A stock with a Price-to-Earnings (P/E) ratio lower than the industry average can be beneficial for investors as it often indicates undervaluation, presenting a potential buying opportunity at a bargain price.
The price/earnings-to-growth, or PEG ratio is a valuation metric used for stocks and a PEG ratio of under 1 can indicate if a stock is undervalued, has strong growth prospects, and can be a potential buy.
Listed below are some of the well-known companies with P/E less than Industry P/E and with a PEG less than 1
Coal India
Coal India Ltd is mainly engaged in the mining and production of coal and operates coal washeries. The company’s major consumers are the power and steel sectors.
With a market capitalization of Rs. 2,37,142 Crores, the shares of Coal India Limited closed at Rs. 384.80 per equity share, up 0.47 percent from its previous day’s close price of Rs. 383. Coal India Limited has a P/E ratio of 6.53 compared to the Industry P/E of 19.4 and it has a PEG ratio of 0.40.
Dr Reddy’s Laboratories
Dr. Reddy’s Laboratories Limited is a global pharmaceutical company engaged in the business of offering a wide range of products and services including active pharmaceutical ingredients, generics, biosimilars, and over-the-counter medicines.
With a market capitalization of Rs. 1,12,724 Crores, the shares of Dr Reddy’s Laboratories Limited closed at Rs. 1,351 per equity share, up 0.76 percent from its previous day’s close price of Rs. 1,340.80.
Dr Reddy’s Laboratories Limited has a P/E ratio of 21.1 compared to the Industry P/E of 32.9 and it has a PEG ratio of 0.87.
Indus Towers
Indus Towers Limited is engaged in the business of the object of, inter-alia, setting up, operating, and maintaining wireless communication towers.
With a market capitalization of Rs. 88,378 Crores, the shares of Indus Towers Limited closed at Rs. 335 per equity share, up 0.07 percent from its previous day’s close price of Rs. 334.75.
Indus Towers Limited has a P/E ratio of 11.9 compared to the Industry P/E of 31.9 and it has a PEG ratio of 0.57.
Jai Balaji Industries
Jai Balaji Industries Limited is engaged in the business of manufacturing iron and steel products like sponge iron, pig iron, ductile iron pipe, and many more.
With a market capitalization of Rs. 16,436 Crores, the shares of Jai Balaji Industries Limited closed at Rs. 900.85 per equity share, up 0.16 percent from its previous day’s close price of Rs. 899.45.
Jai Balaji Industries Limited has a P/E ratio of 18.8 compared to the Industry P/E of 19.2 and it has a PEG ratio of 0.37.
Nava
Nava Limited is engaged in the business of manufacturing and selling ferroalloys, generation of power, and providing operation & maintenance services for power assets, mining, agribusiness and healthcare.
With a market capitalization of Rs. 15,483 Crores, the shares of Nava Limited closed at Rs. 990 per equity share, up 0.87 percent from its previous day’s close price of Rs. 981.45.
Nava Limited has a P/E ratio of 13.5 compared to the Industry P/E of 20.6 and it has a PEG ratio of 0.43.
Written by: Bharath K.S
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