Synopsis:
Public sector undertaking stocks that are trading at a lower price-to-earnings ratio than the industry average can indicate potential investment opportunities.
Some of these stocks trade at a lower price-to-earnings ratio than the industry average. This can make them interesting for investors, as they may be undervalued compared to similar companies. It is important to study these stocks carefully to understand their potential and risks before investing.
Here are PSU stocks trading at P/E levels below the industry average:
Hindustan Aeronautics Limited
Hindustan Aeronautics Limited is a public sector enterprise involved in designing, developing, manufacturing, repairing, upgrading, and servicing a wide range of aerospace products and related components. Its operations are spread across five main complexes: Bangalore, MiG, Helicopter, Accessories, and Design. Together, these include 20 production units and 11 research and development centers located throughout India.The company has a market capitalization of Rs.3,25,887.37 crore, and closed at Rs.4,872.90, up by 1.45 percent from the previous close of Rs.4,803.15.
In Q1FY26, the company’s revenue from operations grew to Rs.4,819 crore from Rs.4,348 crore in Q1FY25, and in Q1FY26, net profit fell to Rs.1,384 crore from Rs.1,437 crore in Q1FY25.
Its return on equity is 26 percent, and return on capital employed is 33.9 percent. The company’s PE ratio stands at 38.13; the industry average is 70.44, which is cheap compared to its peer companies.
Oil and Natural Gas Corporation
Oil and Natural Gas Corporation is India’s largest crude oil and natural gas company, accounting for about 75 percent of the country’s domestic production. Its crude oil is used by downstream companies like IOC, BPCL, and HPCL to make petroleum products such as petrol, diesel, kerosene, naphtha, and LPG. The company has a market capitalization of Rs.3,06,518.50 crore, and closed at Rs.243.65, up by 0.25 percent from the previous close of Rs.243.05.
In Q1FY26, the company’s revenue from operations dropped to Rs.1,63,108 crore from Rs.1,68,968 crore in Q1FY25, and in Q1FY26, net profit grew to Rs.11,554 crore from Rs.9,776 crore in Q1FY25.
Its return on equity is 10 percent, and return on capital employed is 12 percent. The company’s PE ratio stands at 8.29; the industry average is 11.50, which is cheap compared to its peer companies.
NMDC Limited
NMDC Limited, a Navratna Public Sector Enterprise under the Ministry of Steel, Government of India, is the country’s leading iron ore producer. The company operates highly mechanized iron ore mines in Chhattisgarh and Karnataka, making it one of the most cost-effective producers globally. NMDC also runs India’s only mechanized diamond mine, located in Panna, Madhya Pradesh. The company has a market capitalization of Rs.67,828.87 crore, and closed at Rs.77.15, up by 1.33 percent from the previous close of Rs.76.14.
In Q1FY26, the company’s revenue from operations to Rs.6,739 crore from Rs.5,414 crore in Q1FY25, and in Q1FY26, net profit dropped to Rs.1,968 crore from Rs.1,969 crore in Q1FY25.
Its return on equity is 23 percent, and return on capital employed is 29 percent. The company’s PE ratio stands at 10.08; the industry average is 21.87, which is cheap compared to its peer companies.
Hindustan Petroleum Corporation Limited
Hindustan Petroleum Corporation Limited operates an MMTPA refinery in Bathinda, Punjab, holding a 49% equity share. The company also owns a stake in Mangalore Refinery & Petrochemicals Limited, which has a 15 MMTPA refinery. HPCL’s main business is crude oil refining and marketing petroleum products. The company has a market capitalization of Rs.94,900.88 crore, and closed at Rs.446, up by 2.68 percent from the previous close of Rs.434.35.
In Q1FY26, the company’s revenue from operation dropped to Rs.1,10,825 crore from Rs.1,13,888 crore in Q1FY25, and in Q1FY26, net profit grew to Rs.4,111 crore from Rs.634 crore in Q1FY25.
Its return on equity is 13 percent, and return on capital employed is 10 percent. The company’s PE ratio stands at 8.80; the industry average is 17.80, which is cheap compared to its peer companies.
Written by: Jhanavi Sivakumar
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