The P/E (Price to Earnings) ratio signifies the company’s current share price to its earnings per share (EPS), which is frequently employed to define the value of a stock.
Here are two FMCG stocks with P/E ratios lower than the industry average.
SKM Egg Products Export (India) Ltd.
SKM Egg Products Export is a small-cap stock with a market capitalization of Rs 1,166 crore. On Friday, shares closed at Rs 442.90 a share, up 4.70 percent from the previous close price.
The company’s P/E ratio is 10.68, which is lower than the industry’s P/E ratio of 51.23.
The Company’s return on equity increased from 6.18 percent in FY22 to 39 percent in FY23, while the return on capital employed rose from 10.66 percent to 49.81 percent during the same period.
The company’s revenue has increased by 59 percent year on year, from Rs 132 crore in Q1FY23 to Rs 210 crore in Q1FY24. During the same period, net profit jumped by 400 percent from Rs 7 crore to Rs 35 crore.
SKM Egg Products Export’s net profit margins increased from 12.79 percent in FY22 to 21.97 percent in FY23, while operating margin rose from 4.78 percent to 16.89 percent during the same period.
The company’s stock has delivered returns of 233 percent in six months and 340 percent over a year. A shareholder’s investment of Rs. 1 lakh in the business would be worth Rs. 4.40 lakhs after a year and Rs. 3.33 lakhs after a half-year.
SKM Egg Products Export (India) Ltd manufactures and sells egg powder and liquid egg blends for application in various segments of the food industry and the health sector.
KRBL Ltd
KRBL is a small-cap stock with a market capitalization of Rs 9,475 crore. On Friday Shares closed at a price of Rs 402.55 a share, down 1.00 percent from the previous close price.
The company’s P/E ratio is 13.09, which is lower than the industry’s P/E ratio of 51.23.
The Company’s return on equity increased from 11.28 percent in FY22 to 14.93 percent in FY23, while the return on capital employed rose from 14.79 percent to 19.66 percent during the same period.
The company’s revenue has increased by 15 percent year on year, from Rs 1,228 crore in Q1FY23 to Rs 1,413 crore in Q1FY24. During the same period, net profit jumped by 18 percent from Rs 164 crore to Rs 194 crore.
KRBL’s net profit margins increased from 10.91 percent in FY22 to 13.07 percent in FY23, while operating margin rose from 14.97 percent to 17.82 percent during the same period.
The company shares have delivered returns of 13 percent in six months and 8 percent in a year.
KRBL is the world’s largest exporter of Basmati rice. The business is divided into two divisions: agriculture and energy. The Agri division of the company is involved in agricultural commodities such as rice, cotton, seed, bran, and bran oil. The Company’s Energy sector generates power from wind turbines and husk-based power plants.
Written by Omkar Chitnis
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