Low PE high ROE stock below Rs 120; Board announces bonus shares!

Low PE high ROE stock below Rs 120; Board announces bonus shares!

Kiran Shroff

The stock is up by 14.5 per cent from its 52-week low of Rs 101.90 per share and down by 24.74 per cent from its 52-week high of Rs 155.

Sunrise Efficient Marketing Ltd (BSE: 543515) informed that the Board of Directors of the company has recommended the issue of bonus shares in the ratio of 1:2 [ i.e., 1 bonus equity shares of Rs 10 each for every 2 fully paid-up equity shares held as on record date].

Pre-Bonus - Share Capital: - 1,00,00,000 shares of Rs 10 each aggregating to Rs. 10,00,00,000.

Post Bonus – Share Capital: - 1,50,00,000 shares of Rs 10 each aggregating to Rs. 15,00,00,000.

SEML's expertise in industrial oils and lubricants has led to rapid success, propelling them to the No. 2 position in the Indian market for M/s Gulf Ltd. Now, SEML is boldly venturing into the lucrative automotive oil segment, confident in its strategic approach and the leadership of a seasoned industry executive. With India poised to become the world's largest automobile market, this expansion holds immense potential.

SEML anticipates reaching numerous retailers and workshops with GS Caltex products. Building this infrastructure could attract partnerships with other major automotive companies, fuelling further growth for SEML's automotive division. GS Caltex, a Korean American collaboration with a strong international presence, provides a competitive edge through its high-quality base oil and unique product offerings.

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Founded in 2002, Sunrise Efficient Marketing Ltd (SEML) is a distributor supplying various industrial and electronic components like motors, gearboxes, lubricants, lighting, and automation products. They partner with diverse brands like Redicon, Elecon, Kirloskar, Lubi, and Yaskawa, and cater to manufacturers and industries requiring energy-efficient solutions.

SEML has a market cap of Rs 116.65 crore. The net sales increased by 37.81 per cent to Rs 49.64 crore and net profit increased by 140 per cent to Rs 3.38 crore in H2FY23 over H2FY22. The net sales increased by 50.66 per cent to Rs 96.83 crore and net profit increased by 63.60 per cent to Rs 8 crore in FY23 over FY22.

Today, at the closing bell, shares of Sunrise Efficient Marketing plunged 6.49 per cent to Rs 116.65 per share with an intraday high of Rs 128.25 and an intraday low of Rs 116. The stock has a PE of 12x, an ROE of 40.6 per cent and a ROCE of 39.1 per cent. The stock is up by 14.5 per cent from its 52-week low of Rs 101.90 per share and down by 24.74 per cent from its 52-week high of Rs 155.

Disclaimer: The article is for informational purposes only and not investment advice. 

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