Societe Generale, a French multinational banking and financial services company, has a significant presence in India. It has been operating in the country for over 35 years, providing a range of financial services to both Indian corporations and international clients.
The PEG ratio, which stands for Price/Earnings-to-Growth, compares a company’s Price-to-Earnings (P/E) ratio to its expected rate of growth. When the PEG ratio is below 1.0, it suggests that investors may be paying less per unit of earnings growth, making the stock potentially undervalued.
Listed below are such stocks held by Societe Generale whose PEG is less than 1:
Crayons Advertising Ltd
With a market capitalization of Rs. 342 crores, the shares of the advertising company started Friday’s trading session on a flatter note at Rs. 135.50 compared to its previous close of Rs. 135.55. During the trading session, the shares hit a high of Rs. 140.95, gaining around 4 percent and closed the day at Rs. 140 apiece.
Looking at the company’s financial statements, the revenue zoomed by 38 percent from Rs. 92 crores during H1FY24 to Rs. 127 crores in H2FY24. In addition, the net profits magnified by 83 percent from Rs. 6 crores to Rs. 11 crores during the same timeframe.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 16.47 percent and a return on capital employed (RoCE) of 21.51 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was at 7.34 percent.
Moreover, the share is considered to be undervalued as the PE ratio stands at 18.9 times compared to the industry average of 33.5 times and the PEG ratio stands at 0.18 times, which means the market has underestimated its value with its projected earning potential.
According to the latest shareholding pattern, Societe Generale entered the stocks during the March quarter by acquiring 3.65 lakh shares equivalent to 1.29 percent. The current value of the investment is around Rs. 5 crores.
Goodluck India Ltd
With a market capitalization of Rs. 2,898 crores, the shares of the engineering conglomerate started Friday’s trading session on a higher note at Rs. 929.50 compared to its previous close of Rs. 924.95. During the trading session, the shares hit a low of Rs. 910, losing around 2 per cent and closed the day at Rs. 912 apiece.
Coming onto the company’s financial performance, the revenue increased by 3 percent from Rs. 878 crores during the December quarter to Rs. 902 crores in the March quarter. On the other hand, the net profits jumped by 16 percent from Rs. 32 crores to Rs. 37 crores during the same period.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 11.46 percent and a return on capital employed (RoCE) of 20.05 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 3.75 percent.
Moreover, the share is considered to be undervalued as the PE ratio stands at 22.3 times compared to the industry average of 26.1 times and the PEG ratio stands at 0.68 times, which means the market has underestimated its value with its projected earning potential.
According to the latest shareholding pattern, Societe Generale entered the stocks during the March quarter by acquiring over 4.09 lakh shares equivalent to 1.29 percent. The current value of the investment is around Rs. 38 crores.
Credo Brands Marketing Ltd
With a market capitalization of Rs. 1,092 crores, the shares of the company specialized in providing casual clothing for men started Friday’s trading session on a higher note at Rs. 169.99 compared to its previous close of Rs. 168.92. During the trading session, the shares hit a high of Rs. 171.45, gaining around 1 percent and closed the day at Rs. 169.58 apiece.
Looking at the company’s financial performance, the revenue decreased by 11 percent from Rs. 150.14 crores during the December quarter to Rs. 133.08 crores in the March quarter. On the other hand, the net profits declined by 55 percent from Rs. 15.59 crores to Rs. 7.07 crores during the same period.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 17.32 percent and a return on capital employed (RoCE) of 18 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 10.43 percent.
Moreover, the share is considered to be undervalued as the PE ratio stands at 18.5 times compared to the industry average of 59.7 times and the PEG ratio stands at 0.66 times, which means the market has underestimated its value with its projected earning potential.
According to the latest shareholding pattern, Societe Generale increased its stake by 0.28 percent from 1.27 percent during the December quarter to 1.55 percent in the March quarter. The current value of the investment is Rs. 16.8 crores.
Written By Vaibhav Patil
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