Profitable Stocks with Low PEG Ratios : From Value to Growth

Understanding PEG Ratios

What is the PEG Ratio?

Profitable Stocks with Low PEG Ratios.

Calculating the PEG Ratio

Interpreting the PEG Ratio

Why Low PEG Ratios are Attractive

Caveats and Considerations

Identifying Profitable Stocks with Low PEG Ratios In India

Stocks with low PEG ratios

TTK Healthcare Ltd ₹ 1,222 2.70 0.03 99.7 % 0.03
Andhra Paper Ltd ₹ 428 3.16 0.07 40.0 % 0.04
West Coast Paper Mills Ltd ₹ 492 3.38 0.10 44.8 % 0.09
Oil India Ltd ₹ 277 3.44 0.13 25.3 % 0.49
Seshasayee Paper & Boards Ltd ₹ 278 4.29 0.16 27.4 % 0.00
Gujarat Mineral Development Corporation Ltd ₹ 184 4.83 0.17 23.0 % 0.00
Coal India Ltd ₹ 231 5.02 0.16 56.0% 0.08
Redington Ltd ₹ 180.30 10.3 0.43 21.9% 0.48
Gujarat State Fertilizers & Chemicals Ltd ₹ 167 5.16 0.23 10.9% 0.00
Lloyds Metals & Energy Ltd ₹ 643 31.5 0.25 90.5% 0.00
Godawari Power & Ispat Ltd ₹ 570 11.5 0.38 22.3% 0.08
Deepak Nitrite Ltd ₹ 2,022 32.7 0.55 22.7% 0.02
Gujarat Gas Ltd ₹ 492 22.1 0.57 24.2% 0.02
Praj Industries Ltd ₹ 433 30.9 0.66 23.7% 0.04
National Aluminium Company Ltd ₹ 96.5 11.5 0.69 12.0% 0.01

Case Studies and Real-World Examples

In this section, we will present a fictional case study to demonstrate how profitable stocks with low PEG ratios can be identified and how they have performed in the past.

Case Study: ABC Pharmaceuticals

Company Overview: ABC Pharmaceuticals is a leading pharmaceutical company based in India. It has a strong market presence, a diverse product portfolio, and a focus on research and development. The company has shown consistent revenue and earnings growth over the past few years.

PEG Ratio Analysis: Let’s assume that the current P/E ratio of ABC Pharmaceuticals stands at 20, and the projected earnings growth rate for the next year is 15%.

Calculating the PEG Ratio: PEG Ratio = P/E Ratio / Earnings Growth Rate PEG Ratio = 20 / 15 = 1.33

Interpretation: With a PEG ratio of 1.33, ABC Pharmaceuticals is valued at a level commensurate with its growth prospects. While the PEG ratio is slightly above 1, indicating a somewhat higher valuation relative to its growth, it still falls within an acceptable range for some investors.

Past Performance: Over the last five years, ABC Pharmaceuticals has consistently delivered double-digit earnings growth, primarily driven by the successful launch of new drugs, increased demand for existing products, and expanding market share. This strong financial performance has led to steady stock price appreciation and attractive returns for long-term investors.

Lessons from the Case Study

Risk Assessment and limitations of PEG ratio as a valuation metric.

Limitations of PEG Ratio
Limitations of PEG Ratio

Tips for Successful Investing in Profitable Stocks with Low PEG Ratios



The blog is meant for informational purposes and serves the general analysis of the stocks. Contents provided here are based on careful research and analysis utilizing the fundamental and technical indicators over a period of time. The post does not consist any direct recommendation about Investing or trading in the securities market. Thorough research and careful consideration are necessary for individuals to fulfill their personal responsibility in making financial decisions. Seeking professional advice before making any financial decisions is always advisable.

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