Gujarat Cotex Ltd is a small cap company with a market capitalization of ₹13 crore. The company deals in the textile industry, and today is the 14th session in a row that the stock has closed above the upper circuit. The stock hit a new 52-week high today, outperforming the sector by nearly 4%, while the quantity traded in today’s trading session was ₹7.63 lakhs. Gujarat Cotex’s stock has risen from ₹1.58 on June 9, 2021 to ₹9.80 today, a multibagger gain of 520.25 per cent in 1 year. Year-to-date (YTD), the stock has risen from ₹1.93 on January 3, 2022 to current values, representing a multibagger gain of 407.77 per cent so far in 2022.
In the last six months, the stock has risen from ₹1.45 on December 9, 2021 to ₹9.80 on June 1, 2022, 3:30 p.m. IST, a multibagger gain of 575.86 per cent, implying that the stock has consistently provided multibagger returns throughout the previous year as well as to date. So, if an investor had invested ₹1 lakh in this stock six months ago, the return amount would have been ₹5.75 lakh, and if an investor had invested one year ago, the return amount would have been ₹5.20 lakh. Similarly, if an individual had invested in Gujarat Cotex shares in the year 2022, their initial investment of ₹1 lakh would have grown to ₹4.07 lakh.
In the previous month, the stock has gained by 16.39 per cent, and in the last five trading days, it has climbed by 19.22 per cent. Even the stock has been rising over the past 11 days, with a return of almost 60% during that time. Gujarat Cotex is now trading higher than the 5 days, 20 days, 50 days, 100 days, and 200-day moving averages. The company has a P/E ratio of 13.96, indicating that the stock may perform well in the long term, but while it is a penny stock the risk is also higher, while the industry P/E stays at 23.36. The stock now has an ROE of 5.79 per cent, which is substantially lower in terms of valuations, and a P/B of 2.27 times, indicating that the stock is undervalued or that something profoundly amiss with the firm that investors should be aware of.