The Price-to-Earnings (P/E) ratio helps determine whether a stock is fairly valued. A high or low P/E isn’t necessarily good or bad on its own—it’s best to compare it with the average P/E of the industry. This gives a better idea of whether a stock is cheap or expensive compared to its peers. In this article, we’ll look at companies trading below their industry P/E, which could mean they are undervalued.
Gland Pharma Ltd
Gland Pharma Ltd. is a pharmaceutical company specializing in injectable formulations. The company focuses on the research and development of complex drug molecules, including peptides, corticosteroids, and cytotoxic compounds. Its products cover various therapeutic areas like anti-infectives, cardiology, neurology, pain management, and more.
With a market cap of Rs 24,306 crores.It has a PE of 34.50x, which is lower than the industry PE of 36.48x. It made a 52-week high of Rs 2,220.95 per share, down by 33 percent from its CMP of Rs 1,475 per share. It has an ROE and ROCE of 9.26 percent and 13.58 percent, respectively.
Castrol India Ltd
Castrol India Ltd. is a leading manufacturer of automotive and industrial lubricants, serving both Indian and global markets. It offers engine oils, greases, brake fluids, coolants, and industrial lubricants under brands like Castrol EDGE, Castrol MAGNATEC, Castrol GTX, and Castrol POWER1. The company caters to industries such as automotive, aerospace, IT cooling, power generation, and marine.
With a market cap of Rs 20,040 crores. It has a PE of 21.85x, which is lower than the industry PE of 29.58x. It made a 52-week high of Rs 284.40 per share, down by 28.5 percent from its CMP of Rs 203.10 per share. It has an ROE and ROCE of 41.83 percent and 55.16 percent, respectively.
Crompton Greaves Consumer Electricals Ltd.
Crompton Greaves Consumer Electricals Ltd. is a leading manufacturer of consumer electrical products in India. It operates in two segments: Electrical Consumer Durables and Lighting Products. It offers a wide range of fans, pumps, water heaters, air coolers, room heaters, kitchen appliances, and irons. It also provides lighting solutions, including LED bulbs, lamps, and ceiling lights.
With a market cap of Rs 21,197 crores. It has a PE of 40.83x, which is lower than the industry PE of 68.01x. It made a 52-week high of Rs 484 per share, down by 32 percent from its CMP of Rs 329.35 per share. It has an ROE and ROCE of 15.55 percent and 15.82 percent, respectively.
Written by Satyajeet Mukherjee
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