The price-to-earnings (PE) ratio is a key financial metric that helps investors understand how much they are paying for a company’s earnings. A lower PE ratio, especially compared to historical averages, can indicate that a stock is undervalued.
This article highlights five financially strong small-cap companies whose current PE ratios are below their 5-year average. This may present a good opportunity for value investors looking to invest in stable businesses at attractive valuations.
Here are a few financially strong small-cap stocks with PE ratios below their 5-year average
Crompton Greaves Consumer Electricals Ltd
With a market capitalization of Rs. 22,129.22 crore, the shares of Crompton Greaves Consumer Electricals Limited closed at Rs. 343.70 per equity share, down nearly 1.76 percent from its previous day’s close price of Rs. 349.85.
The company’s trailing twelve months (TTM) price-to-earnings (PE) ratio is currently 40, which is lower than its 3-year average PE of 41.4 and significantly below its 5-year average PE of 41.5, indicating a valuation discount.
Crompton Greaves Consumer Electricals Limited was established in 2016 after demerging from Crompton Greaves Limited and is engaged in manufacturing and marketing LED lighting, fans, pumps, water heaters, air coolers, and kitchen appliances, serving Indian and global consumer electrical markets.
Crompton Greaves Consumer Electricals Limited’s revenue has increased from Rs. 1,961 crore in Q4 FY24 to Rs. 2,061 crore in Q4 FY25, which has grown by 5.10 percent. The net profit has also grown by 29.32 percent from Rs. 133 crore in Q4 FY24 to Rs. 172 crore in Q4 FY25.
Jyoti Resins and Adhesives Limited
With a market capitalization of Rs. 1,744.08 crore, the shares of Jyoti Resins and Adhesives Limited closed at Rs. 1,453.40 per equity share, down nearly 2.11 percent from its previous day’s close price of Rs. 1,484.75.
The company’s trailing twelve months (TTM) price-to-earnings (PE) ratio is currently 22.2, which is lower than its 3-year average PE of 30.5 and significantly below its 5-year average PE of 25.7, indicating a valuation discount.
Jyoti Resins and Adhesives Limited was established in 1993 and is engaged in manufacturing synthetic resin adhesives and specialty wood glues, notably the EURO 7000 brand, with advanced R&D, innovation, and a strong market presence in India and abroad
Jyoti Resins and Adhesives Limited’s revenue has increased from Rs. 71 crore in Q4 FY24 to Rs. 79 crore in Q4 FY25, which has grown by 11.27 percent. The net profit has also grown by 5.26 percent from Rs. 19 crore in Q4 FY24 to Rs. 20 crore in Q4 FY25.
Genus Power Infrastructures Limited
With a market capitalization of Rs. 11,151.12 crore, the shares of Genus Power Infrastructures Limited closed at Rs. 366.90 per equity share, down nearly 2.73 percent from its previous day’s close price of Rs. 377.20.
The company’s trailing twelve months (TTM) price-to-earnings (PE) ratio is currently 38.3, which is lower than its 3-year average PE of 84 and significantly below its 5-year average PE of 67.5, indicating a valuation discount.
Genus Power Infrastructures Limited was established in 1992 and is engaged in manufacturing and providing advanced electricity meters, smart metering solutions, engineering, procurement, and turnkey power infrastructure projects, including transmission, distribution, and rural electrification across India.
Genus Power Infrastructures Limited’s revenue has increased from Rs. 420 crore in Q4 FY24 to Rs. 937 crore in Q4 FY25, which has grown by 123.10 percent. The net profit has also grown by 316.13 percent from Rs. 31 crore in Q4 FY24 to Rs. 129 crore in Q4 FY25.
Skipper Limited
With a market capitalization of Rs. 5,543.21 crore, the shares of Skipper Limited closed at Rs. 491.05 per equity share, down nearly 2.02 percent from its previous day’s close price of Rs. 501.15.
The company’s trailing twelve months (TTM) price-to-earnings (PE) ratio is currently 37.9, which is lower than its 3-year average PE of 43.6 and significantly below its 5-year average PE of 39.4, indicating a valuation discount.
Skipper Limited was established in 1981 and is headquartered in Kolkata. The company is engaged in manufacturing power transmission and distribution towers, telecom and railway structures, and polymer pipes and fittings, serving infrastructure, utility, and agriculture sectors across over 50 countries.
Skipper Limited’s revenue has increased from Rs. 1,154 crore in Q4 FY24 to Rs. 1,288 crore in Q4 FY25, which has grown by 11.61 percent. The net profit has also grown by 92 percent from Rs. 25 crore in Q4 FY24 to Rs. 48 crore in Q4 FY25.
BLS International Services Limited
With a market capitalization of Rs. 15,732.62 crore, the shares of BLS International Services Limited closed at Rs. 382.10 per equity share, down nearly 0.89 percent from its previous day’s close price of Rs. 385.55.
The company’s trailing twelve months (TTM) price-to-earnings (PE) ratio is currently 31.3, which is lower than its 3-year average PE of 43.6 and significantly below its 5-year average PE of 37.1, indicating a valuation discount.
BLS International Services Limited was established in 2005 and is engaged in providing visa, passport, consular, e-governance, attestation, biometric, e-visa, and citizen services. The company operates globally for 46 governments across more than 70 countries with tech-enabled solutions.
BLS International Services Limited’s revenue has increased from Rs. 448 crore in Q4 FY24 to Rs. 693 crore in Q4 FY25, which has grown by 54.69 percent. The net profit has also grown by 70.59 percent from Rs. 85 crore in Q4 FY24 to Rs. 145 crore in Q4 FY25.
Written By – Nikhil Naik
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