Eco Recycling and 3 other waste management stocks with 3 yr profit CAGR of 30% and PEG ratio less than 1

Synopsis: In this article, we will explore waste management stocks that have achieved a 3-year Profit CAGR of over 30% and have a PEG ratio below 1.

A company with a 3-year profit growth greater than 30% indicates strong financial performance and improving profitability. It suggests the company is efficiently managing its operations, generating increasing earnings over time. This reflects a solid business model and potential competitive advantages in its sector.

A PEG ratio of 1 is generally considered to indicate that a stock is fairly valued, as the price aligns with the company’s growth rate. A ratio below 1 suggests that the stock may be undervalued relative to its growth potential, while a ratio above 1 could indicate overvaluation.

Investing in companies with strong profit growth and a PEG ratio below 1 offers potential for wealth creation. These stocks reflect improving profitability, efficient operations, and fair valuation, making them valuable opportunities for investors seeking high-growth, dynamic market players.

Here is the list of stocks to look out for:

EMS Ltd

EMS Limited is an Indian multi-disciplinary Engineering, Procurement, and Construction (EPC) company, specializing in water and wastewater infrastructure (sewerage, treatment plants, supply systems), electrical transmission, and road projects, primarily for government bodies, with a strong focus on turnkey solutions and operations & maintenance.

Over the last three years, the company has delivered impressive growth with a 33% Profit CAGR. It has a Return on Capital Employed (ROCE) of 26.9%, Return on Equity (ROE) of 20.7%, and a PEG ratio of 0.46, reflecting strong earnings growth potential at a relatively attractive valuation.

Eco Recycling Ltd

Eco Recycling Ltd (Ecoreco) is India’s pioneering, professionally-run e-waste management firm, offering end-to-end solutions like reverse logistics, data destruction, IT asset disposal (ITAD), e-waste recycling, lamp recycling, and precious metal recovery, integrating informal workers and utilizing advanced global tech for sustainable handling of electronics and Li-ion batteries, serving MNCs, government, and households across many countries. 

Over the last three years, the company has delivered impressive growth with a 141% profit CAGR. It has a Return on Capital Employed (ROCE) of 36.8%, Return on Equity (ROE) of 84.0%, and a PEG ratio of 0.32, reflecting strong earnings growth potential at a relatively attractive valuation.

Organic Recycling Systems Ltd

Organic Recycling Systems Ltd (ORSL) is an Indian engineering firm, focused on sustainable waste-to-energy and circular economy solutions, converting municipal/industrial waste into biogas (CBG/RNG), compost, and renewable fuels, using its own tech like DRYAD & Sanjeevak, operating plants, and offering project development, products, and consulting for governments and industries. 

Over the last three years, the company has delivered decent growth with a 70% profit CAGR. It has a Return on Capital Employed (ROCE) of 12.2%, Return on Equity (ROE) of 14.6%, and a PEG ratio of 0.14, reflecting strong earnings growth potential at a relatively attractive valuation.

Greenleaf Envirotech Ltd

Greenleaf Envirotech Ltd. is an Indian environmental engineering firm, specializing in EPC (Engineering, Procurement, Construction) and turnkey solutions for wastewater treatment (STPs & ETPs), environmental consulting, and fire safety, serving government, industrial, and educational sectors with a focus on building sustainable, cleaner environments through in-house technical expertise and a comprehensive range of services. 

Over the last three years, the company has delivered impressive growth with a 108% profit CAGR. It has a Return on Capital Employed (ROCE) of 46.4%, Return on Equity (ROE) of 44.6%, and a PEG ratio of 0.14, reflecting strong earnings growth potential at a relatively attractive valuation.

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