To evaluate whether a stock price is undervalued or overestimated investors commonly use the Price-to-Earnings ratio (P/E ratio or PE multiple), shares with a 'low P/E ratio' over industrial average are considered to be undervalued stock. However this should not be taken as a single parameter of stock picking, sometimes market also gives thumps-up to high P/E ratio usually for growth stocks. Ace investors like Rakesh Jhunjhunwala, Porinju Veliyath, Dolly Khanna, Radhakishan Damani etc. always advocate that an investor seeking 'multibagger stocks' should try to figure out stocks on certain parameters such as; robust growth prospects, P/E lower than industrial average, strong fundamentals etc.
This contribution is based on special demand from our readers, here in the latest list we have tried to include 'Low P/E stocks' having sound fundamentals and robust growth prospects.
The latest list of '10 Low P/E Stocks' is here, you must consider to have these stocks in your portfolio. All these stocks are currently trading low PE multiples.
We have classified these stocks on the basis of their P/E (Price Earning Ratio) ratios, as well as some other parameters such as fundamentals, technical aspects, book value, dividend yield, management efficiency etc. All data were taken from the official website NSE, BSE and financial portal like Moneycontrol, Google Finance and Yahoo Finance as on May 23, 2017.
We have classified these stocks on the basis of their P/E (Price Earning Ratio) ratios, as well as some other parameters such as fundamentals, technical aspects, book value, dividend yield, management efficiency etc. All data were taken from the official website NSE, BSE and financial portal like Moneycontrol, Google Finance and Yahoo Finance as on May 23, 2017.
Latest list of '10 Low P/E Stocks in India'
1. SJVN Ltd:
SJVN Limited, (formerly Satluj Jal Vidyut Nigam Limited-SJVNL) is a Mini Ratna, under the administrative control of the Ministry of Power, Govt. of India, was established as a joint venture between the Government of India (GOI) and the Government of Himachal Pradesh (GOHP) on 24 May 1988. SJVN is now a listed company with a shareholder pattern of 64.46% at Govt. Of India, 25.51% with Govt. Of Himachal Pradesh and rest of 10.03% with Public. The current paid-up capital and authorized capital of SJVN are Rs. 4,136.63 crore and Rs. 7,000 crore.
Matrix
|
Value
|
CMP
|
Rs. 30.95
|
P/E
|
9.08
|
Industrial
P/E
|
15.37
|
Face
Value
|
10
|
52
Week Low/High
|
25.95/36.60
|
2. CESC :
Calcutta Electric Supply Corporation - CESC is the one in the RP-Sanjiv Goenka Group, chaired by businessman Sanjiv Goenka. The company has recently announced the restructuring of its flagship CESC by dividing it into four separate companies. All the four entities will be listed and the effective date will be October 1.
Matrix
|
Value
|
CMP
|
Rs. 850
|
P/E
|
13.06
|
Industrial P/E
|
15.37
|
Face Value
|
10
|
52 Week Low/High
|
530/1001
|
3. NCL Industries:
NCL Industries Ltd., founded in 1979 as the flagship of the NCL Group, produces cement products under the brand name Nagarjuna in its manufacturing sites at Mattapalli and Kondapalli.
Matrix
|
Value
|
CMP
|
Rs. 209
|
P/E
|
14.92
|
Industrial P/E
|
44.50
|
Face Value
|
10
|
52 Week Low/High
|
100/229
|
4. South Indian Bank:
South Indian Bank Limited is a major private sector bank headquartered at Thrissur in Kerala, India.
Matrix
|
Value
|
CMP
|
Rs.25.55
|
P/E
|
10
|
Industrial P/E
|
25.82
|
Face Value
|
1
|
52 Week Low/High
|
16.29/27.10
|
5. Nahar Industrial Enterprises Limited (NIEL) :
Nahar Industrial Enterprises Limited (NIEL) was established on September 27, NIEL is a vertically integrated textile manufacturer with operations of spinning, weaving & processing and also with sugar unit with 2500 TCD per day. NIEL is the evolution of the merging of the various group companies with it. The strategic goal of NIEL is to take advantage of the growth opportunities it holds in the domestic and global textile industry. At the same time, the company recognizes the competitiveness of the industry, especially with the pressure from Asia, and in order to maintain growth, it must further improve the production process and reduce costs.
