The Price-to-Earnings Growth (PEG) ratio is a financial metric that combines a company’s price-to-earnings (P/E) ratio with its earnings growth rate. It is calculated by dividing the P/E ratio by the company’s expected earnings growth rate.
A PEG ratio of 1 is generally considered to indicate that a stock is fairly valued, as the price aligns with the company’s growth rate. A ratio below 1 suggests that the stock may be undervalued relative to its growth potential, while a ratio above 1 could indicate overvaluation.
The stocks with a PEG ratio of less than 1 to watch out:
Canara Bank Ltd
Canara Bank is one of India’s leading public sector banks, founded in 1906. Headquartered in Bangalore, it provides a wide range of banking products and services, including retail banking, corporate banking, and treasury services. The bank has a robust domestic and international presence, with a significant number of branches across India and abroad.
The stock closed at Rs.94.06 on Friday’s session, down by 1.8 percent, making a low of Rs. 93.07 per share compared to its previous closing price of Rs. 94.06 per share. The company’s PEG ratio stands at 0.06.
Lloyds Engineering Works Ltd
Lloyds Engineering Works Ltd is an Indian engineering company, primarily involved in manufacturing and providing engineering solutions. The company offers products like cranes, material handling equipment, and other machinery for various industries, including construction, steel, and power.
The stock closed at Rs. 75.97 on Friday’s session, up by 1.87 percent, making a high of Rs. 76.58 per share compared to its previous closing price of Rs. 74.40 per share. The company’s PEG ratio stands at 0.93.
Patel Engineering Ltd
Patel Engineering Ltd is an Indian infrastructure development company, primarily focusing on civil engineering and construction services. Established in 1949, it has been involved in the construction of hydroelectric power plants, dams, roads, bridges, and other major infrastructure projects.
The stock closed at Rs. 47.42 on Friday’s session, down by 1.68 percent, making a high of Rs. 48.24 per share compared to its previous closing price of Rs. 48.23 per share. The company’s PEG ratio stands at 0.98.
Gateway Distriparks Ltd (GDL) is a leading integrated logistics company in India, specializing in container freight stations (CFS), inland container depots (ICD), and cold chain logistics, offers services like cargo handling, warehousing, and transportation for import-export businesses.
The stock closed at Rs. 75 on Friday’s session, down by 1.47 percent, making a high of Rs. 76.52 per share compared to its previous closing price of Rs. 76.12 per share. The company’s PEG ratio stands at 0.89.
JTL Industries Ltd
JTL Industries Ltd is a leading manufacturer of steel pipes and tubes in India, with a focus on producing high-quality products for various industrial applications. The company offers a range of products including galvanized steel pipes, precision tubes, and ERW pipes for use in sectors like construction, automotive, and infrastructure.
The stock closed at Rs. 100 on Friday’s session, down by 1.61 percent, making a high of Rs. 103.99 per share compared to its previous closing price of Rs. 101.64 per share. The company’s PEG ratio stands at 0.65.
Written by Sridhar J
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