The P/E (Price to Earnings) ratio compares a company’s current share price to its earnings per share (EPS), which is a generally used measure to determine a stock’s value.
A Company with a lower P/E ratio is often better than the market average or competitors. This indicates that investors are paying less money for every dollar of earnings generated by a firm. Before investing in stocks, this strategy assists investors in making informed decisions.
Listed below are three Undervalued Multibagger Bank Stocks below Rs 50
Bank of Maharashtra
Bank of Maharashtra Ltd is a Mid-cap company with a market capitalization of Rs 27,390 crores. The company’s shares closed at Rs 38.45 per share, down 0.52 percent on Friday from the previous close price.
The company’s P/E ratio is 9.02, which is lower than the industry’s P/E ratio of 9.19, indicating that the stock is trading at a lower price or is undervalued, With an EPS of 4.29.
Bank of Maharashtra profitability ratios have steadily increased, with return on equity at 19.42 percent, and return on capital employed at 18.26 percent.
In the previous six months, the stock has risen 46 percent, and in the last year, the stock has gained multibagger returns of 115 percent.
Bank of Maharashtra is a Public Sector Bank (PSB) in Maharashtra that offers personal banking, cash management, retail loans and other financial services.
Ujjivan Small Finance Bank Ltd
Ujjivan Small Finance Bank has a market valuation of Rs 9,462 crores and is a small-cap firm. The stock closed at Rs 48.55 a share on Friday, up 0.21 percent from the previous close price.
The company’s P/E ratio is 7.75, which is lower than the industry’s P/E ratio of 9.19, indicating that the stock is trading at a lower price or is undervalued, With an EPS of 6.25.
Ujjivan Small Finance Bank’s profitability ratios reported, with return on equity at 29.37 percent, and return on capital employed at 28.36 percent.
In the previous six months, the stock has risen 77 percent, and in the last year, the stock has gained multibagger returns of 132 percent.
Ujjivan Small Finance Bank Ltd is an NBFC that provides financial inclusion for urban and rural area customers who are not adequately served by financial institutions.
The South Indian Bank Ltd
The South Indian Bank is a Small-cap company with a market capitalization of Rs 4,411 crores. The company’s shares closed at Rs 22.4 per share, up 6.16 percent on Friday from the previous close price.
The company’s P/E ratio is 5.12, which is lower than the industry’s P/E ratio of 9.19, indicating that the stock is trading at a lower price or is undervalued, With an EPS of 4.12.
South Indian Bank earned profitability ratios of 12.38 percent return on equity and 14.15 percent return on capital employed.
In the previous six months, the stock has risen 21 percent, and in the last year, the stock has gained multibagger returns of 165 percent.
South Indian Bank offers banking and financial services to the customers. The banking products mainly include loans, savings, investment vehicles, insurance, etc.
Written by Omkar Chitnis
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
