With a market capitalization of ₹ 386 crores and a market price of ₹ 18.35, SBC Exports Ltd is a penny stock. The company is engaged in the business of manufacturing garments, supplying manpower and tour operator services.
The textile manufacturer’s shares gave multibagger returns of 112.14% in the past six months as its share price increased from ₹ 8.65 to ₹ 18.35 apiece. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares six months ago, the value of their holdings would have been ₹ 2.12 lakhs today!
Similarly, it gave multibagger returns of 208.83% in the past year as its share price increased from ₹ 6.00 to ₹ 18.35. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares one year ago, the value of their holdings would have been ₹ 3.05 lakhs today!
The company’s revenue grew at a 5 year CAGR of 42.58% from ₹ 28.66 crores in 2017 to ₹ 168.85 crores in 2022. Similarly, its net profit grew at a 5-year CAGR of 46.40% from ₹ 0.51 crores in 2017 to ₹ 3.43 crores in 2022. In the month of March 2023 alone, the company received various orders aggregating to ₹ 3.21 crores.
SBC Exports has a return on equity of 14.15% and an EPS (TTTM) of 0.26. It has a book value of 1.43 and its shares were trading at price-to earnings ratio 69.29, which is higher than the industry P/E of 61.90, indicating that the stock is overvalued as compared to its peers.
Written by Simran Bafna
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