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Stocks with a PEG ratio of less than 1 to watch; Do you have one?

The PEG ratio, which stands for Price/Earnings-to-Growth, compares a company’s Price-to-Earnings (P/E) ratio to its expected growth rate. When the PEG ratio is below 1.0, it indicates that investors may be paying less per unit of earnings growth, potentially making the stock undervalued.

Below are the stocks of all market caps with a PEG less than:

Mold-Tek Technologies Ltd

With a market capitalization of Rs. 622 crores, the shares of the civil and mechanical engineering services company started Friday’s trading session on a lower note at Rs. 211 compared to the previous closing of Rs. 217.55. During the trading session, the shares touched a low of Rs. 210.35, lost around 1 percent and closed the day at Rs. 215 each.

Looking at the company’s financial statements, sales increased by 4 percent from Rs. 40.07 crores during the September quarter to Rs. 41.75 crores in the December quarter. On the other hand, net profit fell by 14 percent from Rs. 8.13 crores to Rs. 7.01 crores during the same period.

Owing to rising revenues and profits year-on-year, the company’s profitability figures improved, with return on equity (RoE) increasing from 19.88 percent in FY21-22 to 33.20 percent in FY22-23. capital employed (RoCE) rose from 25.50 percent to 41.68 percent over the same period.

Furthermore, the stock is considered undervalued as its price-to-earnings ratio is 19.7 times higher than the industry average of 39.8 times and its PEG ratio is 0.49 times, meaning the market has increased its value by underestimated the expected profit potential.

Glenmark Life Sciences Ltd

With a market capitalization of Rs. 9,812 crores, the pharmaceutical company’s shares started Friday’s trading session on a lower note at Rs. 790 compared to the previous close of Rs. 800. During the trading session, the shares touched a high of Rs. 811, gained about 2 percent to close the day at Rs. 802 each.

Looking at the company’s financial statements, sales declined by 4 percent from Rs. 595 crores during the September quarter to Rs. 573 crores in the December quarter. On the other hand, net profit remained constant at Rs. 119 crore during both the quarters.

Due to the increasing expenditure, the company’s profitability figures declined, with return on equity (RoE) declining from 29.83 percent in FY21-22 to 22.28 percent in FY22-23, and return on capital employed (RoCE) showed an increase. a downward move from 42.20 percent to 29.86 percent in the same time frame.

Furthermore, the stock is considered undervalued as its price-to-earnings ratio is 18.8 times higher than the industry average of 33 times and its PEG ratio is 0.06 times higher. This means that the market has underestimated its value and expected profit potential.

Deepak Nitrite Ltd

With a market capitalization of Rs. 30,901 crores, the chemical company’s shares started Friday’s trading session on a lower note at Rs. 2,291 compared to the previous closing of Rs. 2,305.25. During the trading session, the shares touched a low of Rs. 2,245.60, lost around 2 percent to close the day at Rs. 2,271 each.

Looking at the company’s recent financial statements, sales increased by 13 percent from Rs. 1,778 crores during the September quarter to Rs. 2,009 crores in the December quarter. Moreover, net profit declined marginally by 1.5 percent from Rs. 205 crores to Rs. 202 crores in the same time frame.

Due to the increasing expenditure, the company’s profitability figures declined, with return on equity (RoE) declining from 23.71 percent in FY21-22 to 19.23 percent in FY22-23. a downward move from 30.94 percent to 24.69 percent in the same time frame.

Furthermore, the stock is considered overvalued, with a price-to-earnings ratio of 39.1 times, which is higher than the industry average of 33.4 times. Conversely, its PEG ratio stands at 0.67 times, indicating that the market may have underestimated its value relative to its expected earnings potential.

Max Healthcare Institute Ltd

With a market capitalization of Rs. 75,406 crores, the shares of the healthcare services company started Friday’s trading session on a flatter note at Rs. 779 compared to the previous close of Rs. 778.10. During the trading session, the shares touched a low of Rs. 748.45, lost around 2 percent and closed the day at Rs. 772 each.

Looking at the company’s recent financial statements, revenue declined marginally by 2 percent from Rs. 1,363 crores during the September quarter to Rs. 1,335 crores in the December quarter. Moreover, net profit increased by 4 percent from Rs. 277 crores to Rs. 289 crores during the same period.

Owing to rising revenues and profits year-on-year, the company’s profitability figures improved, with return on equity (RoE) increasing from 5.41 percent in FY21-22 to 10.40 percent in FY22-23. capital employed (RoCE) rose from 6.89 percent to 8.49 percent over the same period.

Moreover, the stock is considered overvalued, with a price-to-earnings ratio of 71.4 times, which is higher than the industry average of 41.3 times. Conversely, its PEG ratio stands at 0.62 times, suggesting that the market may have underestimated its value relative to its expected earnings potential.

Written by Vaibhav Patil

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