The Price/Earnings-to-Growth (PEG) ratio is a stock valuation metric that considers the company’s expected earnings growth, providing a more complete picture than the traditional P/E ratio. It is calculated by dividing the P/E ratio by the EPS growth rate.
A PEG ratio of less than 1 is generally considered favorable, indicating that a stock may be undervalued, whereas a ratio greater than 1.0 may indicate an overvalued stock.
Engineers India Ltd
Engineers India Ltd (EIL), founded in 1965, is a leading global engineering consultancy and EPC company owned by the Government of India and operated under the administrative control of the Ministry of Petroleum and Natural Gas.
The PEG ratio of the company is 0.29, the company has a low price-to-earnings ratio of 27, and it has a low debt-to-equity ratio of zero. With a return on equity of 18%, return on capital employed is 23%, and a net profit margin of 10%.
Looking at the company’s financial statements net revenues fell 0.4% from ₹793 crores in Q2FY23 to ₹789 crores in Q2FY24, Furthermore, net profit increased 69% from ₹75 crores to ₹127 crores during the same period.
On Thursday, the share price closed at 0.36% down to ₹232.80 per share from its previous close of ₹233.65, with a market capitalization of ₹13,080 crores.
The share price of the company rose by 180% in the last year and 57% in the last six months, for instance, if an investor invested ₹1 lakh a year ago the current value would be ₹2.80 Lakh.
Titagarh Rail Systems
Titagarh Rail Systems Limited, formerly Titagarh Wagons Limited, is a passenger rolling stock supplier that includes metro coaches. Electric propulsion equipment such as traction motors and vehicle control systems are among the products offered by the company.
Titagarh Rail Systems Ltd has a PEG ratio of 0.1, a price-to-earnings ratio of 69 with a low debt-to-equity ratio of 0.26, a return on equity ratio of 14%, and a return on capital employed of 16%.
Net revenue of the company increased 54% year on year, from ₹607 crores in Q2FY23 to ₹935 crores in Q2FY24. In addition, the net profit rose 57% year on year, from ₹45 crores in Q2FY23 to ₹71 crores in Q2FY24.
With a market capitalization of ₹15,000 crores, the share price of the company closed 1.57% up at ₹1,114 per share from its previous close of ₹1,096.75 on Thursday session.
Titagarh Rail System Ltd has risen 63% in the last six months and 138% in the last year, for example, if an investor invested ₹1 Lakh a year ago the current value would be ₹2.38 Lakh.
Jupiter Wagons Ltd
Jupiter Wagons Limited is an integrated railway engineering company that manufactures freight wagons and passenger coaches for the Indian Railways. The Company manufactures railway wagons, wagon components, castings, and metal fabrication, which includes load bodies for commercial vehicles, rail freight wagons, and components.
The company has a PEG ratio of 0.24, with a low debt-to-equity ratio of 0.36, a return on equity ratio of 16%, and a return on capital employed ratio of 23%.
Jupiter Wagons Ltd’s net revenue of the company increased 110% year on year, from ₹417 crores in Q2FY23 to ₹879 crores in Q2FY24. In addition, the net profit rose 228% year on year, from ₹25 crores in Q2FY23 to ₹82 crores in Q2FY24.
The company’s market capitalization is ₹16,410 crores, and its share price closed at ₹394 per share, up 1.6% from the previous close of ₹387.80 on Thursday.
Jupiter Wagons Ltd has risen 72% in the last six months and 250% in the last year, for example, if an investor invested ₹1 Lakh a year ago the current value would be ₹2.50 Lakh.
Written by Sriram KV
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.
