Picking up stocks that strike a balance between growth and value can be tricky. The PEG ratio relates a company’s Price to Earnings Ratio to its expected earnings growth, and helps to identify undervalued opportunities. Stocks with a low PEG ratio often offer strong growth potential at a reasonable price.
PEG Ratio
The PEG ratio helps assess a stock’s true value. A low PEG indicates that the stock is undervalued, making it attractive for investors, while a high PEG indicates the stock is priced above its expected earnings growth.
The following are the low PEG ratio stocks worth investing are:
Zen Technologies Limited
Zen Technologies Limited is engaged in developing combat training and counter-drone solutions for India’s defense and security forces. It has its presence in Hyderabad,UAE, and USA.
With a market capitalization of Rs.13,296.16 crores, the shares of the company were trading at Rs.1,472.60, down by 0.33 percent from its previous day closing price of Rs.1,479.20.
In Q1FY26, the company posted revenue of Rs. 158 crore, a decline of 38 percent YoY and 51 percent QoQ, reflecting weak top-line performance. Net profit fell to Rs. 53 crore, down 33 percent YoY and 53 percent QoQ, signaling lower operational efficiency.
The PE ratio of the company is 52.79, and the PEG ratio is 0.13, indicating the stock may be undervalued relative to its expected earnings growth.
Suzlon Energy Limited
Suzlon is a major global player in renewable energy solutions. It is engaged in making turbines and covers the design, development, and production of key components such as rotor blades, towers, generators, control systems, gears, and nacelles.
With a market capitalization of Rs.79,592.37 crores, the shares of the company were trading at Rs.58.07, up by 0.35 percent from its previous closing price of Rs.57.87.
In Q1FY26, the company posted revenue of Rs.3132 crores, a surge of 55 percent YoY and a decline of 17 percent QoQ. Net profit surged to Rs.324 crores, up by 7 percent YoY and a decline of 72 percent QoQ.The PE ratio of the company is 37.71, and the PEG ratio is 0.19, indicating the stock may be undervalued relative to its expected earnings growth.
Natco Pharma Limited
Natco Pharma Limited is a pharmaceutical company. It is engaged in generics, oncology, and complex medicines. The company has a global presence, with over 50 countries, with key markets including the US, India, Canada, and Brazil.
With a market capitalization of Rs.15,358.67 crores, the shares of the company were trading at Rs.857.50, up by 0.47 percent from its previous day closing price of Rs.853.15.
In Q1FY26, the company posted revenue of Rs.1329 crores, a decline of 2 percent YoY and a surge of 9 percent QoQ. Net profit declined to Rs.480 crores, down by 28 percent YoY and a surge of 18 percent QoQ. The PE ratio of the company is 9.05, and the PEG ratio is 0.06, indicating the stock may be undervalued relative to its expected earnings growth.
Bharti Airtel Limited
Bharti Airtel Ltd is one of the world’s leading providers of telecommunication services with presence in 18 countries representing India, SriLanka, 14 countries in Africa. It operates through five segments: Mobile Services, Homes Services, Digital TV Services, Airtel Business, and South Asia.
With a market capitalization of Rs.10,79,380.023 crores, the shares of the company were trading at Rs.1,892.95, down by 0.18 percent from its previous day closing price of Rs.1,896.40.
In Q1FY26, the company posted revenue of Rs.49,463 crores, a surge of 28 percent YoY and a surge of 3 percent QoQ. Net profit surged to Rs.7422 crores, up by 57 percent YoY and a decline of 40 percent QoQ. The PE ratio of the company is 38.54, and the PEG ratio is 0.46, indicating the stock may be undervalued relative to its expected earnings growth.
Bharat Petroleum Corporation Ltd
Bharat Petroleum Corporation, a public sector enterprise. It is engaged in refining crude oil and distributing petroleum products. The company has its presence with refineries in Mumbai, Kochi, and Madhya Pradesh.
With a market capitalization of Rs.1,37,160.70 crores, the shares of the company were trading at Rs.316.15, up by 1.12 percent from its previous day closing price of Rs.312.65.
In Q1FY26, the company posted revenue of Rs. 1,12,551 crores, a decrease of 0.5 percent YoY and a decline of 1 percent QoQ. Net profit surged to Rs.6839 crores, up by 140 percent YoY and a surge of 55 percent QoQ. The PE ratio of the company is 7.83, and the PEG ratio is 0.75, indicating the stock may be undervalued relative to its expected earnings growth.
Written by: Jhanavi Sivakumar
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