Investing in stocks with strong fundamentals and a low PEG ratio can offer good growth at a fair price. A PEG ratio below 0.5 means they may be undervalued compared to their future growth potential. In this article, we highlight five fundamentally strong companies with PEG ratios under 0.5, offering both stability and growth opportunities.
Here are a few fundamentally strong stocks that have a Price/Earnings to Growth (PEG) ratio of less than 0.5
Shilchar Technologie Limited
With a market capitalization of Rs. 5,897.37 crore, the shares of Shilchar Technologies Limited were currently trading at Rs. 5,145 per equity share, down nearly 0.50 percent from its previous day’s close price of Rs. 5,170.60.
Shilchar Technologies Limited’s revenue has increased from Rs. 397 crore in FY24 to Rs. 623 crore in FY25, which has grown by 56.93 percent. The net profit has also grown by 59.78 percent from Rs. 92 crore in FY24 to Rs. 147 crore in FY25.
Shilchar Technologies Limited’s revenue and net profit have grown at a CAGR of 54.4 percent and 136.19 percent, respectively, over the last five years. The company’s ROCE and ROE should be 71.3 percent and 52.9 percent, respectively. The company has a PEG ratio of 0.34.
Shilchar Technologies Limited was incorporated on January 13, 1986, and is headquartered in Vadodara, Gujarat. The company is a power and distribution transformer manufacturer, producing R‑core, ferrite, and utility transformers up to 50 MVA/132 kV. It serves sectors like utilities, renewable energy, cement, steel, and exports to over 20 countries.
Alpex Solar Limited
With a market capitalization of Rs. 3,049.39 crore, the shares of Alpex Solar Limited were currently trading at Rs. 1,246 per equity share, down nearly 1.30 percent from its previous day’s close price of Rs. 1,262.35.
Alpex Solar Limited’s revenue has increased from Rs. 413 crore in FY24 to Rs. 780 crore in FY25, which has grown by 88.86 percent. The net profit has also grown by 207.41 percent from Rs. 27 crore in FY24 to Rs. 83 crore in FY25.
Alpex Solar Limited’s revenue and net profit have grown at a CAGR of 51.42 percent and 94.26 percent, respectively, over the last five years. The company’s ROCE and ROE should be 51.8 percent and 48.1 percent, respectively. The company has a PEG ratio of 0.03.
Alpex Solar Limited was established in 1993 and is based in Noida, Uttar Pradesh. The company manufactures solar photovoltaic modules using monocrystalline and polycrystalline technologies, providing EPC solar solutions, solar pumps, and contract manufacturing for leading energy companies across India.
Transformers and Rectifiers India Limited
With a market capitalization of Rs. 15,090.84 crore, the shares of Transformers and Rectifiers India Limited were currently trading at Rs. 503.60 per equity share, rising nearly 2.50 percent from its previous day’s close price of Rs. 491.30.
Transformers and Rectifiers India Limited’s revenue has increased from Rs. 1,291 crore in FY24 to Rs. 2,017 crore in FY25, which has grown by 56.24 percent. The net profit has also grown by 359.57 percent from Rs. 47 crore in FY24 to Rs. 216 crore in FY25.
Transformers and Rectifiers India Limited’s revenue and net profit have grown at a CAGR of 23.54 percent and 193.02 percent, respectively, over the last five years. The company’s ROCE and ROE should be 28 percent and 23.4 percent, respectively. The company has a PEG ratio of 0.39.
Transformers and Rectifiers India Limited was established in 1994 and is headquartered in Ahmedabad, Gujarat. Transformers and Rectifiers India Limited makes power, furnace, and rectifier transformers. It serves domestic and global markets with high-quality, custom transformers for power generation, transmission, distribution, and industries, using advanced manufacturing facilities.
Shriram Pistons and Rings Limited
With a market capitalization of Rs. 10,439.81 crore, the shares of Shriram Pistons and Rings Limited were currently trading at Rs. 2,370 per equity share, down nearly 0.98 percent from its previous day’s close price of Rs. 2,393.45.
Shriram Pistons and Rings Limited’s revenue has increased from Rs. 3,089 crore in FY24 to Rs. 3,550 crore in FY25, which has grown by 14.92 percent. The net profit has also grown by 17.54 percent from Rs. 439 crore in FY24 to Rs. 516 crore in FY25.
Shriram Pistons and Rings Limited’s revenue and net profit have grown at a CAGR of 17.18 percent and 47.86 percent, respectively, over the last five years. The company’s ROCE and ROE should be 25.7 percent and 23.2 percent, respectively. The company has a PEG ratio of 0.43.
Shriram Pistons and Rings Limited was established in 1963 and is based in New Delhi. The company manufactures pistons, piston rings, and cylinder liners for the automotive, tractor, and diesel engine industries, supplying leading original equipment manufacturers across India with quality and precision engineering.
Action Construction Equipment Limited
With a market capitalization of Rs. 12,267.36 crore, the shares of Action Construction Equipment Limited were currently trading at Rs. 1,030.15 per equity share, down nearly 4.42 percent from its previous day’s close price of Rs. 1,077.75.
Action Construction Equipment Limited’s revenue has increased from Rs. 2,914 crore in FY24 to Rs. 3,327 crore in FY25, which has grown by 14.17 percent. The net profit has also grown by 24.70 percent from Rs. 328 crore in FY24 to Rs. 409 crore in FY25.
Action Construction Equipment Limited’s revenue and net profit have grown at a CAGR of 23.54 percent and 51.06 percent, respectively, over the last five years. The company’s ROCE and ROE should be 40.3 percent and 28.8 percent, respectively. The company has a PEG ratio of 0.50.
Action Construction Equipment Limited was established in 1995 and manufactures material handling and construction equipment, like cranes, loaders, forklifts, tractors, and road machinery, serving India’s infrastructure, agriculture, logistics, and construction sectors as an industry leader.
Written By – Nikhil Naik
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