The Price-to-Earnings Growth (PEG) ratio is a financial metric that combines a company’s price-to-earnings (P/E) ratio with its earnings growth rate. It is calculated by dividing the P/E ratio by the company’s expected earnings growth rate.
A PEG ratio of 1 is generally considered to indicate that a stock is fairly valued, as the price aligns with the company’s growth rate. A ratio below 1 suggests that the stock may be undervalued relative to its growth potential, while a ratio above 1 could indicate overvaluation.
Here is the list of stocks to watch out for
Suzlon Energy Ltd
Suzlon Energy Ltd is one of India’s leading renewable energy companies, specializing in the design, development, manufacturing, and installation of wind turbines. Founded in 1995 and headquartered in Pune, Suzlon has played a key role in India’s wind energy expansion. The company operates across several global markets, offering end-to-end wind energy solutions.
With a market capitalization of Rs. 78,259 crores, the company’s PEG ratio stood at 0.19, with an ROE of 41.3 percent and ROCE of 32.4 percent, along with a debt-to-equity ratio of 0.05, showcasing strong overall financial performance metrics.
Ashoka Buildcon Ltd
Ashoka Buildcon Ltd is a leading Indian infrastructure development company, primarily involved in building roads, highways, bridges, and power transmission projects. Established in 1976, it has a strong track record in both EPC (Engineering, Procurement, and Construction) and BOT (Build-Operate-Transfer) projects.
With a market capitalization of Rs. 5,207 crores, the company’s PEG ratio stood at 0.06, with an ROE of 54.8 percent and ROCE of 39.7 percent, along with a debt-to-equity ratio of 0.51, showcasing strong overall financial performance metrics.
KNR Constructions Ltd
KNR Constructions Ltd is a prominent infrastructure company based in India, mainly focused on road and highway construction. Founded in 1995, it undertakes EPC and BOT projects across multiple Indian states. The company also operates in irrigation and urban infrastructure development.
With a market capitalization of Rs. 5,485 crores, the company’s PEG ratio stood at 0.12, with an ROE of 27.2 percent and ROCE of 28.6 percent, along with a debt-to-equity ratio of 0.41, showcasing strong overall financial performance metrics.
Cellecor Gadgets Ltd
Cellecor Gadgets Ltd is an Indian electronics and lifestyle brand specializing in affordable consumer gadgets like mobile phones, smart TVs, earphones, sound systems, and wearable tech. The company focuses on budget-friendly products tailored to mass-market needs, particularly in Tier 2 and Tier 3 cities.
With a market capitalization of Rs. 742 crores, the company’s PEG ratio stood at 0.17, with an ROE of 25.1 percent and ROCE of 24.2 percent, along with a debt-to-equity ratio of 0.77, showcasing strong overall financial performance metrics.
Supreme Power Equipment Ltd
Supreme Power Equipment Ltd manufactures power and distribution transformers, primarily catering to the electrical infrastructure and renewable energy sectors. The company produces oil-filled transformers and supports custom solutions for power utilities and industrial users.
With a market capitalization of Rs. 488 crores, the company’s PEG ratio stood at 0.11, with an ROE of 22.4 percent and ROCE of 27.5 percent, along with a debt-to-equity ratio of 0.18, showcasing strong overall financial performance metrics.
International Conveyors Ltd
International Conveyors Limited (ICL) is a leading Indian manufacturer of PVC (Polyvinyl Chloride) conveyor belting solutions. The company specializes in solid woven, fabric-reinforced, PVC impregnated, and PVC-covered fire-retardant anti-static conveyor belting.
With a market capitalization of Rs. 610 crores, the company’s PEG ratio stood at 0.07, with an ROE of 28.9 percent and ROCE of 29.5 percent, along with a debt-to-equity ratio of 0.24, showcasing strong overall financial performance metrics.
Written by Sridhar J
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