Synopsi:
Small-cap stocks with a PEG ratio below 1 are companies whose stock price appears undervalued relative to their expected earnings growth. These stocks often combine growth potential with attractive valuation for investors.
The PEG ratio (Price/Earnings to Growth ratio) measures a stock’s valuation by comparing its P/E ratio to its expected earnings growth. A PEG ratio below 1 generally indicates that the stock may be undervalued relative to its growth prospects, suggesting potential upside for investors.
Investing in stocks with a PEG ratio below 1 can be attractive because it indicates the stock may be undervalued relative to its expected earnings growth. Essentially, investors are paying less for each unit of growth, offering potential for higher returns if the company achieves its projected growth.
India Tourism Development Corporation Ltd (ITDC)
Established in 1966, ITDC is a public sector enterprise under the Ministry of Tourism, Government of India. It promotes tourism through services like the Ashok Group of Hotels, travel solutions, and duty-free retail. The government holds an 87.03% stake in the company.
With market capitalization of Rs. 5,317 cr, the shares of India Tourism Development Corporation Ltd are closed at Rs. 613.25 per share, from its previous close of Rs. 614.95 per share. The PEG ratio of this stock is 0.46, which indicates that the stock is trading at a price that is relatively low compared to its expected earnings growth.
Bondada Engineering Ltd
Founded in 2012, Bondada Engineering Ltd is an engineering, procurement, and construction (EPC) company specializing in telecom, renewable energy, and infrastructure projects. The company offers services such as tower manufacturing, solar structures, and civil works.
With market capitalization of Rs. 4,696 cr, the shares of Bondada Engineering Ltd are closed at Rs. 464.60 per share, from its previous close of Rs. 462.85 per share. The PEG ratio of this stock is 0.38, which indicates that the stock is trading at a price that is relatively low compared to its expected earnings growth.
Vikram Solar Ltd
Headquartered in Kolkata, Vikram Solar is one of India’s largest solar photovoltaic (PV) module manufacturers. It provides integrated solar energy solutions, including EPC services and operations & maintenance, with a global presence across six continents.
With market capitalization of Rs. 12,150 cr, the shares of Vikram Solar Ltd are closed at Rs. 336.50 per share, from its previous close of Rs. 339.10 per share. The PEG ratio of this stock is 0.7, which indicates that the stock is trading at a price that is relatively low compared to its expected earnings growth.
Crizac Ltd
Crizac Ltd is a B2B education platform that connects global institutions of higher education with recruitment agents. It offers international student recruitment solutions, serving customers worldwide
With market capitalization of Rs. 5,598 cr, the shares of Crizac Ltd are closed at Rs. 320 per share, from its previous close of Rs. 322.80 per share. The PEG ratio of this stock is 0.99, which indicates that the stock is trading at a price that is relatively low compared to its expected earnings growth.
Atlanta Electricals Ltd
Atlanta Electricals Ltd is a prominent Indian transformer manufacturer established in 1988, specializing in power, auto, inverter-duty, furnace, and special-duty transformers. With over 30 years of experience, the company operates three state-of-the-art manufacturing facilities in Anand, Gujarat, and Bengaluru, Karnataka, covering a combined area of over 3.2 lakh sq. ft.
With market capitalization of Rs. 7,890 cr, the shares of Atlanta Electricals Ltd are closed at Rs. 1,048.70 per share, from its previous close of Rs. 1,045.65 per share. The PEG ratio of this stock is 0.73, which indicates that the stock is trading at a price that is relatively low compared to its expected earnings growth.
Written by Manideep Appana
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