The PEG ratio (Price/Earnings to Growth ratio) is a valuation metric that compares a company’s P/E ratio to its expected earnings growth rate, helping investors assess whether a stock is overvalued or undervalued.
A PEG ratio below 1.0 suggests the stock may be undervalued relative to its growth potential, while a ratio above 1.0 indicates it may be overvalued.
Return on Equity (ROE) is a financial metric that measures a company’s profitability by revealing how much profit it generates with shareholders’ equity. A higher ROE suggests efficient management and strong financial performance, indicating that the company effectively utilises investor funds to generate earnings.
Here are few Micro-cap stocks trading at PEG below 1 and high ROE:
Athena Global Technologies Ltd
With a market capitalization of Rs.138 crores, Athena Global Technologies Ltd’s share price closed at Rs.98.56 per share on Friday, rising around 2.5 percent compared to its previous close.
The stock is trading at a PEG of 0.14. In terms of return ratios ROE (Return on Equity) stands at 218 percent and ROCE (Return on Capital Employed) stands at 124 percent.
In Q1 FY25, Athena Global Technologies Ltd. posted a 24 percent YoY increase in revenue to Rs.4.17 crore. The company also reduced its net losses to Rs.4.74 crore, down from Rs.6.17 crore in the same period last year.
Athena Global Technologies Ltd. is a software development company specialising in digital transformation and IT services, with a focus on client-centric solutions and innovative technologies.
One Global Service Provider Ltd
With a market capitalization of Rs.109 crores, One Global Service Provider Ltd’s share price closed at Rs.153.80 per share on Friday, rising around 1 percent compared to its previous close.
The stock is trading at a PEG of 0.15. In terms of return ratios ROE (Return on Equity) stands at 65.6 percent and ROCE (Return on Capital Employed) stands at 84.8 percent.
In Q1 FY25, the company posted a 8.3 percent YoY increase in revenue to Rs.13.56 crore and net profits rose 80 percent to Rs.1.76 crore in the same period.
One Global Service Provider Ltd is a Life Sciences and Healthcare Solutions provider specialising in mass screening, diagnostics, and healthcare sciences. Its services are utilised by hospitals, healthcare professionals, and government bodies.
Visco Trade Associates Ltd
With a market capitalization of Rs.226 crores, Visco Trade Associates Ltd share price closed at Rs.99.90 per share on Friday, rising around 2 percent compared to its previous close.
The stock is trading at a PEG of 0.04. In terms of return ratios ROE (Return on Equity) stands at 95.4 percent and ROCE (Return on Capital Employed) stands at 47.0 percent.
In Q1 FY25, the company posted a 17 percent YoY decrease in revenue to Rs.34 crore, meanwhile net profits rose 138 percent to Rs.19 crore in the same period.
Visco Trade Associates Ltd is a non-banking financial company based in Kolkata, India. The firm primarily engages in investment and trading of shares, as well as providing various loan services.
Franklin Industries Ltd
With a market capitalization of Rs.60.2 crores, Franklin Industries Ltd share price closed at Rs.1.97 per share on Friday, up 1.03 percent compared to its previous close.
The stock is trading at a PEG of 0.02. In terms of return ratios ROE (Return on Equity) stands at 112 percent and ROCE (Return on Capital Employed) stands at 120 percent.
In Q1 FY25, the company posted a 266 percent YoY decrease in revenue to Rs.26.63 crore, meanwhile net profits rose 841 percent to Rs.5.65 crore in the same period.
Franklin Industries Ltd based in Ahmedabad, India, primarily engages in the wholesale trading of agriculture commodities and jewellery.
Written by – Siddesh S Raskar
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