Synopsis:
These small-cap stocks are backed by strong fundamentals and trading below the industry P/E, demonstrating consistent financial performance and growth potential. They often operate efficiently within their sectors, offering investors opportunities for value-based investment.
Stocks trading below the industry P/E, these stocks indicate attractive valuations relative to peers. They combine growth prospects with solid fundamentals, making them suitable for investors seeking long-term appreciation while mitigating overvaluation risks.
Sarda Energy & Minerals Ltd
Sarda Energy & Minerals Ltd (SEML) is an Indian company engaged in the production and sale of metallurgical-grade coal, power, and ferro-alloys, catering primarily to the steel and power sectors. With a focus on captive coal mining and power generation, SEML emphasizes self-sufficiency and cost efficiency in its operations.
With market capitalization of Rs. 20,014 cr, the shares of Sarda Energy & Minerals Ltd are closed at Rs. 567.65 per share, from its previous close of Rs. 571.25 per share. The stock is valued at a P/E of 21.4, which is below the industry PE of 22.8. The company reported a ROCE of 15.3% and a ROE of 13.4%.
Engineers India Ltd
Engineers India Ltd is a government-owned engineering and consultancy company, providing design, project management, and execution services across the oil, gas, and infrastructure sectors. It is known for its expertise in large-scale industrial projects and strong technical capabilities.
With market capitalization of Rs. 11,395 cr, the shares of Engineers India Ltd are closed at Rs. 202.89 per share, from its previous close of Rs. 202.43 per share. The stock is valued at a P/E of 20.6, which is below the industry PE of 21.6. The company has reported a healthy ROCE of 25.0% and ROE of 23.2%, supported by a reduction in debt. The company has delivered strong profit growth of 61% CAGR over the past three years
Jupiter Wagons Ltd
Jupiter Wagons Ltd is an Indian manufacturing company specializing in freight and passenger rail wagons, along with components for the rail and industrial sectors. It focuses on innovation, quality, and expanding its presence in domestic and international markets.
With market capitalization of Rs. 14,193 cr, the shares of Jupiter Wagons Ltd are closed at Rs. 334.40 per share, from its previous close of Rs. 335.80 per share. The stock is valued at a P/E of 44.8, which is below the industry PE of 47.8. The company has delivered strong profit growth of 125% CAGR over the past five years, with a ROCE of 21.5% and ROE of 17.0%.
Written by Manideep Appana
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