Synopsis:
The article features large-cap stocks from sectors such as telecommunications, automobiles, pharmaceuticals, and FMCG, each with a PEG ratio under 1.
The PEG ratio is used to evaluate a stock’s actual worth. A low PEG suggests the stock may be undervalued and appealing to investors, whereas a high PEG indicates it could be overvalued relative to its anticipated earnings growth.
A low PEG ratio is beneficial because it suggests a stock may be undervalued relative to its growth potential, offering potential long-term returns. It highlights companies with steady, sustainable growth, reduces the risk of overpaying, and helps compare firms within the same industry to identify attractive investment opportunities.
Here are some large-cap stocks with a PEG ratio of less than 1:
1. Indus Tower Limited
Indus Towers Limited is one of India’s leading telecom infrastructure providers, offering extensive network solutions to mobile operators across the country. The company focuses on building, operating, and managing telecom towers, enabling efficient connectivity and supporting the rapid growth of India’s telecommunications sector.
With a market capitalization of Rs. 90,383.46 crores, the shares of Indus Towers Limited closed at Rs. 342.60, down by 0.39 percent from its previous day closing price of Rs. 343.95.
In Q1FY25, the company reported operational revenue of Rs.7,383 crore, which increased to Rs.8,058 crore in Q1 of FY26. Net profit decreased to Rs.1,737 crore from Rs.1,926 crore over the same period. The firm’s return on equity is 32.5 percent, and return on capital employed is 29 percent, with a P/E ratio of 9.56 compared to the industry average of 19.90.The PEG ratio of the company is 0.58.
2. Maruti Suzuki Limited
Maruti Suzuki Limited is one of India’s largest car manufacturers, known for producing a wide range of vehicles, including hatchbacks, sedans, and SUVs. The company focuses on quality, innovation, and fuel-efficient cars, serving millions of customers across India and maintaining a strong presence in the domestic automobile market.
With a market capitalization of Rs. 5,14,991.42 crores, the shares of Maruti Suzuki Limited closed at Rs. 16,380, up by 0.50 percent from its previous day closing price of Rs. 16,298.
In Q1FY25, the company reported operational revenue of Rs.35,779 crore, which increased to Rs.38,605 crore in Q1 of FY26. Net profit increased to Rs.3,792 crore from Rs.3,760 crore over the same period.
The firm’s return on equity is 15.9 percent, and return on capital employed is 21.7 percent, with a P/E ratio of 35.03 compared to the industry average of 35.31. The PEG ratio of the company is 0.48.
Also Read: Smallcap stock hits 10% upper circuit after reporting 139% YoY net profit growth
3. Adani Power Limited
Adani Power Limited, a subsidiary of the Adani Group, is India’s largest private thermal power producer. Headquartered in Ahmedabad, Gujarat, APL operates a diverse portfolio of thermal and solar power plants across India. Its strategic expansions and sustainability initiatives position it as a key player in meeting the country’s growing energy demands.
With a market capitalization of Rs. 3,20,125.93 crores, the shares of Adani Power Limited closed at Rs. 166, up by 5.48 percent from its previous day closing price of Rs. 157.37.
In Q1FY25, the company reported operational revenue of Rs.14,956 crore, which decreased to Rs.14,109 crore in Q1 of FY26. Net profit decreased to Rs.3,305 crore from Rs.3,913 crore over the same period.
The firm’s return on equity is 26.1 percent, and return on capital employed is 22.5 percent, with a P/E ratio of 23.51 compared to the industry average of 23.91. The PEG ratio of the company is 0.62.
4. Dr Reddy’s Laboratories Limited
Dr. Reddy’s Laboratories Limited is a major Indian pharmaceutical company that develops, manufactures, and sells a wide range of medicines. The company focuses on generic drugs, active pharmaceutical ingredients (APIs), and specialty treatments, serving customers in India and around the world while emphasizing quality and innovation in healthcare.
With a market capitalization of Rs. 1,04,877.57 crores, the shares of Dr. Reddy’s Laboratories Limited closed at Rs. 1,256.60, up by 1.32 percent from its previous day closing price of Rs. 1,240.20.
In Q1FY25, the company reported operational revenue of Rs.7,696 crore, which increased to Rs.8,572 crore in Q1FY26. Net profit increased to Rs.1,410 crore from Rs.1,392 crore over the same period.
The firm’s return on equity is 18 percent, and return on capital employed is 22.7 percent, with a P/E ratio of 18.22 compared to the industry average of 32.14. The PEG ratio of the company is 0.48.
Written by Jhanavi Sivakumar
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