The Price-to-Earnings (P/E) ratio measures a company’s stock price relative to its earnings per share (EPS). A high P/E suggests investors expect strong future growth, while a low P/E may indicate undervaluation or slower growth prospects. Based on this, here are five small-cap stocks currently trading below their 3-year and 5-year TTM P/E averages, presenting potential investment opportunities.
Here are a few small-cap stocks currently trading below their 3-Year and 5-Year TTM P/E averages
Angel One Limited
With a market capitalization of Rs. 17,630.08 crore, the shares of Angel One Limited closed at Rs. 1,952.85 per equity share, down nearly around 0.46 percent from its previous day’s close price of Rs. 1,961.80.
The company’s trailing twelve months (TTM) price-to-earnings (PE) ratio is currently at 13.8, which is lower than its 3-year average PE of 17.5 and significantly below its 5-year average PE of 19.4, indicating a valuation discount.
Angel One Limited was established in 1996, formerly Angel Broking, and is India’s largest independent retail broking house, offering stock, currency, and commodity broking services. It serves over 13.8 million clients with a strong digital presence.
Angel One Limited’s revenue has increased from Rs. 1,059 crore in Q3 FY24 to Rs. 1,262 crore in Q3 FY25, which has grown by 19.17 percent. The net profit has increased by 8.08 percent from Rs. 260 crore in Q3 FY24 to Rs. 281 crore in Q3 FY25.
Bandhan Bank Limited
With a market capitalization of Rs. 22,497.22 crore, the shares of Bandhan Bank Limited closed at Rs. 139.65 per equity share, down nearly around 1.31 percent from its previous day’s close price of Rs. 141.50.
The company’s trailing twelve months (TTM) price-to-earnings (PE) ratio is currently at 9.58, which is lower than its 3-year average PE of 13.2 and significantly below its 5-year average PE of 15, indicating a valuation discount.
Bandhan Bank is a young Indian universal bank focused on inclusive banking, serving underbanked segments with a customer-centric approach. The company is headquartered in Kolkata and offers a range of financial products and services across India.
Bandhan Bank Limited’s NIM has increased from Rs. 2,140 crore in Q3 FY24 to Rs. 2,648 crore in Q3 FY25, which has grown by 23.74 percent. The net profit has decreased by 41.88 percent from Rs. 733 crore in Q3 FY24 to Rs. 426 crore in Q3 FY25.
Indraprastha Gas Limited
With a market capitalization of Rs. 25,879.03 crore, the shares of Indraprastha Gas Limited closed at Rs. 184.85 per equity share, down nearly around 1.81 percent from its previous day’s close price of Rs. 188.25.
The company’s trailing twelve months (TTM) price-to-earnings (PE) ratio is currently at 17.1, which is lower than its 3-year average PE of 19.6 and significantly below its 5-year average PE of 21.8, indicating a valuation discount.
Indraprastha Gas Limited is a leading City Gas Distribution company in India, providing CNG and PNG services. It is a joint venture between GAIL and BPCL, operating primarily in the Delhi NCR region.
Indraprastha Gas Limited’s revenue has increased from Rs. 3,556 crore in Q3 FY24 to Rs. 3,759 crore in Q3 FY25, which has grown by 5.71 percent. The net profit has decreased by 27.04 percent from Rs. 392 crore in Q3 FY24 to Rs. 286 crore in Q3 FY25.
KNR Constructions Limited
With a market capitalization of Rs. 5,837.02 crore, the shares of KNR Constructions Limited closed at Rs. 207.55 per equity share, down nearly around 1.28 percent from its previous day’s close price of Rs. 210.25.
The company’s trailing twelve months (TTM) price-to-earnings (PE) ratio is currently at 4.94, which is lower than its 3-year average PE of 16.8 and significantly below its 5-year average PE of 17.2, indicating a valuation discount.
KNR Constructions Limited is a Hyderabad-based infrastructure project development company established in 1995, specializing in EPC services for roads, railways, and metro projects, with over two decades of experience in the industry.
KNR Constructions Limited’s revenue has decreased from Rs. 996 crore in Q3 FY24 to Rs. 848 crore in Q3 FY25, which has dropped by 14.86 percent. The net profit has increased by 82.35 percent from Rs. 136 crore in Q3 FY24 to Rs. 248 crore in Q3 FY25.
Force Motors Limited
With a market capitalization of Rs. 9,488.21 crore, the shares of Force Motors Limited closed at Rs. 7156.55 per equity share, up nearly around 1.73 percent from its previous day’s close price of Rs. 7156.55.
The company’s trailing twelve months (TTM) price-to-earnings (PE) ratio is currently at 19.6, which is lower than its 3-year average PE of 28.6 and significantly below its 5-year average PE of 25.6, indicating a valuation discount.
Force Motors Limited is a fully vertically integrated Indian automotive company established in 1958. It manufactures a range of vehicles, including vans, trucks, and SUVs, with a strong focus on innovation and global partnerships.
Force Motors Limited’s revenue has increased from Rs. 1,692 crore in Q3 FY24 to Rs. 1,889 crore in Q3 FY25, which has grown by 11.64 percent. The net profit has increased by 35.29 percent from Rs. 85 crore in Q3 FY24 to Rs. 115 crore in Q3 FY25.
Written by – Nikhil Naik
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