The Price-to-Earnings (P/E) Ratio is a widely used financial metric that helps investors assess the valuation of a company’s stock. It measures the relationship between a company’s current share price and its earnings per share (EPS). The P/E ratio is often used to evaluate whether a stock is overvalued, undervalued, or fairly priced relative to its earnings.
This ratio helps investors determine how much they are willing to pay for a company’s earnings, offering insight into whether a stock is overvalued or undervalued. A high P/E ratio may indicate that investors expect future growth and are willing to pay a premium for the stock, while a low P/E ratio could suggest that the stock is undervalued or that the company is underperforming.
The stocks to watch out for are listed below:
Tata Consultancy Services Ltd
TCS is a global leader in IT services and consulting, based in India. It is part of the Tata Group and offers services in IT, business solutions, and digital transformation. TCS is one of the largest IT services firms in the world, known for its focus on innovation and sustainable growth.
With a market capitalization of Rs. 12,60,505.51 crores, the stock closed at Rs. 3483.90 per share during Friday’s session, with a P/E ratio of 25.8, which is lower compared to the 3-year average P/E ratio of 30.4. The stock’s ROE stands at 51.5 percent and its ROCE at 64.3 percent. Furthermore, the Debt to equity ratio stands at 0.09.
Indian Railway Catering & Tourism Corporation Limited
IRCTC is a public sector enterprise under the Ministry of Railways in India. It provides catering, tourism, and online ticketing services for Indian Railways, and is known for revolutionizing train ticket booking in India, it operates the largest e-ticketing platform in the country.
With a market capitalization of Rs. 53,684.00 crores, the stock closed at Rs. 671.05 per share during Friday’s session, with a P/E ratio of 43.5, which is lower compared to the 3-year average P/E ratio of 62.6. The stock’s ROE stands at 40.4 percent and its ROCE at 53.8 percent. Furthermore, the Debt to equity ratio stands at 0.01.
Adani Ports & Special Economic Zone Ltd
Adani Ports and Special Economic Zone (APSEZ) is India’s largest commercial port operator, part of the Adani Group. It manages ports and logistics infrastructure across India, including major ports like Mundra. The company is a key player in India’s trade and transportation sector.
With a market capitalization of Rs. 2,31,167.27 crores, the stock closed at Rs. 1070.15 per share during Friday’s session, with a P/E ratio of 21.9, which is lower compared to the 3-year average P/E ratio of 29.6. The stock’s ROE stands at 18.1 percent and its ROCE at 12.9 percent. Furthermore, the Debt to equity ratio stands at 0.88.
Ksolves India Limited
Ksolves is a global IT services and solutions company specializing in custom software development, AI, big data analytics, and cloud computing. They focus on providing innovative digital solutions to various industries like retail, healthcare, and finance.
With a market capitalization of Rs. 957.96 crores, the stock closed at Rs. 404.00 per share during Friday’s session, with a P/E ratio of 25.3, which is lower compared to the 3-year average P/E ratio of 32.6. The stock’s ROE stands at 147 percent and its ROCE at 199 percent. Furthermore, the Debt to equity ratio stands at 0.
Written by Sridhar J
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