported positive results. The company has a market cap of 270.10 crore. In comparison to FY21, the net sales and net profit rose by 60.99 per cent and 120 per cent respectively. The stock has a PE multiple of 11.47 whereas the sectoral PE multiple is 22.72 and an ROE of 31.94 per cent.
Today, shares of R&B Denims Ltd rose 1.39 per cent to the day’s high of Rs 40.30 per cent from its previous closing of Rs 39.75. The shares of the company ended the day lower, down by 2.89 per cent to Rs 38.60 per share. Investors should keep an eye on this small-cap stock.