Synopsis:
Companies like Emami Realty, Crompton Greaves Consumer Electricals, Sarda Energy & Minerals, Kansai Nerolac Paints, and Welspun Corp are available at relatively lower P/E multiples, making them potential value picks for long-term investors.
In this article, we will look into 5 fundamentally strong stocks that are trading at attractive valuations, which you can definitely keep on your watchlist. So lets dive into it.
1. Emami
Emami Realty Limited is all about creating residential, commercial, and retail spaces across India. Its parent company, Emami, is well-known for its popular personal care and healthcare brands, including BoroPlus, Navratna, Fair and Handsome, Zandu Balm, and Kesh King.
The company’s stock is currently trading at a low P/E of 31.52x as compared to its industry average of 53.20x. Additionally, it is also trading below its 5-year and 10-year historic median P/E of 33.1x and 47.8x respectively.
2. Crompton Greaves Consumer Electricals
Crompton Greaves Consumer Electricals Limited is an Indian firm that produces and sells a broad spectrum of consumer electrical products. Its products range from fans to household and farm pumps, air and water heaters, air coolers, kitchen devices, and irons. It also deals in a range of LED and traditional light fittings, including bulbs, battens, lamps, and ceiling lights for domestic and commercial use.
The company’s stock is currently trading at a low P/E of 39.47x as compared to its industry average of 56.06x. Additionally, it is also trading below its 5-year and 10-year historic median P/E of 41.5x and 40x respectively.
3. Kansai Nerolac Paints
Kansai Nerolac Paints Limited is all about creating and providing a wide range of decorative and industrial paints, coatings, adhesives, waterproofing solutions, and construction chemicals right here in India. They cater to a variety of customers, including residential, commercial, automotive, industrial, and institutional sectors. Their product lineup features everything from wall paints and wood finishes to metal enamels and specialized coatings.
The company’s stock is currently trading at a low P/E of 31.43x as compared to its industry average of 48.07x. Additionally, it is also trading below its 5-year and 10-year historic median P/E of 53x and 51.3x respectively.
4. Welspun Corp
Welspun Corp Limited, headquartered in Mumbai, India, is one of the largest manufacturers of large-diameter pipes globally. The company also manufactures BIS-certified Steel Billets, TMT Rebars, Ductile Iron Pipes, Stainless Steel Pipes, Tubes, and Bars. It also acquired Sintex-BAPL, a market leader in water tanks and other plastic products.
The company’s stock is currently trading at a low P/E of 14.35x as compared to its industry average of 24.15x. Additionally, it is also trading below its 5-year and 10-year historic median P/E of 14.5x and 16x respectively.
5. Sarda Energy & Minerals
Sarda Energy and Minerals Ltd is the flagship company of Sarda Group. It is engaged in the production of steel, ferro alloys, and power. SEML is one of the lowest-cost producers of steel (Sponge Iron, Billets, Ferro Alloys, Mining, Power, Pellets, Iron Ore, Wire Rod Mill, Eco Bricks) and one of the largest manufacturers and exporters of ferro alloys in India.
The company’s stock is currently trading at a low P/E of 21.71x as compared to its industry average of 22.97x. However, it is trading much higher than its 5-year and 10-year historic median P/E of 8.4x and 6.7x respectively.
Written by Satyajeet Mukherjee
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