5 Undervalued Stocks with Low P/E and PEG

Undervalued Stocks with Low P/E and PEG: Stocks with low P/E (Price-to-Earnings) and PEG (Price/Earnings-to-Growth) ratios below 1 offer a fantastic opportunity for investors. These stocks are often undervalued and show strong growth potential.

What is PE ratio and PEG

The price-to-earnings ratio, also known as P/E ratio, is the ratio of a company’s share price to the company’s earnings per share. The ratio is used for valuing companies and to find out whether they are overvalued or undervalued.

P/E Ratio = Earnings per share / Market value per share​

The ‘PEG ratio‘ (price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company’s expected growth.

PEG = PE / Annual Earning per Share(EPS) Growth

5 Undervalued Stocks with Low P/E and PEG

Here are 5 key companies with P/E below the industry average and PEG below 1:

Coal India: Stability and Profitability

Coal India is a leader in coal mining and production in India, serving the power and steel sectors. Its low P/E and PEG make it a great long-term investment option.

  • Market Capitalization: ₹2,37,142 crore
  • Share Price: ₹384.80 (0.47% increase)
  • P/E Ratio: 6.53 (Industry P/E: 19.4)
  • PEG Ratio: 0.40

Dr. Reddy’s Laboratories: Global Leader in Pharmaceuticals

Dr. Reddy’s Laboratories is a leader in active pharmaceutical ingredients, generic drugs, and biosimilars. Its undervalued PEG makes it an attractive investment in the pharma sector.

  • Market Capitalization: ₹1,12,724 crore
  • Share Price: ₹1,351 (0.76% increase)
  • P/E Ratio: 21.1 (Industry P/E: 32.9)
  • PEG Ratio: 0.87

Also Read : Highest Dividend Paying Midcap Stocks: Secure Income and Growth in 2025

Indus Towers : Wireless Communication

Indus Towers is a leading company in the installation, operation, and maintenance of wireless communication towers. Its strong fundamentals and stable PEG make it a safe option for investors.

  • Market Capitalization: ₹88,378 crore
  • Share Price: ₹335 (0.07% increase)
  • P/E Ratio: 11.9 (Industry P/E: 31.9)
  • PEG Ratio: 0.57

Jai Balaji Industries: Leader in Steel Manufacturing

Jai Balaji Industries plays a crucial role in manufacturing iron and steel products, including sponge iron and ductile iron pipes. Its stable growth and undervalued PEG make it suitable for investment in the metal sector.

  • Market Capitalization: ₹16,436 crore
  • Share Price: ₹900.85 (0.16% increase)
  • P/E Ratio: 18.8 (Industry P/E: 19.2)
  • PEG Ratio: 0.37

Nava: Multi-Sector

Nava Limited is involved in diverse businesses like power generation, ferroalloys manufacturing, and mining. Its multi-sector presence and strong PEG make it an appealing option for investors.

  • Market Capitalization: ₹15,483 crore
  • Share Price: ₹990 (0.87% increase)
  • P/E Ratio: 13.5 (Industry P/E: 20.6)
  • PEG Ratio: 0.43

Also Read:
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Conclusion: Look for Opportunities

These stocks with low P/E and PEG ratios offer investors the chance to invest in undervalued shares. These companies are not only leaders in their industries but also have strong fundamentals, providing long-term benefits. Always do proper research and seek expert advice before investing.

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Disclaimer: Investing in the stock market is subject to market risks. Please do your research or consult your financial advisor before making any decisions. The information provided in this article aims to educate and inform investors and traders.

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