Shenergy's consistent low ROCE and increase in capital employed indicate that the business isn't deploying funds into high return investments. Given these underlying trends, the likelihood of it being a multi-bagger from here isn't high.
Shenergy's modest performance featured subdued share price rise and moderate EPS growth. Dividends, however, significantly improved total shareholder returns, leading to a careful market sentiment towards the stock.
Despite Shenergy's reinvestment, capital returns haven't risen, potentially dampening its 'multi-bagger' prospect. Market anticipates improvements based on five-year gain, but unless trends turn positive, hopes may be premature.
Shenergy Stock Forum
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