Low PE stock below Rs 50; Board likely to announce bonus shares!

The stock has a PE of 7.28x whereas the sectoral PE is 22.84x.

On Tuesday, the domestic indices ended the day flat. NSE Nifty-50 Index was down by 0.20 per cent at a level of 16,951.70. On the sectoral front, most of the indices were trading lower.   

Even in a weak market, shares of Swaraj Suiting Ltd surged 8 per cent to Rs 49.95 per share with intraday high of Rs 50.40 and low of Rs 48.    

Swaraj Suiting (NSE Script Code: SWARAJ) informed that a meeting of the Board of Directors of the Company will be held on Thursday, March 30, 2023, at the registered office of the company situated at F483 to F-487, RICCO Growth Centre, Hamirgarh, Bhilwara-311025, Rajasthan to consider and approve the following businesses along with other routine businesses:   

1. To Increase the Authorized Share Capital of the company;  

2. To approve and recommend issue of Bonus Shares to the equity shareholders of the Company;  

3. Any other business with permission of the Chairman  

Swaraj Suiting is presently, primarily engaged in the manufacturing of grey fabric involving cotton and synthetic, trading of yarn, grey fabric and finished fabric and weaving on job work basis.  

According to the financials, this Small and Medium Enterprises (SME) company has a market cap of Rs 35.97 crore. The corporation reported a positive number on the quarterly and annual financial statements. The stock has a PE of 7.28x whereas the sectoral PE is 22.84x.

The stock has a 52-week high of Rs 86 and a 52-week low of Rs 40.25. Investors should keep an eye on this SME stock.