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 under Rs. 50 with PEG less than 1:
Comfort Intech Ltd
With a market capitalization of Rs. 458 crores, the shares of the alcohol company started Friday’s trading session on a higher note at Rs. 14.30 compared to its previous close of Rs. 14.15.
During the trading session, the shares hit a high of Rs. 14.40, gaining around 2 percent and are currently trading at Rs. 14.38 apiece
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Looking at the company’s financial performance, the revenue decreased by around 38 percent from Rs. 62.24 crores in the March quarter to Rs. 38.92 crores during the June quarter. Contrastingly, the net profits magnified by 189 percent from Rs. 2.87 crores to Rs. 8.29 crores during the same period.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 10.39 percent and a return on capital employed (RoCE) of 6.07 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 4.25 percent.
Moreover, the share is considered to be undervalued as the PE ratio stands at 19.9 times compared to the industry average of 39.5 times and the PEG ratio stands at 0.12 times, which means the market has underestimated its value with its projected earning potential.
Comfort Intech Ltd, based in Mumbai, India, is a diversified company primarily involved in the manufacturing and distribution of Indian Made Foreign Liquor (IMFL) and alcoholic beverages, along with trading in various consumer goods such as fans, water heaters, and textiles.
Additionally, the company engages in financial services as a registered Non-Banking Financial Company (NBFC), offering loans and investment services, while also participating in property leasing and the trading of shares and mutual funds.
Beardsell Ltd
With a market capitalization of Rs. 169 crores, the shares of the polystyrene (EPS) products manufacturing company started Friday’s trading session on a flatter note at Rs. 42.91 compared to its previous close of Rs. 41.90.
During the trading session, the shares hit a high of Rs. 43.70, gaining around 2 percent and are currently trading at Rs. 43.39 apiece.
Coming onto the company’s financial statements, the revenue decreased by around 12 percent from Rs. 67.87 crores during Q4FY24 to Rs. 59.65 crores in Q1FY25. On the other hand, the net profits zoomed by 140 percent from Rs. 95 lakhs to Rs. 2.28 crores during the same period.
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In terms of key financial metrics, the company reported a Return on Equity (RoE) of 10.39 percent and a return on capital employed (RoCE) of 6.07 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 4.25 percent.
Moreover, the share is considered to be undervalued as the PE ratio stands at 21.5 times compared to the industry average of 39 times and the PEG ratio stands at 0.31 times, which means the market has underestimated its value with its projected earning potential.
Established in 1936, Beardsell Ltd is primarily engaged in the manufacturing and supply of thermal insulation materials, including expanded polystyrene (EPS) products, and offers services in various sectors such as construction, clean rooms, and packaging.
Vaswani Industries Ltd
With a market capitalization of Rs. 146 crores, the shares of the leading industrial company started Friday’s trading session on a higher note at Rs. 48.75 compared to its previous close of Rs. 48.04.
During the trading session, the shares hit a high of Rs. 49.40, gaining around 3 percent and are currently trading at Rs. 48.83 apiece.
Looking at the company’s financial performance, the revenue jumped around 2 percent from Rs. 90.36 during the March quarter to Rs. 91.74 crores in the June quarter. On the other hand, the net profits declined by around 19 percent from Rs. 3.10 crores to Rs. 2.52 crores during the same timeframe.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 7.92 percent and a return on capital employed (RoCE) of 13.72 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 2.32 percent.
Moreover, the share is considered to be undervalued as the PE ratio stands at 16.6 times compared to the industry average of 19.5 times and the PEG ratio stands at 0.32 times, which means the market has underestimated its value with its projected earning potential.
Incorporated in 2003, Vaswani Industries Limited is a leading industrial enterprise specializing in the production and trading of a broad spectrum of products, including sponge iron, steel billets, TMT bars, and various forging and casting items.
Written By Vaibhav Patil
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