The PEG ratio, which stands for Price/Earnings-to-Growth, is a metric that helps evaluate whether a stock is undervalued or overvalued by taking into account both the stock’s price-to-earnings (P/E) ratio and its expected earnings growth rate.
Following are a few stocks held by ace investors with a PEG ratio of less than 1:
20 Microns Limited
With a market capitalisation of Rs. 822 crores, the stock hit a 2 percent lower circuit on BSE at Rs. 232.95 on Thursday.
20 Microns has reported a low PEG ratio of 0.76, indicating that the stock may be undervalued. Additionally, the company has a Return on Equity (ROE) of 17.8 percent and a Return on Capital Employed (ROCE) of 21.7 percent.
In Q2 FY25, the company witnessed a significant growth in its revenue from operations, reaching Rs. 240 crores, a year-on-year increase of around 20 percent. This was accompanied by a net profit growth of nearly 3 percent to Rs. 16.5 crores, during the same period.
As per the September 2024 shareholding data available with the BSE, the ace investor Dolly Khanna holds a 1.29 percent stake in 20 Microns.
Over the last one year, the stock has delivered positive returns of about 43 percent, and has gained nearly 32 percent year-to-date.
20 Microns Limited is engaged in the business of manufacturing and selling of Industrial Micronised Minerals and Speciality Chemicals.
Deepak Fertilizers & Petrochemicals Corporation Limited
With a market capitalisation of Rs. 16,221.6 crores, the shares of one of India’s leading producers of industrial & mining chemicals and fertilisers moved up by 7.1 percent on BSE to Rs. 1,324.95 on Thursday.
Deepak Fertilizers has reported a low PEG ratio of 0.5, indicating that the stock may be undervalued. Additionally, the company has a Return on Equity (ROE) of 7.67 percent and a Return on Capital Employed (ROCE) of 10.7 percent.
In Q2 FY25, the company witnessed a significant growth in its revenue from operations, reaching Rs. 2,747 crores, a year-on-year increase of around 13.3 percent. This was accompanied by a net profit growth of nearly 240 percent to Rs. 214 crores, during the same period.
As per the September 2024 shareholding data available with the BSE, the ace investor Mukul Mahavir Agrawal holds a 1.19 percent stake in Deepak Fertilizers.
Over the last one year, the stock has delivered multibagger returns of about xx percent, and has gained nearly xx percent year-to-date.
Deepak Fertilizers & Petrochemicals Corporation Limited is primarily engaged in the business of manufacture, trading and sale of bulk chemicals, along with operations in value added real estate.
Emkay Global Financial Services Limited
With a market capitalisation of Rs. 765 crores, the stock moved up by 1.8 percent on BSE to Rs. 307.95 on Thursday.
Emkay Global Financial has reported a low PEG ratio of 0.4, indicating that the stock may be undervalued. Additionally, the company has a Return on Equity (ROE) of 13.4 percent and a Return on Capital Employed (ROCE) of 17.1 percent.
In Q2 FY25, the company witnessed a significant growth in its revenue from operations, reaching Rs. 108 crores, a year-on-year increase of around 52 percent. This was accompanied by a net profit growth of nearly 189 percent to Rs. 26 crores, during the same period.
As per the September 2024 shareholding data available with the BSE, the ace investor Dolly Khanna holds a 2.48 percent stake in Emkay Global Financial.
Over the last one year, the stock has delivered multibagger returns of about xx percent, and has gained nearly xx percent year-to-date.
Emkay Global Financial Services Limited is engaged in the business of providing equity, currency and commodity broking services, investment banking, depository participant services and wealth management services including distribution of third-party financial products.
POCL Enterprises Limited
With a market capitalisation of Rs. 503.6 crores, the stock moved down by 2 percent on BSE to Rs. 180.65 on Thursday.
POCL Enterprises has reported a low PEG ratio of 0.5, indicating that the stock may be undervalued. Additionally, the company has a Return on Equity (ROE) of 29.6 percent and a Return on Capital Employed (ROCE) of 24.2 percent.
In Q2 FY25, the company witnessed a significant growth in its revenue from operations, reaching Rs. 373 crores, a year-on-year increase of around 10 percent. This was accompanied by a net profit growth of
nearly 190.6 percent to Rs. 9.6 crores, during the same period.
As per the September 2024 shareholding data available with the BSE, the ace investor Dolly Khanna holds a 1.11 percent stake in POCL Enterprises.
Over the last one year, the stock has delivered multibagger returns of about xx percent, and has gained nearly xx percent year-to-date.
POCL Enterprises Limited is engaged in the manufacturing of metallic oxides such as zinc oxides & lead oxides, metals such as zinc metal & lead metal and PVC stabilizers, and caters to the requirements of battery, rubber and PVC pipes & profile industries.
Written by Shivani Singh
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