Low PE high ROE multibagger stock: This small-cap company commissions project through special purpose vehicle (SPV)!

The stock generated multibagger returns of 165.61 per cent from the day it was listed on BSE

Meghmani Finechem Ltd informed that the company is setting up of wind solar hybrid power plant of 18.34 MW through a special purpose vehicle i.e., ReNew Green (GJS Three) Private Limited. The company additionally update that the said plant has been commissioned and power flow is started. This is MFL's step towards green energy and reducing its carbon footprint.

On Wednesday, shares of Meghmani Finechem Ltd plunged 0.73 per cent to Rs 1,107.95 per share with an intraday high of Rs 1,133 and an intraday low of Rs 1,096.30. The stock generated multibagger returns of 165.61 per cent from the day it was listed on BSE (i.e. August 20, 2021).

Meghmani Finechem Limited (MFL) is part of the Ahmedabad-based Meghmani Group. The company is primarily engaged in manufacturing and selling chlor alkali & its derivatives with backward and forward integration facilities and trades agrochemical products.

The company has a market cap of over Rs 4,500 crore. According to its Quarterly Results and annual results, the company reported excellent numbers and has delivered good profit growth of 18.30 per cent CAGR over the last 5 years

The stock has a PE of 13.10x, a ROE of 33.40 per cent and a ROCE of 32.10 per cent. Investors should keep an eye on this small-cap stock.