The PEG ratio, short for Price/Earnings to Growth ratio, is a financial metric calculated by dividing a stock’s Price-to-Earnings (P/E) ratio by the expected rate of the company’s earnings growth over a defined time frame.
A low PEG ratio could indicate that the stock is attractively priced, using the PEG ratio can be a valuable tool for identifying stocks that are potentially undervalued. Here are a few large-cap stocks that have PEG ratios of less than 1.5.
PI Industries Ltd
PI Industries Ltd is a prominent participant in the agrochemical sector, with a robust presence in both domestic and international markets. The company possesses advanced facilities in Gujarat, equipped with integrated process development teams and in-house engineering expertise.
On Thursday, shares of PI Industries Ltd were trading at Rs. 3,689.30 per share and it has delivered 1.82 percent returns in the last 1 year. The company has a market capitalization of Rs. 55,904 crores and has a return on equity (ROE) of 18.45 percent and a return on capital employed (ROCE) of 21.84 percent.
Varun Beverages
Varun Beverages Ltd has had a long-standing partnership with PepsiCo. It ranks among the largest franchisees of PepsiCo globally. The company is responsible for producing and distributing a diverse array of beverages, including carbonated soft drinks, non-carbonated beverages, and packaged water, all marketed under the trademarks owned by PepsiCo.
On Thursday, shares of Varun beverages were trading at Rs. 1,009.95 per share and it has delivered 75.95 percent returns in the last 1 year. The company has a market capitalization of Rs. 1,31,340 crores and has a return on equity (ROE) of 33.77 percent and a return on capital employed (ROCE) of 27.47 percent.
SRF Ltd
Incorporated in 1970, SRF Ltd Is in the business of manufacturing and selling technical textiles, chemicals, packaging films, aluminum foils, and other polymers.
On Thursday, shares of SRF Ltd closed at Rs. 2,337.75 per share and it has delivered negative returns of 2.27 percent in the last 1 year. The company has a market capitalization of Rs. 65,060 crores, a return on equity (ROE) of 22.91 percent and a return on capital employed (ROCE) of 22.62 percent.
Written by: Vinit Israni
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
