Best Low PE Mid Cap Stocks: The most common buyer psychology is to get more for less money, isn’t it? But most of them are neither ready to pay more nor ready to comprise in quality. The same applies to stocks also, and this is where stock P/E comes into the picture. Low P/E stocks indicate greater potential for growth of the company.
Adding on to the above point, many industry experts suggest that investment in the mid-cap is a less risky option as they are not volatile as a small-cap stock. Further, they also yield better returns with their huge growth potential in the market.
Therefore, in this article on the best low PE Mid Cap Stocks in India, let us see a few best stocks under this category.
Best Low PE Mid Cap Stocks in India
In this article on the best low PE Mid Cap stocks in India, we will take a look at a few best stocks under this category and learn about their business, financial performance and more. Keep reading to find out!
Best Low PE Mid Cap Stocks #1 – Sun TV Network
Sun TV Network is an Indian media company, which is a part of Sun Group, a media conglomerate. Initially, the company was established in 1992 in Chennai, Tamil Nadu by Kalanithi Maran and now it is a household name in the country.
Further, it is one of the largest television networks in Asia, with over 33 television channels in 6 languages including Tamil, Telugu, Kannada, Malayalam, Marathi, and Bengali with 140 million plus users across the country.
The media house also provides new-age media services including DTH service under the name “Sun Direct” and OTT Platform services under the name “Sun Next” mobile app. Additionally, it owns around 69 FM radio stations, 3 daily newspapers, 6 magazines, and also the IPL franchise.
Furthermore, the financials of the company has shown significant growth in terms of revenue and net profit. The sales of the company grew up by 5.25% in the last year from Rs 3,584 Crs to Rs 3,772 Crs. Likewise, the net profits have increased from Rs 1,650 Crs to Rs 1,703 Crs.
Above all, the entertainment industry has always got growth potential according to the latest technology right from television to OTT platforms. The company is also debt free for the last 5 years which indicates the strong fundamentals of the company.
Additionally, it is a low P/E mid-cap stock with a stock P/E of 10.38 which is less than the industry P/E of 23.74. Therefore, it implies that the stock is less expensive compared to its peers.
|CMP (In Rs)||472.2||Market Cap (in Rs Crs)||18,159|
|Stock P/E||10.62||Sector P/E||23.74|
|EPS (In Rs)||43.3||ROE (in %)||18.4|
|ROCE (in %)||24.49||Book Value (In Rs)||235.27|
|Promoter Holding (%)||75||Price to Book Value||1.92|
|Debt Equity Ratio||0||Face value (in Rs)||5|
Best Low PE Mid Cap Stocks #2 – Tata Chemicals Ltd
Tata Chemicals Ltd is a subsidiary company of Tata Group which is an Indian conglomerate that was established in 1939 in India. The company is basically engaged in the production of basic chemistry and specialty products.
In terms of production, the company is the 3rd largest soda ash manufacturer and the 6th largest sodium bicarbonate manufacturer in the world.
Further, the company also has manufacturing facilities in various countries like the US, the UK, and Kenya. The products of the company include basic chemistry products like soda ash, sodium bicarbonate, marine chemicals, and many more. It also produces Specialty products related to agro sciences, nutritional sciences, and material sciences.
The net profits of the company have almost surged by a whopping 75% from Rs 1,400 Crs to Rs 2,452 Crs for the last year and the revenues are also up by 33% from FY22 to FY23. Additionally, it has also been yielding good returns on equity for the last 3 years with an ROE of 11.74 for FY23.
Above all, the company has given decent Dividends Per Share (DPS) consistently for the past 3 years and has grown from Rs 10 to Rs 17.50 Furthermore, it is a low P/E stock indicating higher growth potential in the future.
To sum up, we see a robust financial performance of the company for the last financial year. All the key metrics like Sales, net profit, Dividend Per Share, and Return On Equity have increased over the last 3 years post the global pandemic.
|CMP (In Rs)||994.95||Market Cap (in Rs Crs)||25,375|
|Stock P/E||10.95||Sector P/E||11.21|
|EPS (In Rs)||91.15||ROE (in %)||11.74|
|ROCE (in %)||10.43||Book Value (In Rs)||774.1|
|Promoter Holding (%)||37.98||Price to Book Value||1.3|
|Debt Equity Ratio||0.31||Face value (in Rs)||10|
Best Low PE Mid Cap Stocks #3 – Oil India Limited (OIL)
Oil India Limited is a Public Sector Undertaking (PSU) under the Ministry of Petroleum and Natural Gas, Government of India that is engaged in the business of extraction and production of crude oil, natural gas, and LPG. It was established in 1889 and presently it is the second-largest national Oil and gas company in India.
The company has over 2000 km of trunk and feeder pipeline with in-house operation and maintenance. Further, it operates an 1157 Km long crude oil pipeline in the North East for transportation of crude oil produced by both OIL and ONGC in the region.
Besides its crude oil pipeline, Oil India Limited has also diversified into the Renewable & Alternate Energy sector, installing and commissioning RE projects in the Wind and Solar domains with a total installed capacity of 188.10 MW.
