PE ratio stands for Price-to-Earning ratio. It helps us to ascertain the fair value of a company’s stock. While there is no fixed saying whether if a high PE or a low PE is good, it is always advisable to look at their respective industry PE because that as a whole helps in developing an idea if the particular stock of a company is cheap or expensive based on the industry norms.
In this article, we will look at some of the companies that are trading below their industry PE.
Tata Consultancy Services Ltd
Tata Consultancy Services Limited (TCS) is a global IT services and consulting company based in Mumbai, India. TCS operates across the Americas, Europe, India, and beyond, serving industries such as banking, healthcare, retail, manufacturing, and technology. It offers IT solutions including cloud services, cybersecurity, data analytics, enterprise applications, IoT, and digital engineering. The company also delivers smart city solutions, blockchain services, and AI-driven automation tools.
With a market cap of Rs 13,03,961 crores.It has a PE of 26.74x, which is lower than the industry PE of 28.94x. It made a 52-week high of Rs 4,592.25 per share, down by 21 percent, from its CMP of Rs 3,606 per share. It has an ROE and ROCE of 51.5 percent and 64.3 percent respectively.
Infosys Ltd
Infosys Limited is a global provider of consulting, technology, outsourcing, and digital services. It operates across North America, Europe, India, and beyond, serving industries such as finance, healthcare, manufacturing, retail, and telecommunications. It also offers solutions in AI, cloud, cybersecurity, IoT, blockchain, enterprise applications, and digital transformation. The company also specializes in SAP, Oracle, Salesforce, and DevOps solutions, driving innovation across multiple sectors.
With a market cap of Rs 6,52,228 crores. It has a PE of 23.59x, which is lower than the industry PE of 28.94x. It made a 52-week high of Rs 2,006.45 per share, down by 22 percent, from its CMP of Rs 1,570.65 per share. It has an ROE and ROCE of 31.8 percent and 40 percent respectively.
Hindustan Unilever Ltd.
Hindustan Unilever Limited (HUL) is a leading fast-moving consumer goods (FMCG) company operating in India and globally. It manufactures and sells products across the Home Care, Beauty & Personal Care, and Foods & Refreshments segments. HUL offers detergents, water purifiers, skin and hair care products, etc. Its food and beverage portfolio includes tea, coffee, soups, nutrition drinks, ice creams, and frozen desserts. The company also engages in exports, consignment, real estate, and trust-related businesses.
With a market cap of Rs 5,32,730 crores. It has a PE of 51.46x, which is in line withthe industry PE of 53.24x. It made a 52-week high of Rs 3,034.50 per share, down by 25 percent, from its CMP of Rs 2,258.85 per share. It has an ROE and ROCE of 20.2 percent and 27.2 percent respectively.
Life Insurance Corporation of India Ltd.
Life Insurance Corporation of India offers insurance plans, including endowment, whole life, term insurance plans, money back, and term assurance plans, as well as riders comprising accidental death and disability benefits, critical illness benefits, and premium waiver benefit riders. The company also provides pension, unit linked, micro insurance, withdrawal, and health plans, as well as various group schemes.
With a market cap of Rs 5,05,556 crores. It has a PE of 11.79x, which is significantly lower than the industry PE of 49.68x. It made a 52-week high of Rs 1,221.50 per share, down by 34 percent, from its CMP of Rs 799.40 per share. It has an ROE and ROCE of 63.4 percent and 73 percent respectively.
Written by Satyajeet Mukherjee
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