The PEG ratio is a valuation metric used to assess whether a stock is reasonably priced by factoring in both its price-to-earnings (P/E) ratio and anticipated earnings growth. It is calculated by dividing the price-to-earnings ratio by the expected earnings growth rate. Thus, a stock is likely undervalued if it has a low PEG ratio.
Canara Bank
With a market capitalization of Rs 77,817.12 crore, Canara Bank was trading at Rs 85.79, marking a discount of 34 percent from its 52-week high of Rs 129.35. The stock has a PEG ratio of 0.05.
Canara Bank offers Treasury, Retail, Wholesale, Life Insurance, and Other Banking Operations. It also provides personal and corporate banking services, including depository services, mutual funds, loans, card services, and technology products.
Looking at the financials, the company reported an 8 percent increase in revenue from Rs 28,492 crore to Rs 30,751 crore in Q3 FY25. This was accompanied by a 11 percent increase in net profits from Rs 3,827 crore to Rs 4,256 crore.
PI Industries Ltd
With a market capitalization of Rs 51,788.98 crore, PI Industries Ltd was trading at Rs 3413.50, marking a discount of 29 percent from its 52-week high of Rs 4,801.40. The stock has a PEG ratio of 0.92.
PI Industries Limited is a holding company specializing in agrochemicals and pharma. It operates through two segments: Agrochemicals and Pharma. The company offers R&D services like molecule design, lead optimization, biological evaluation, and route synthesis.
Looking at the financials, the company reported a slight increase in revenue from Rs 1,898 crore to Rs 1,901 crore in Q3 FY25. The net profits however declined 17 percent from Rs 449 crore to Rs 373 crore.
With a market capitalization of Rs 66,451.73 crore, Lloyds Metals & Energy Ltd was trading at Rs 1,270, marking a discount of 14 percent from its 52-week high of Rs 1,477.50. The stock has a PEG ratio of 0.34.
Lloyds Metals and Energy Limited is an India-based company engaged in iron ore mining, sponge iron manufacturing, and power generation. It operates through three segments: Sponge Iron, Mining and Power.
Looking at the financials, the company reported a 12 percent decrease in revenue from Rs 1,912 crore to Rs 1,675 crore in Q3 FY25. The net profits however grew 17 percent from Rs 332 crore to Rs 390 crore.
Written by Shwetha Sairam
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