Investors wish to receive maximum returns on their investments. Many of them do this by investing in value stocks. This works in a similar way to buying something at a price lower than its actual value and selling it later at a higher price.
Many factors are considered to find value stocks. These include a company’s long-term plans, studying its capital structure and financial ratios, using relative valuation techniques, assessing the quality of management decisions and more. However, here are a few companies shortlisted on the basis of multiple parameters. These include price-to-earnings (P/E ratio), dividend yield, debt to equity, promoter holdings and more.
Bhansali Engineering Polymers Ltd
Bhansali Engineering Polymers Ltd manufactures and sells ABS Resins, AES Resins, ASA resins, SAN resins and their alloys with other plastics in the Indian market. It is a small-cap company with a market capitalization of ₹ 1,759 crores and its shares were trading at ₹ 105.85 apiece on Tuesday.
Its shares were trading at a price-to-equity ratio (P/E) of 7.39, which is significantly lower than the industry P/E of 13.64. It has an excellent return on equity of 42.11 percent.
The company’s revenue grew at a 3-year CAGR of 6.68 percent and net profit at a 3-year CAGR of 174.05 percent. It is debt free and has a good dividend yield of 3.77 percent. Its promoters hold a 56.64 percent stake in the company and 42.54 percent is held by retail investors.
INEOS Styrolution India Ltd
INEOS Styrolution India produces styrenics plastic with a focus on styrene monomer, polystyrene, ABS Standard and styrenics specialities. It is a part of one of INEOS, one of the largest chemical companies in the world. It has a market capitalization of 1,386 crores and its shares were trading at ₹ 796.15 apiece on Tuesday.
Its shares were trading at a price-to-equity ratio (P/E) of 5.39, which is significantly lower than the industry P/E of 14.23. It has an excellent return on equity of 36.96 percent.
The company’s revenue grew at a 3-year CAGR of 2.09 percent and net profit at a 3-year CAGR of 408.58 percent. It has an ideal debt-to-equity ratio of 0.07 and an excellent dividend yield of 13.75 percent. Its promoters hold a 61.19 percent stake in the company, retail investors hold 33.22 percent and mutual funds hold a 4.01 percent stake in it.
Manali Petrochemicals Ltd
The Chennai-based company manufactures and sells Propylene Oxide (PO), Propylene Glycol (PG) and Polyols (PY), which are used as industrial raw materials. It has a market capitalization of ₹ 1389 crores and is a small-cap company. Its shares closed at ₹ 76.90 apiece on Tuesday.
The company’s shares were trading at a price-to-equity ratio (P/E) of 5.99, which is significantly lower than the industry P/E of 14.23. It has an excellent return on equity of 44.56 percent.
Its revenue grew at a 3-year CAGR of 43.65 percent and net profit at a 3-year CAGR of 123.06 percent. Further, it has an ideal debt-to-equity ratio of 0.07 and a good dividend yield of 3.10 percent. Its promoters hold a 44.86 percent stake in the company, retail investors hold 52.87 percent and foreign institutions hold 2.24 percent, and mutual funds hold 0.03 percent.
Written by Simran Bafna