The financial prudence of the company has been ascribed by top international and national rating agencies like CRISIL, Moody’s, Fitch Ratings, and CareEdge.
The revenues of the company have increased from Rs 16,428 Crs to Rs 24,758 Crs and Net profits have increased from Rs 3,887 Crs to Rs 6,810 Crs from FY22 to FY23.
Subsequently, the company is also giving worthy returns to its shareholders, with a good EPS of Rs 80.49 and a dividend yield of 7.8 %. To wrap up, it is currently trading at a low P/E of 3.18 and high ROE of 22.68 compared to its peers, which signals growth potential in the future.
|CMP (In Rs)||255.2||Market Cap (in Rs Crs)||27,869|
|Stock P/E||3.19||Sector P/E||5.8|
|EPS (In Rs)||80.49||ROE (in %)||22.68|
|ROCE (in %)||21.5||Book Value (In Rs)||354.8|
|Promoter Holding (%)||56.66||Price to Book Value||0.73|
|Debt Equity Ratio||0.48||Face value (in Rs)||10|
Best Low PE Mid Cap Stocks #4 – General Insurance Corporation Of India (GIC)
General Insurance Corporation Of India is a company incorporated to render reinsurance services to general insurance companies in India. It was incorporated in 1972 by the Government for the purpose of controlling, carrying, and superintending on the business of general insurance. The company is ranked as the 15th largest global reinsurer group.
GIC was formed as an outcome of the nationalization of the general insurance business when the government of India took over the shares of 55 Indian insurance companies. Later, when GIC was incorporated, the government transferred all the shares it had acquired to GIC.
GIC is engaged in the business of domestic reinsurance, international reinsurance, and overseas.
As far as the financials are concerned, the company has made sales of Rs 43,502 Crs in FY23 from various general reinsurances like marine insurance, fire insurance, life insurance, and miscellaneous insurance.
The net profits of the company have increased from Rs 2,198 Crs to Rs 6,577 Crs from FY22 to FY23. It is a debt-free stock with decent returns ROE and ROCE of 19.18% and 11.9% respectively.
The EPS of the stock has also been increasing for the last 3 years from Rs 11.35 in FY21 to Rs 39.37 in FY23. It has a stock P/E of 4.6 which is lesser than the sector P/E of 5.03 and a dividend yield of 3.9%
|CMP (In Rs)||192.1||Market Cap (in Rs Crs)||33,368|
|Stock P/E||4.83||Sector P/E||5.03|
|EPS (In Rs)||39.37||ROE (in %)||19.18|
|ROCE (in %)||11.9||Book Value (In Rs)||205|
|Promoter Holding (%)||85.78||Price to Book Value||0.89|
|Debt Equity Ratio||0||Face value (in Rs)||5|
Best Low PE Mid Cap Stocks #5 – Bank Of Maharashtra
Bank of Maharashtra is a public sector bank that is engaged in rendering banking services. It was established in 1935 in Pune, Maharashtra, India. The service segments of the bank include retail banking, corporate banking, wholesale banking, internet banking, and other banking operations.
Bank of Maharashtra has been continuously expanding its presence in PAN India. As of March 2023, it has over 2203 branches across the country.
Proceeding to the financials of the bank, it can be seen that the net profits of the bank have been increasing continuously for the last 4 years from Rs 389 Crs to Rs 2,603 Crs from FY20 to FY23.
More specifically, Non-Performing Assets (NPA) has reduced in the last 5 years from 5.52% to 0.25% from FY19 to FY23 which is a positive sign. Return on Equity has increased from 11.45% to 20.38% from FY22 to FY23.
|CMP (In Rs)||31.9||Market Cap (in Rs Crs)||22,313|
|Stock P/E||7.36||Sector P/E||9.62|
|EPS (In Rs)||3.87||ROE (in %)||16.49|
|ROCE (in %)||2.34||Book Value (In Rs)||21.27|
|Promoter Holding (%)||90.97||Price to Book Value||1.34|
|CASA Ratio(%)||53||Face value (in Rs)||10|
List Of Top 10 Low PE Mid Cap Stocks in India
|Company Name||CMP (In Rs)||Stock P/E||Sector P/E|
|Sun TV Network||472.2||10.62||23.74|
|Tata Chemicals Ltd||994.95||10.9||11.21|
|Oil India Limited||255.2||3.19||5.8|
|General Insurance Corporation Of India Ltd||192.1||4.83||5.03|
|Bank Of Maharashtra||31.9||7.36||9.62|
|L&T Finance Holdings Ltd||133.15||20.26||24.03|
|LIC Housing Finance Ltd||395.4||7.2||19.3|
In this article on the best low PE Mid Cap Stocks in India, we have discussed some of the best stocks from different sectors of the economy. Here we have considered stock P/E as a metric to screen the stocks, which helps us to know whether the stock is rightly valued. Anyways, stock P/E is not the only metric to analyze a stock performance. One can check various leverage, growth, and many more ratios to get more clarity.
Let us know which is your favorite mid-cap stock pick in the comments section below and happy reading!
Written by Bhagyalakshmi Patil
By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions.
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