There are many methods and metrics used to determine if a company is undervalued, overvalued or fairly valued. One such method among multiplier models is the use of P/E. The P/E of the company is compared to that of its industry comprising itself and its peers. If The company P/E is less than the industry average, it is said to be undervalued.
Here are 3 Undervalued Stocks with High Dividend Yield:
Hindustan Zinc Ltd:
Shares of Hindustan Zinc are trading at Rs. 322.45, up 1.2% from Rs. 318.55 at previous closing. The company has a market cap of Rs. 1,36,245 crore and 15.3% away from its 52 week high. The stock’s volumes today are over 0.6x the weekly average volumes.
Having been incorporated in 1966, Hindustan Zinc has more than 50 years of extensive experience in the mining and smelting of zinc and lead. In accordance with the Dow Jones Sustainability Index, Hindustan Zinc is India’s only integrated producer of zinc, lead, and silver and is ranked first in the Metals and Mining Category in Asia Pacific.
The company also has a P/E of 14.04 versus the industry average of 14.09. Dividend Yield of the company is 25.73%.
Sanofi India Ltd:
Shares of Sanofi India are trading at Rs. 7501.10, up 0.4% from Rs. 7474.80 at previous closing. The company has a market cap of Rs. 17,275 crore and 0.9% away from its 52 week high. The stock’s volumes today are over 0.25x the weekly average volumes.
Sanofi India manufactures and sells pharmaceutical products as a business. One of the companies that Sanofi uses to conduct business in India is Sanofi India Limited. Hoechst Fedco Pharma Private Limited was the name under which it was incorporated in May 1956. More than 3,000 people work for the company India today.
The company also has a low P/E of 29.5 versus the industry average of 40.5. Dividend Yield of the company is 9.74%.
Bank of Maharashtra Ltd:
Shares of Bank of Maharashtra are trading at Rs. 47.06, up 0.5% from Rs. 46.83 at previous closing. The company has a market cap of Rs. 33,325 crore and 9.5% away from its 52 week high. The stock’s volumes today are over 0.1x the weekly average volumes.
With its headquarters in Pune, Bank of Maharashtra is a public sector bank in India. It has 2263 branches and 30 million customers nationwide and also has the broadest network of branches of any nationalized bank. In terms of loan and deposit growth in percentage terms for public sector lenders during 2022–2023, the state-owned Bank of Maharashtra (BoM) has emerged as the leader.
The company also has a low P/E of 10.56 versus the industry average of 14.14. Dividend Yield of the company is 5.25%.
Written by Sandeep R
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