The price/earnings to growth ratio (PEG ratio) is the ratio of a stock’s price-to-earnings (P/E) ratio and the growth rate of its earnings for a specified period.
The same is used to determine a stock’s value along with factoring in the company’s expected earnings growth and is thought to provide a more complete picture than the standard P/E ratio.
Listed below are three stocks under the ‘mid-cap’ category that have a price/earnings to growth (PEG) ratio of less than 1 that one should keep on their watchlist:
Petronet LNG Limited
With a market capitalization of Rs 29,415 crores, the stocks of Petronet LNG Limited, owning and operating Liquefied Natural Gas imports and regasification terminals, closed at Rs 196.10 on Friday, slipping around 0.60 percent compared to the previous closing levels of Rs 197.25 apiece. The company’s PEG ratio is reported to be 0.93.
Having a look at the financials of the company, the basic profitability metrics such as operating revenues and net profits have increased in recent financial quarters.
The former increased from Rs 11,656.38 crores during Q1FY23-24 to Rs 12,532.57 crores during Q2FY23-24, and, the latter, keeping the timeframe the same, moved up from Rs 787.73 crores to Rs 814.91 crores.
CreditAccess Grameen Limited
With a market capitalization of Rs 25,497.01 crores, the stocks of CreditAccess Grameen Limited, engaged in providing microfinance services, closed at Rs 1,602.20 on Friday, slipping around 4.10 percent compared to the previous closing levels of Rs 1,671.10 apiece. The company’s PEG ratio is reported to be 0.69.
Having a walkthrough of the financials of the company, the basic profitability metrics such as operating revenues and net profits have increased in recent financial quarters.
The former increased from Rs 1,170.03 crores during Q1FY23-24 to Rs 1,246.94 crores during Q2FY23-24, and, the latter, keeping the timeframe the same, stayed uniform at levels of Rs 347 crores
Gujarat Gas Limited
With a market capitalization of Rs 29,280.67 crores, the stocks of Gujarat Gas Limited, engaged in the business of natural gas distribution, closed at Rs 425.35 on Friday, gaining around 0.80 percent compared to the previous closing levels of Rs 421.95 apiece. The company’s PEG ratio is reported to be 0.60.
Having a glance at the financials of the company, the basic profitability metrics such as operating revenues and net profits have increased in recent financial quarters.
The former marginally increased from Rs 3,923.7 crores during Q1FY23-24 to Rs 3,991.15 crores during Q2FY23-24, and, the latter, keeping the timeframe the same, moved up from Rs 215.09 crores to Rs 296.16 crores.
Written by Amit Madnani
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