IRCTC and 4 other midcap other stocks with PE ratios below their 5-year average to keep on your radar

The Price-to-Earnings (P/E) Ratio is a widely used financial metric that helps investors assess the valuation of a company’s stock. It measures the relationship between a company’s current share price and its earnings per share (EPS). The P/E ratio is often used to evaluate whether a stock is overvalued, undervalued, or fairly priced relative to its earnings.

This ratio helps investors determine how much they are willing to pay for a company’s earnings, offering insight into whether a stock is overvalued or undervalued. A high P/E ratio may indicate that investors expect future growth and are willing to pay a premium for the stock, while a low P/E ratio could suggest that the stock is undervalued or that the company is underperforming.

Indian Railway Catering & Tourism Corporation Ltd

Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) is a public sector undertaking under India’s Ministry of Railways, established in 1999 to professionalize and upgrade railway catering and tourism services. Its primary activities include managing online ticketing, providing catering on trains and at stations, and developing tourism packages for both domestic and international travel.

The stock has a current P/E ratio of 40.4, compared to its 5-year P/E of 65.0, suggesting it may be trading below its historical valuation. It shows strong profitability with a Return on Capital Employed (ROCE) of 49.0% and Return on Equity (ROE) of 37.2%. Additionally, its debt-to-equity ratio is low at 0.02, showing that the company has a strong financial position and doesn’t rely much on debt.

Suzlon Energy Ltd

Suzlon Energy Ltd. is a leading Indian renewable energy solutions provider that designs, manufactures, installs, and maintains wind turbines. Founded in 1995 and headquartered in Pune, India, the company has installed over 21 GW of wind energy capacity in 17 countries and is a major player in India’s renewable energy market.

The stock has a current P/E ratio of 22.6, compared to its 5-year P/E of 90.7, suggesting it may be trading below its historical valuation. It shows strong profitability with a Return on Capital Employed (ROCE) of 32.5% and Return on Equity (ROE) of 41.4%. Additionally, its debt-to-equity ratio is low at 0.05, showing that the company has a strong financial position and doesn’t rely much on debt.

Berger Paints India Ltd

Berger Paints India Ltd is a major Indian paint manufacturer founded in 1923, headquartered in Kolkata. It is the second-largest paint company in India and operates in both decorative and industrial segments, with a wide product range and a large dealer and warehouse network across the country. 

The stock has a current P/E ratio of 58.9, compared to its 5-year P/E of 64.9, suggesting it may be trading below its historical valuation. It shows strong profitability with a Return on Capital Employed (ROCE) of 24.9% and Return on Equity (ROE) of 20.3%. Additionally, its debt-to-equity ratio is low at 0.11, showing that the company has a strong financial position and doesn’t rely much on debt.

Sona BLW Precision Forgings Ltd

Sona BLW Precision Forgings Ltd. (Sona Comstar) is a global technology company that designs, manufactures, and supplies mission-critical automotive components like differential assemblies and starter motors for both conventional and electric vehicles. The company serves major global OEMs with a strong focus on the EV market, and operates manufacturing and assembly plants in India, China, Mexico, and the USA.

The stock has a current P/E ratio of 48.8, compared to its 5-year P/E of 74.8, suggesting it may be trading below its historical valuation. It shows strong profitability with a Return on Capital Employed (ROCE) of 17.8% and Return on Equity (ROE) of 14.4%. Additionally, its debt-to-equity ratio is low at 0.04, showing that the company has a strong financial position and doesn’t rely much on debt.

GE Vernova T&D India Ltd

GE Vernova T&D India Ltd, is a leading Indian company in the power transmission and distribution (T&D) sector, providing products and solutions for power infrastructure. As a part of the global GE Vernova group, it offers a wide range of equipment like transformers, switchgear, and high-voltage systems, and services.

The stock has a current P/E ratio of 81.0, compared to its 5-year P/E of 129, suggesting it may be trading below its historical valuation. It shows strong profitability with a Return on Capital Employed (ROCE) of 54.7% and Return on Equity (ROE) of 40.4%. Additionally, its debt-to-equity ratio is low at 0.01, showing that the company has a strong financial position and doesn’t rely much on debt.

Written by Sridhar J 

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