A stock is said to be ‘undervalued’ when the price-to-earnings (P/E) ratio of the company is comparatively less than the industry average.
Listed below are three NBFC stocks under Rs 400 that have a price-to-earnings (P/E) ratio lesser than that of the industry:
L&T Finance Holdings Limited
With a market capitalization of Rs 31,150.11 crores, the stocks of L&T Finance Holdings Limited closed at Rs 125.45 on Wednesday, slipping around 1.50 percent as compared to the previous close of Rs 127.35 apiece. The company’s scrip is trading near it’s 52-week high mark which was recorded at a price of Rs 140.20.
The P/E ratio of the company was reported at 16.71, and, the same represents a comparatively lesser number as compared to the P/E of 17.51 in the industry.
During the recent quarters, the company has been able to maintain its operating revenues of around Rs 3,200 crores and net profits rose from Rs 416 crores during Q4FY22-23 to Rs 530 crores during Q1FY23-24.
Mahindra & Mahindra Financial Services Limited
With a market capitalization of Rs 38,239.65 crores, the stocks of Mahindra & Mahindra Financial Services Limited closed at Rs 309.50 on Wednesday, gaining around 2.70 percent as compared to the previous close of Rs 301.40 apiece. The company’s scrip is trading near it’s 52-week high mark which was recorded at a price of Rs 346.40.
The P/E ratio of the company was reported at 16.99, and, the same represents a comparatively lesser number as compared to the P/E of 17.51 in the industry.
During the recent quarters, the company has increased its operating revenues from Rs 3,462 crores during Q4FY22-23 to Rs 3,583 crores during Q1FY23-24. On a contrasting note, the net profits, in the most recent period, reduced from Rs 662 crores to Rs 348 crores during the same period.
Aditya Birla Capital Limited
With a market capitalization of Rs 46,775.62 crores, the stocks of Aditya Birla Capital Limited closed at Rs 180 on Wednesday, slipping around 1.50 percent as compared to the previous close of Rs 182.80 apiece. The company’s scrip is trading near it’s 52-week high mark which was recorded at a price of Rs 199.40.
The P/E ratio of the company was reported at 9.47, and, the same represents a comparatively lesser number as compared to the P/E of 17.51 in the industry.
During the recent quarters, the company faced a marginal reduction in revenues from Rs 8,024 crores during Q4FY22-23 to Rs 7,044 crores during Q1FY23-24. On a contrasting note, the net profits, in the most recent period, rose from Rs 571 crores to Rs 602 crores keeping the timeframe the same.
Written by Amit Madnani
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