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 held by the Vanguard Fund group with PE less than the industry;
Amara Raja Energy & Mobility Ltd
Amara Raja Energy & Mobility Limited manufactures automobile batteries and residential uninterruptible power supply (UPS)/inverter batteries under the trademarks Amaron and PowerZone, which are sold across India via a sales service retail network.
With a market capitalization of Rs 27,730.17 crore, the shares were trading at Rs 1,515.10 per share, increasing around 0.09 percent as compared to the previous closing price. Moreover, the stock might be deemed undervalued, given its PE ratio of 29.6 times, in contrast to the industry average of 37.1 times.
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Vanguard Fund group holds 18,63,722 equity shares which is equivalent to 1.02 percent of the company as of June 2024.
Examine the company’s financial performance, revenue being magnified by 12 percent from Rs 2,771 crore in Q1FY24 to Rs 3,131 crore in Q1FY25, and during the same time frame, net profit also zoomed by 23 percent from Rs 199 crore to Rs 245 crore.
CMS Info Systems Ltd
CMS Info Systems Limited installs, maintains, and manages assets and technological solutions on an end-to-end outsourcing basis for banks, financial institutions, organized retail, and e-commerce enterprises in India.
With a market capitalization of Rs 9,163.52 crore, the shares were trading at Rs 563.00 per share, decreasing around 0.13 percent as compared to the previous closing price. Moreover, the stock might be deemed undervalued, given its PE ratio of 26.0 times, in contrast to the industry average of 33.5 times.
Vanguard Fund group holds 4,006,164 equity shares which is equivalent to 2.50 percent of the company as of June 2024.
Examine the company’s financial performance, revenue being magnified by 17 percent from Rs 512 crore in Q1FY24 to Rs 599 crore in Q1FY25, and during the same time frame, net profit also zoomed by 8 percent from Rs 84 crore to Rs 91 crore.
IIFL Finance Ltd
IIFL Finance Ltd is a diversified NBFC in India that lends and mortgages through its subsidiaries. It provides a diverse range of products, including home loans, gold loans, business loans, microfinance, capital market finance, and developer and construction finance.
With a market capitalization of Rs 19,561.81 crore, the shares were trading at Rs 461.10 per share, increasing around 0.15 percent as compared to the previous closing price. Moreover, the stock might be deemed undervalued, given its PE ratio of 12.0 times, in contrast to the industry average of 23.4 times.
Vanguard Fund group holds 8,762,381 equity shares which is equivalent to 2.1 percent of the company as of June 2024.
Examine the company’s financial performance, revenue being magnified by 13 percent from Rs 2,301 crore in Q1FY24 to Rs 2,613 crore in Q1FY25, and during the same time frame, net profit dropped by 28 percent from Rs 473 crore to Rs 338 crore.
Written by:- Abhishek Singh
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