Financially strong small-cap stocks offer great growth potential with less risk. When these stocks have a PEG ratio below 0.5, it means they are undervalued compared to their expected earnings growth. This article highlights five such small-cap companies that show strong financial health and promising future prospects, making them attractive options for smart investors.
Here are a few financially strong small-cap stocks with a PEG less than 0.5
Waaree Renewable Technologies Limited
With a market capitalization of Rs. 10,910 crore, the shares of Waaree Renewable Technologies Limited closed at Rs. 1,046.65 per equity share, with a flat movement in the day from its previous day’s close price of Rs. 1,046.70.
The company has a PEG ratio of 0.29. In terms of return ratios, the company’s ROCE and ROE stand at 82.1 percent and 65.4 percent, respectively. Waaree Renewable Technologies Limited has an earnings per share (EPS) of Rs. 27.6, and its debt-to-equity ratio is 0.06x.
Coming into financial highlights, Waaree Renewable Technologies Limited’s revenue has increased from Rs. 236 crore in Q1 FY25 to Rs. 603 crore in Q1 FY26, which has grown by 155.51 percent. The net profit has also grown by 207.14 percent from Rs. 28 crore in Q1 FY25 to Rs. 86 crore in Q1 FY26.
Waaree Renewable Technologies Limited was established in 1999 and is based in Mumbai. The company is a leading solar EPC company and designs, finances, constructs, and operates solar power projects, including rooftop and ground-mounted systems, serving commercial and industrial sectors in India and globally.
Oswal Pumps Limited
With a market capitalization of Rs. 8,589 crore, the shares of Oswal Pumps Limited closed at Rs. 753.65 per equity share, rising nearly 1.86 percent from its previous day’s close price of Rs. 739.90.
The company has a PEG ratio of 0.19. In terms of return ratios, the company’s ROCE and ROE stand at 77.9 percent and 87.5 percent, respectively. Oswal Pumps Limited has an earnings per share (EPS) of Rs. 28.2, and its debt-to-equity ratio is 0.72x.
Coming into financial highlights, Oswal Pumps Limited’s revenue has increased from Rs. 376 crore in Q1 FY25 to Rs. 514 crore in Q1 FY26, which has grown by 36.70 percent. The net profit has also grown by 33.80 percent from Rs. 71 crore in Q1 FY25 to Rs. 95 crore in Q1 FY26.
Oswal Pumps Limited was founded in 2003 and is based in Karnal, Haryana. It is a leading manufacturer of solar and electric pumps, motors, and related products. The company is known for its vertically integrated manufacturing capabilities and serves agricultural, industrial, and domestic sectors with a global footprint.
Shakti Pumps (India) Limited
With a market capitalization of Rs. 10,152 crore, the shares of Shakti Pumps (India) Limited closed at Rs. 822.75 per equity share, declining nearly 0.19 percent from its previous day’s close price of Rs. 824.30.
The company has a PEG ratio of 0.29. In terms of return ratios, the company’s ROCE and ROE stand at 55.3 percent and 42.6 percent, respectively. Shakti Pumps (India) Limited has an earnings per share (EPS) of Rs. 34.3, and its debt-to-equity ratio is 0.15x.
Coming into financial highlights, Shakti Pumps (India) Limited’s revenue has increased from Rs. 568 crore in Q1 FY25 to Rs. 622 crore in Q1 FY26, which has grown by 9.51 percent. The net profit has also grown by 4.30 percent from Rs. 93 crore in Q1 FY25 to Rs. 97 crore in Q1 FY26.
Shakti Pumps (India) Limited was established in 1982 in Pithampur, Madhya Pradesh. The company manufactures stainless steel submersible pumps, motors, and solar water pumps. It focuses on energy-efficient and innovative products serving agricultural, industrial, and domestic sectors with a strong global presence.
Shilchar Technologies Limited
With a market capitalization of Rs. 5,149 crore, the shares of Shilchar Technologies Limited closed at Rs. 4,501.65 per equity share, rising nearly 0.72 percent from its previous day’s close price of Rs. 4,469.25.
The company has a PEG ratio of 0.26. In terms of return ratios, the company’s ROCE and ROE stand at 71.3 percent and 52.9 percent, respectively. Shilchar Technologies Limited has an earnings per share (EPS) of Rs. 144, and it’s a debt-free company.
Coming into financial highlights, Shilchar Technologies Limited’s revenue has increased from Rs. 107 crore in Q1 FY25 to Rs. 159 crore in Q1 FY26, which has grown by 48.60 percent. The net profit has also grown by 70.83 percent from Rs. 24 crore in Q1 FY25 to Rs. 41 crore in Q1 FY26.
Shilchar Technologies Limited was founded in 1990 and specializes in manufacturing power and distribution transformers, including R-core and ferrite transformers. The company caters to various industries like utilities and renewable energy.
Alpex Solar Limited
With a market capitalization of Rs. 2,925 crore, the shares of Alpex Solar Limited closed at Rs. 1,195 per equity share, rising nearly 0.03 percent from its previous day’s close price of Rs. 1,194.70.
The company has a PEG ratio of 0.02. In terms of return ratios, the company’s ROCE and ROE stand at 51.8 percent and 48.1 percent, respectively. Alpex Solar Limited has an earnings per share (EPS) of Rs. 50.9, and its debt-to-equity ratio is 0.36x.
Coming into financial highlights, Alpex Solar Limited’s revenue has increased from Rs. 77 crore in Q1 FY25 to Rs. 380 crore in Q1 FY26, which has grown by 393.51 percent. The net profit has also grown by 4,100 percent from Rs. 1 crore in Q1 FY25 to Rs. 42 crore in Q1 FY26.
Alpex Solar Limited was established in 1993 and manufactures solar photovoltaic (PV) modules using advanced monocrystalline and polycrystalline technologies. The company provides solar energy solutions and EPC services for AC/DC solar pumps, serving clients across India with a manufacturing facility in Greater Noida.
Written By – Nikhil Naik
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