“Price-to-earnings” ratio, popularly known as P/E, is one of the most tracked metrics in the capital market industry. It shows how much money the company asks for a rupee of profit made by them. A stock is said to be an ‘undervalued’ one when the P/E is lesser than the industry averages.
Listed below are three stocks under the ‘Power’ segment that are trading at a P/E that is lesser than the industry P/E:
PTC India Limited
With a market capitalization of Rs 3,744.51 crores, the stocks of PTC India Limited closed at Rs 126.50 in Thursday’s trading session gaining around 0.80 percent compared to the previous closing price of Rs 125.55 apiece.
The company’s stock currently trading at a P/E of 8.12 and, as compared to the industry average of 16.32, the scrip is said to be trading in an ‘undervalued’ zone. Moreover, the price-to-book value ratio (P/B) of the company stands at 0.75, less than the industry average of 1.57.
During the recent quarters, the company has reported an increase in the operating revenues as well as net profits with the former moving up from Rs 3,624.95 crores during Q4FY22-23 to Rs 4,847.8 crores during Q1FY23-24, and, the net profits increasing from Rs 116.59 crores to Rs 129.83 crores.
Power Grid Corporation of India Limited
With a market capitalization of Rs 1.72 Lakh crores, the stocks of Power Grid Corporation of India Limited closed at Rs 246.30 in Thursday’s trading session slipping around 1.30 percent compared to the previous closing price of Rs 249.60 apiece.
The company’s stock currently trading at a P/E of 11.44 and, as compared to the industry average of 16.65, the scrip is said to be trading in an ‘undervalued’ zone. Moreover, the price-to-book value ratio (P/B) of the company stands at 2.07, less than the industry average of 2.10.
During the recent quarters, the company has reported a dip in the operating revenues as well as net profits with the former moving down from Rs 12,263.72 crores during Q4FY22-23 to Rs 11,048.13 crores during Q1FY23-24, and, the net profits reducing from Rs 4,320.43 crores to Rs 3,597.16 crores.
CESC Limited
With a market capitalization of Rs 10,881.61 crores, the stocks of CESC Limited closed at Rs 82.09 in Thursday’s trading session slipping around 2 percent compared to the previous closing price of Rs 83.85 apiece.
The company’s stock currently trading at a P/E of 7.92 and, as compared to the industry average of 12.04, the scrip is said to be trading in an ‘undervalued’ zone. Moreover, the price-to-book value ratio (P/B) of the company stands at 1.00, less than the industry average of 2.10.
During the recent quarters, the company reported opposing movements as far as the operating revenues and net profits are concerned. The operating revenues, on one hand, increased from Rs 3,102 crores to Rs 4,310 crores, and, net profits, on the other hand, moved down from Rs 433 crores to Rs 347 crores.
Written by Amit Madnani
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