P/E (Price to Earnings) ratio defines the ratio of a company’s current share price to its earnings per share (EPS), which is frequently employed to define the value of a stock.
The Sugar stocks mentioned below have lower-than-average P/E ratios, indicating that their stock prices are undervalued in relation to its earnings.This is considered as a positive investment indicator by value investors.
This method assists investors in making informed decisions before investing in equity markets.
Here are three sugar stock with low P/E ratios
Triveni Engineering and Industries Ltd
Triveni Engineering and Industries Ltd is a sugar producer and engineering industry pioneer. The firm sells sugar under the brand name Shagun. The company also has operations in sugar, water, gears, distillery, and power generation.
With a market capitalization of Rs 6,172 crores, the firm falls into the small-cap category. On July 18, shares were trading at Rs 281.90 a share, a 0.95 percent decrease from the previous close price.
The price-to-earnings ratio of the firm is 3.75, which is lower than the industry P/E of 22.49, indicating that the stock is trading at a lower price, and it has an EPS of 74.32.
Revenue climbed by 31% year on year to 5,616crore in FY 22-23 from the previous year, while net profit increased by 388% to Rs 1,775 crore. Its debt-to-equity ratio is 0.34.
EID Parry (India) Ltd
EID Parry is the largest sugar producer in South India, involved in manufacturing of sugar, nutraceuticals, and ethanol. The company also has a significant foothold in biopesticides through its subsidiary, Coromandel International Limited.
The company belongs to the small-cap category with a market capitalization of Rs 8,200 crore. Shares were trading at Rs 461.95 apiece,down 0.44 percent on July 18 from the previous close price.
The price-to-earnings ratio of the firm is 8.54, which is lower than the industry P/E of 16.80, indicating that the stock is trading at a lower price, and it has an EPS of 53.28.
Year on year, revenue increased by 50%, from Rs 23,527 crore in FY 21-22 to Rs 35,243 crore in FY 22-23. From Rs 1,572 crore to Rs 1,865 crore, net profit grew by 18%.
Avadh Sugar & Energy Ltd
Avadh Sugar & Energy Ltd primarily manufactures and sells sugar and its byproducts, spirits and co-generation.
With a market capitalization of Rs 1,099 crores,Avadh Sugar & Energy falls into the small-cap category. On July 18, shares were trading at Rs 550.15 a share, down 1.77 percent from the previous close price.
The price-to-earnings ratio of the firm is 10.79, which is lower than the industry P/E of 22.49, indicating that the stock is trading at a lower price, and it has an EPS of 50.11. Revenue climbed by 2% year on year to 2,798 crore in FY 22-23 from the previous year, while net profit decreased by 19% to Rs 100 crore. Its debt-to-equity ratio is 1.2.
Written by Omkar Chitnis
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