Matrix
|
Value
|
CMP
|
Rs. 124
|
P/E
|
5.57
|
Industrial P/E
|
18.65
|
Face Value
|
10
|
52 Week Low/High
|
66/149
|
6. Chambal Fertilisers and Chemicals Limited :
Chambal Fertilisers and Chemicals Limited is one of the largest private sector fertilizer producers in India. It was promoted by Zuari Industries Limited in the year 1985. Presently Chambal Fertilisers is a company in the KK Birla Group. The company operates in four segments: proprietary fertilizer, trade, textile and shipping.
Matrix
|
Value
|
CMP
|
Rs. 112
|
P/E
|
12
|
Industrial P/E
|
22.72
|
Face Value
|
10
|
52 Week Low/High
|
53/138
|
7. PTC India Finance :
PTC India Financial Services Ltd (PFS), promoted by PTC India Ltd (PTC) is a special purpose investment vehicle to provide total financial services to the entities in energy value chain, which inter-alia includes investing in equity and/or extending debt to power projects in generation, transmission, distribution; fuel sources, fuel related infrastructure like gas pipelines, LNG terminals, ports, equipment manufacturers and EPC contractors etc.
Matrix
|
Value
|
CMP
|
Rs. 45
|
P/E
|
10.18
|
Industrial P/E
|
35.8
|
Face Value
|
10
|
52 Week Low/High
|
33/50
|
8. ONGC:
Oil and Natural Gas Corporation Limited is an Indian multinational oil and gas company located in Dehradun, Uttarakhand, India. ONGC is a company in Maharatna and the largest producer of crude oil and natural gas in India, contributing around 70% of Indian domestic production. Crude oil is the raw material used by downstream companies such as IOC, BPCL, HPCL to produce petroleum products such as gasoline, diesel, kerosene, naphtha, cooking gas LPG etc.
Matrix
|
Value
|
CMP
|
Rs. 174
|
P/E
|
12.34
|
Industrial P/E
|
17.37
|
Face Value
|
5
|
52 Week Low/High
|
136/211
|
9. Reliance Industries Limited (RIL) :
Reliance Industries Limited is an Indian conglomerate holding company headquartered in Mumbai, Maharashtra, India. Reliance has companies in India that deal with energy, petrochemical, textiles, natural resources, retail and telecommunications. Reliance enjoys global leadership in its businesses and is the largest polyester yarn and fiber producer in the world and among the top five-ten producers in the world in large petrochemical products. The company operates in various business areas:
- Exploration and production
- Oil refining and marketing
- Petrochemical
- Textiles
- Retail
Matrix
|
Value
|
CMP
|
Rs. 1305
|
P/E
|
13.51
|
Industrial P/E
|
18.01
|
Face Value
|
10
|
52 Week Low/High
|
925/1467
|
10. Century Enka :
Founded in 1965, Cenury Enka Limited (CEL) is part of B.K. Birla company group. Cenury Enka has two production sites in Pune (Maharashtra) and Rajashree Nagar (Bharuch - Gujrat). The unit at the Rajashree Nagar site is known as Rajashree Polyfil. The products of Century Enka Limited are polyester filament yarn, nylon filament yarn, polyester POY, polyester and nylon chips of industrial and fabric class, nylon industrial yarn and nylon tire cord fabrics.
Matrix
|
Value
|
CMP
|
Rs. 367
|
P/E
|
9.11
|
Industrial P/E
|
19.97
|
Face Value
|
10
|
52 Week Low/High
|
200/454
|
Though the list of stocks trading in NSE and BSE was prepared on the basis of their P/E multiple parameters on 23 May 2017 yet an attempt was also made to include only fundamentally sound stocks. Moreover, depending on the nature of the business and the growth prospects of the sector, investors should not be advised to use a suitable tool to assess the company. A single ratio can not be applied blindly in order to assess the stocks across all sectors. Hope this article was helpful to you. Comment and criticism always welcome.
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