The P/E (Price to Earnings) ratio compares a company’s current share price to its earnings per share (EPS), which is a generally used measure to determine a stock’s value.
A Company with a lower P/E ratio is often better than the market average or competitors. This indicates that investors are paying less money for every dollar of earnings generated by a firm. Before investing in stocks, this strategy assists investors in making informed decisions.
As per the latest corporate shareholdings filed, SBI Group publicly holds 149 stocks with a net worth of over Rs. 414,799.0 Cr
Here are three undervalued stocks in the SBI Group portfolio as of Q2FY24.
Ahluwalia Contracts India Ltd.
Ahluwalia Contracts India is a small-cap stock with a market capitalization of Rs 4,644 crores. The company closed at Rs 693.40 per share, up 5.48 percent on Friday from the previous close price.
The company’s P/E ratio is 24.21, which is lower than the industry’s P/E ratio of 42.75, indicating that the stock is trading at a lower price or is undervalued, With an EPS of 30.74.
Ahluwalia Contracts’ margins have slightly improved with a net profit margin of 6.83 percent and an operating margin of 10.83 percent.
As of Q2FY24, SBI holds a 7.52 percent stake out of the 26.65 percent stake held by domestic institutional investors in the company. The company’s promoter has a 55.32 percent stake.
The company’s revenue has increased by 26 percent yearly, from Rs 609 crore in Q1FY23 to Rs 763 crore in Q1FY24. During the same period, net profit jumped by 32 percent from Rs 37 crore to Rs 49 crore.
Ahluwalia Contracts India Ltd is engaged in engineering and contract construction, delivering state-of-the-art infrastructure and building projects for clients in India.
CSB Bank Ltd.
CSB Bank is a small-cap stock with a market capitalization of Rs 5,552 crores. On Friday,The company’s shares closed at Rs 320.05 per share,up 0.34 percent from the previous close price.
The company’s P/E ratio is 10.93, which is lower than the industry’s P/E ratio of 15.39, indicating that the stock is trading at a lower price or is undervalued, With an EPS of 32.57.
The company’s margins have slightly improved with a net profit margin of 23.59 percent and an operating margin of 9.97 percent.
As of Q2FY24, SBI holds a 9.36 percent stake out of the 14.41 percent stake held by domestic institutional investors in the company. The company’s promoter has a 49.72 percent stake.
The bank’s interest earned has increased by 28 percent yearly, from Rs 535 crore in Q1FY23 to Rs 683 crore in Q1FY24. During the same period, net profit has increased by 16 percent from Rs 114 crore to Rs 132 crore.
CSB Bank is engaged in banking Services for SME, retail, and NRI customers.
Emami Ltd.
Emami Ltd is a Mid-cap stock with a market capitalization of Rs 22,036 crores. On Friday,the company’s shares closed at Rs 504.85 per share, up 1.27 percent from the previous close price.
The company’s P/E ratio is 31.47, which is lower than the industry’s P/E ratio of 52.03, indicating that the stock is trading at a lower price or is undervalued, With an EPS of 15.79.
Emami reported with a net profit margin of 18.64 percent and an operating margin of 20.09 percent.
As of Q2FY24, SBI holds a 1.27 percent stake out of the 25.21 percent stake held by domestic institutional investors in the company. The company’s promoter has a 54.84 percent stake.
The company’s revenue has increased by 6 percent yearly, from Rs 778 crore in Q1FY23 to Rs 825 crore in Q1FY24. During the same period, net profit has risen by 78 percent from Rs 77 crore to Rs 137 crore.
Emami is engaged in manufacturing & marketing personal care & healthcare products with an enviable portfolio of household brand names such as BoroPlus, Navratna, and Fair.
Written By Omkar Chitnis
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