The Price-to-Earnings Growth (PEG) ratio is a financial metric that combines a company’s price-to-earnings (P/E) ratio with its earnings growth rate. It is calculated by dividing the P/E ratio by the company’s expected earnings growth rate.
A PEG ratio of 1 is generally considered to indicate that a stock is fairly valued, as the price aligns with the company’s growth rate. A ratio below 1 suggests that the stock may be undervalued relative to its growth potential, while a ratio above 1 could indicate overvaluation.
The stocks to watch out for
NBCC Limited
NBCC (India) Limited, a Navratna Public Sector Enterprise under the Ministry of Housing and Urban Affairs, is a leading player in the construction and infrastructure sector. It operates across three main segments: Project Management Consultancy (PMC), Engineering Procurement & Construction (EPC), and Real Estate Development.
With a market capitalization of Rs. 29,511.00 crores, the company’s PEG ratio stood at 0.99, with an ROE of 25.9 percent and ROCE of 33.5 percent, along with a debt-to-equity ratio of 0, showcasing strong overall financial performance metrics.
National Aluminium Company Ltd
National Aluminium Company Limited (NALCO) is an Indian public sector undertaking (PSU) engaged in the business of mining, manufacturing, and selling alumina and aluminum. It is known for its integrated operations, encompassing bauxite mining, alumina refining, aluminum smelting, and power generation.
With a market capitalization of Rs. 35,557.19 crores, the company’s PEG ratio stood at 0.06, with an ROE of 32.7 percent and ROCE of 44.0 percent, along with a debt-to-equity ratio of 0.01, showcasing strong overall financial performance metrics.
Rajoo Engineers Ltd
Rajoo Engineers Ltd. is an Indian company specializing in the design, manufacture, and sale of plastic extrusion machinery and post-extrusion equipment. It has grown to become a market leader in India for blown film lines, sheet lines, thermoforming, and extrusion coating and laminating lines.
With a market capitalization of Rs. 2,054.77 crores, the company’s PEG ratio stood at 0.52, with an ROE of 26.3 percent and ROCE of 32.8 percent, along with a debt-to-equity ratio of 0, showcasing strong overall financial performance metrics.
International Conveyors Ltd
International Conveyors Limited (ICL) is a leading Indian manufacturer of PVC (Polyvinyl Chloride) conveyor belting solutions. The company specializes in solid woven, fabric-reinforced, PVC impregnated, and PVC covered fire-retardant anti-static conveyor belting.
With a market capitalization of Rs. 612.29 crores, the company’s PEG ratio stood at 0.11, with an ROE of 28.9 percent and ROCE of 29.5 percent, along with a debt-to-equity ratio of 0.24, showcasing strong overall financial performance metrics.
Garuda Construction and Engineering Ltd
Garuda Construction and Engineering Ltd is a growing civil construction company based in Mumbai, India, that provides end-to-end construction services for various projects, including residential, commercial, infrastructure, and industrial buildings. They also offer additional services for infrastructure and hospitality projects.
With a market capitalization of Rs. 1,583.57 crores, the company’s PEG ratio stood at 0.23, with an ROE of 22.1 percent and ROCE of 30.1 percent, along with a debt-to-equity ratio of 0, showcasing strong overall financial performance metrics.
Written by Sridhar J
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