A company’s price-to-earnings (P/E) ratio is lower than the industry average may indicate undervaluation or underlying issues. Investors should investigate further to understand if the low P/E signals a buying opportunity or reflects fundamental problems affecting the company’s future growth prospects.
Here are the stocks with PE less than the industry with robust results;
Voltamp Transformers Limited is an India-based firm that manufactures electrical transformers. The Company manufactures oil-filled transformers, cast resin transformers, unitized substations, induction furnace transformers, and lighting transformers.
With a market capitalization of Rs 13,729.13 crore, the shares were trading at Rs 13,570.20 per share, decreasing around 0.29 percent as compared to the price. Moreover, the stockmight be deemed undervalued, given its PE ratio of 40.8 times, in contrast to the industryaverage of 58.7 times.
Examine the company’s financial performance, revenue being magnified by 34 percent from Rs 322 crore in Q1FY24 to Rs 428 crore in Q1FY25, and during the same time frame, net profit also zoomed by 54 percent from Rs 51 crore to Rs 79 crore.
Shakti Pumps (India) Ltd is primarily engaged in the manufacturing of pumps and motors of various kinds. It also offers advanced water pumping solutions to a wide range of applications such as irrigation, horticulture, domestic water supply, and commercial and industrial applications.
With a market capitalization of Rs 9,407.38 crore, the shares were trading at Rs 4,695.45 per share, increasing around 5 percent as compared to the price. Moreover, the stock might be deemed undervalued, given its PE ratio of 40.4 times, in contrast to the industry average of 54.5 times.
Examine the company’s financial performance, revenue being magnified by 402 percent from Rs 113 crore in Q1FY24 to Rs 568 crore in Q1FY25, and during the same time frame, net profit also zoomed by 9200 percent from Rs 1 crore to Rs 93 crore.
KFin Technologies Limited offers services and solutions to asset managers and corporate issuers across asset classes in India, as well as investor solutions such as transaction
origination and processing for mutual funds and private retirement schemes in Malaysia, the Philippines, and Hong Kong.
With a market capitalization of Rs 14,727.75 crore, the shares were trading at Rs 859.50 per share, decreasing around 3 percent as compared to the price. Moreover, the stock might be deemed undervalued, given its PE ratio of 54.3 times, in contrast to the industry average of 64.4 times.
Examine the company’s financial performance, revenue being magnified by 31 percent from Rs 182 crore in Q1FY24 to Rs 238 crore in Q1FY25, and during the same time frame, net profit also zoomed by 58 percent from Rs 43 crore to Rs 68 crore.
Tata Motors Group is a top worldwide automaker. As part of the legendary multinational corporation, the Tata group, it provides the globe with a diversified portfolio of automobiles, sports utility vehicles, trucks, buses, and defense vehicles.
With a market capitalization of Rs 3.64 crore, the shares were trading at Rs 1,097.25 per share, decreasing around 4.14 percent as compared to the price. Moreover, the stock might be deemed undervalued, given its PE ratio of 12.6 times, in contrast to the industry average of 29.4 times.
Examine the company’s financial performance, revenue being magnified by 6 percent from Rs 102,236 crore in Q1FY24 to Rs 108,048 crore in Q1FY25, and during the same time frame, net profit also zoomed by 72 percent from Rs 3,301 crore to Rs 5,692 crore.
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
