This Low PE micro-cap Company with outstanding Q4 results trades at a fresh 52-Week high

Sri Nachammai Cotton Mills is one micro-cap company trading at below industry average PE of 9.52 which has declared outstanding results in this quarter.

It is a known fact that the companies which report extraordinary profits tend to outperform. Investors are always hunting for opportunities where they can identify stocks that surprise with positive earnings or in other words declare profits which are above estimates. It is seen that the impact of ‘above estimates profits’ is higher on low liquid stocks which are mostly small caps and micro caps. 

Sri Nachammai Cotton Mills is one micro-cap company trading at below industry average PE of 9.52 which has declared outstanding results in this quarter. Its profit after tax jumped by a whopping 1056 per cent on YoY to Rs 2.87 crore.

The company’s ability to manage interest payment is improving as the operating profits to interest ratio increase by little over four times. With rising sales and improving operating profit margins and a manifold jump in profit after tax Sri Nachammai Cotton Mills finds itself in a sweet spot.

The stock made a fresh 52-Week high on Thursday at Rs 22.15 per share. The stock is up by nearly 86.60 per cent on YTD basis while in one year the stock is up by more than 111 per cent. On Thursday there were only buyers in the stock with no seller willing to part with their holdings. 

Sri Nachammai Cotton Mills Ltd. ventures in producing cotton yarn. The company manufactures combed, carded and compact cotton hosiery and hank yarn of counts.