This low PE high RoE multibagger small cap is trading close to its life highs!
PIX Transmissions Ltd. is the leading manufacturer of Belts and related mechanical Power Transmission products in India.
Small cap stocks are outperforming markets. Usually, small caps tend to outperform when the economy recovers from a recessionary environment. However, given the sharp run up in the broader markets, small caps are trading at high valuations and investors worry if the valuations are justified. Trick is to always find small caps with value embedded and showing strong financial results or performance.
PIX Transmission is one small cap belonging to the rubber sector that has turned out to be a multibagger over one year by multiplying little over 4 times. This four-bagger small cap company operating in the rubber industry is reflecting a high RoE of 19 (as per BSE records) and is trading at attractive 'low PE' of 15.11.
Technically the stock is trading comfortably above its 20 DMA reflecting bullishness in the counter in near term. At current prices the stock is trading close to its life highs.
PIX Transmissions Ltd. is the leading manufacturer of Belts and related mechanical Power Transmission products in India. The Company features state-of-the-art Belt manufacturing units as well as an ultra-sophisticated, automated Rubber Mixing facility. PIX Transmissions Ltd. enjoys significant brand equity in the Power Transmissions industry, with strong local as well global presence. The company has overseas subsidiary operations in Europe, and the Middle-East, in addition to over 250 Channel Partners in over 100 countries worldwide.