A small-cap multibagger stock was in the green after the company announced a 1:10 stock split. At 01:21 PM on Monday, its shares were trading at ₹ 1,772.10 apiece on the National Stock Exchange (NSE)
Sarda Energy & Minerals Limited (SEML), is a prominent company of the Sarda Group. It is engaged in the production of steel, ferro alloys and power. In addition, it offers a wide array of products, including wire rods, HB wires, ferroalloys, pellets, sponge iron, and billets.
The company informed the bourses that it has fixed Friday, August 04, 2023 as the record date for the purpose of sub-division/ split of its equity shares in the ratio of 1:10. Therefore every equity share having a face value of ₹ 10 will be subdivided into ten equity shares having the face value of ₹ 1.
Sarda Energy & Minerals’ share price increased from ₹ 701.15 to ₹ 1,772.10 apiece in a span of two years, thereby delivering multibagger returns of 152.74 percent. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares two years ago, the value of their holdings would have been ₹ 2.52 lakhs today!
With a market capitalization of ₹ 6,215 crores, Sarda Energy and Minerals is a small-cap company. It has an ideal return on equity of 18.78 percent and an ideal debt-to-equity ratio of 0.41. Its shares were trading at a price-to-earnings ratio (P/E) of 10.32, which is lower than the industry P/E of 13.94, indicating that the stock might be undervalued as compared to its peers.
The company’s promoters hold a 72.64 percent stake in it, followed by retail investors with 24.81 percent and foreign institutions with 2.55 percent.
Written by Simran Bafna
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
