Premier Energies and 5 other midcap stocks trading below their 5 year average PE; Do you own any?

Synopsis: Premier Energies, Coforge, and 4 other midcap stocks trade below their 5-year P/E averages, showing strong profitability, low debt, and high ROCE/ROE, making them attractive picks for investors in various sectors.

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), it is often used to evaluate whether a stock is overvalued, undervalued, or fairly priced relative to its earnings.

Mid‑cap stocks with price‑to‑earnings (PE) ratios below their five‑year average may signal undervaluation relative to historical earnings. These often-overlooked companies can offer growth potential with reduced valuation risk, appealing to investors seeking a balance between stability and upside in the mid‑cap segment.

Premier Energies Ltd

Premier Energies Ltd is one of India’s leading integrated solar cell and module manufacturers in the renewable energy sector, with major manufacturing facilities in Hyderabad, Telangana. It produces high‑efficiency solar photovoltaic (PV) cells and modules and provides engineering, procurement, and construction (EPC) plus operations & maintenance (O&M) services across solar projects. 

The stock has a current P/E ratio of 26.5, compared to its 5-year P/E of 47.0, suggesting it may be trading below its historical valuation. It shows strong profitability with a Return on Capital Employed (ROCE) of 41.1% and Return on Equity (ROE) of 53.6%. Additionally, its debt-to-equity ratio is low at 0.47, indicating a strong financial position and limited reliance on debt.

Coforge Ltd

Coforge Ltd (formerly NIIT Technologies) is a global Indian IT services and digital solutions company headquartered in Noida, specializing in digital transformation, cloud, data analytics, enterprise applications, and AI‑enabled engineering services. The firm serves a wide range of industries, including banking, insurance, travel, and transportation, with bespoke software, automation, and tech consulting solutions.

The stock has a current P/E ratio of 43.1, compared to its 5-year P/E of 48.0, suggesting it may be trading below its historical valuation. It shows strong profitability with a Return on Capital Employed (ROCE) of 20.3% and Return on Equity (ROE) of 16.0%. Additionally, its debt-to-equity ratio is low at 0.14, indicating a strong financial position and limited reliance on debt.

L&T Technology Services Ltd

L&T Technology Services Ltd is a leading Indian engineering research and development (ER&D) and technology services company, headquartered in Vadodara, Gujarat. A subsidiary of Larsen & Toubro (L&T), LTTS provides a wide range of engineering and digital solutions—including software and digital engineering, embedded systems, engineering analytics, product design and testing, and plant engineering services—to global clients across industries

The stock has a current P/E ratio of 31.5, compared to its 5-year P/E of 39.0, suggesting it may be trading below its historical valuation. It shows strong profitability with a Return on Capital Employed (ROCE) of 28.3% and Return on Equity (ROE) of 22.2%. Additionally, its debt-to-equity ratio is low at 0.10, indicating a strong financial position and limited reliance on debt.

Dixon Technologies (India) Ltd

Dixon Technologies (India) Ltd is a major Indian electronics manufacturing services (EMS) company based in Noida that makes consumer electronics and appliances for global and domestic OEMs. Its manufacturing portfolio includes LED TVs, mobile phones, washing machines, lighting products, and security systems, with end‑to‑end design, assembly, and logistics solutions. 

The stock has a current P/E ratio of 50.3, compared to its 5-year P/E of 124, suggesting it may be trading below its historical valuation. It shows strong profitability with a Return on Capital Employed (ROCE) of 40.0% and Return on Equity (ROE) of 32.8%. Additionally, its debt-to-equity ratio is low at 0.34, indicating a strong financial position and limited reliance on debt.

Thermax Ltd

Thermax Ltd is an Indian multinational engineering firm headquartered in Pune, specializing in energy and environmental solutions such as boilers, heaters, heat exchangers, water and wastewater treatment plants, and air pollution control systems. The company serves industrial and utility customers worldwide with products and services that support clean energy, efficient power generation, and sustainable manufacturing.

The stock has a current P/E ratio of 55.0, compared to its 5-year P/E of 69.8, suggesting it may be trading below its historical valuation. It shows strong profitability with a Return on Capital Employed (ROCE) of 16.2% and Return on Equity (ROE) of 13.6%. Additionally, its debt-to-equity ratio is low at 0.36, indicating a strong financial position and limited reliance on debt.

Motherson Sumi Wiring India Ltd

Motherson Sumi Wiring India Ltd (MSWIL) is a leading Indian automotive wiring harness and electrical systems manufacturer formed from the demerger of the wiring business from Samvardhana Motherson International. It produces integrated wiring harnesses and electrical distribution systems for major original equipment manufacturers (OEMs), including solutions for traditional, hybrid, and electric vehicles.

The stock has a current P/E ratio of 48.2, compared to its 5-year P/E of 50.8, suggesting it may be trading below its historical valuation. It shows strong profitability with a Return on Capital Employed (ROCE) of 42.5% and Return on Equity (ROE) of 35.9%. Additionally, its debt-to-equity ratio is low at 0.14, indicating a strong financial position and limited reliance on debt.

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