The Piotroski score, ranging from zero to nine, assesses a company’s financial strength, with nine indicating the strongest position. The price-to-earnings (P/E) ratio measures a stock’s share price relative to its earnings. A high P/E may suggest overvaluation and a low P/E indicates better value, as investors pay less for each rupee of earnings.
Here are three large-cap stocks with a high Piotroski score of 9 and P/E lower than the industry average:
Bharat Electronics Limited
Bharat Electronics Limited (BEL) is a Navratna public sector enterprise, specializing in the design, development, and manufacturing of advanced electronic products for the aerospace and defense sectors.
With a market capitalization of Rs.2.07 lakh crores, the company’s share price closed at Rs.283.65 per share on Friday’s trading session, falling around 2.39 percent compared to its previous closing price. The company has a Piotroski score of ‘9’.
The stock is trading at a P/E of 48.8, below the industry average of 68.5, with an EPS (Earning Per Share) of Rs.5.8.
Looking forward to BEL’s financial performance, revenue clinched by 20.12 percent to Rs.4,244 crore in Q1FY25 from Rs.3,533 crore in Q1FY24. During the same time frame, net profit increased 47 percent to Rs.791 crore from Rs.539 crore.
Alkem Laboratories Limited
Alkem Laboratories Ltd. is a prominent pharmaceutical company focused on the development, manufacturing, and marketing of generic and specialty drugs across a range of therapeutic areas.
With a market capitalization of Rs.75,445 crores, the company’s share price closed at Rs.6,330.8 per share on Friday’s trading session, rising around 0.88 percent compared to its previous closing price. The company has a Piotroski score of ‘9’.
The stock is currently trading at a P/E ratio of 35.2, below the industry average of 39.7, with an EPS of Rs.172.
Looking ahead to Alkem Laboratories’ financial performance, revenue rose by 2.15 percent to Rs.3,032 crore in Q1 FY25, compared to Rs.2,968 crore in Q1 FY24. Meanwhile, net profit surged by 91 percent to Rs.550 crore from Rs.288 crore over the same period.
Hindustan Aeronautics Limited (HAL) is a state-owned aerospace and defense company, specializing in the design, production, and maintenance of aircraft, helicopters, and related systems for both military and civilian use.
With a market capitalization of Rs.3.14 lakh crores, the company’s share price closed at Rs.4,700.65 per share on Friday’s trading session, falling around 1.91 percent compared to its previous closing price. The company has a Piotroski score of ‘9’.
The stock is trading at a P/E ratio of 38.2, below the industry average of 83.2, with an EPS of Rs.123.
For HAL’s financial performance, revenue surged by 11 percent to Rs.4,348 crore in Q1 FY25, up from Rs.3,915 crore in Q1 FY24. Net profit also rose by 76.4 percent to Rs.1,436 crore from Rs.814 crore during the same period.
Written by – Siddesh S Raskar
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