Stocks Under ₹100 With PE Ratios Lower Than the Industry Average to Keep on Your Radar

SYNOPSIS: The article includes stocks priced under ₹100 that have a P/E ratio lower than their respective industry P/E. This list includes stocks such as Websol Energy System, International Conveyors, NMDC, and more.

A stock can be considered overvalued by analysing key metrics such as the Price-to-Earnings (P/E) ratio in comparison to the industry average. The P/E ratio measures a company’s current share price relative to its earnings per share (EPS) and is a widely used indicator for assessing whether a stock is priced fairly or trading above its intrinsic value.

A lower P/E ratio compared to the industry average may indicate that a stock is undervalued, meaning its share price is low relative to its earnings. Buying such stocks can offer a potential buying opportunity, as the market may not yet have fully recognised the company’s true value; if the firm performs well or sentiment improves, the stock price may rise, allowing investors to benefit from capital appreciation. Here is the list of stocks to look out for

NMDC Ltd

National Mineral Development Corporation (NMDC) is a government-owned mining company and India’s largest iron ore producer. It operates major mines in Chhattisgarh and Karnataka and also engages in the exploration of other minerals like copper, rock phosphate, and diamonds. NMDC plays a critical role in supplying raw material to India’s steel industry.

The stock has a P/E ratio of 10.5, which is lower than the industry average of 22.2, indicating that the stock may be undervalued. Additionally, it has a strong ROCE of 29.6 percent, a high ROE of 23.6 percent, and a very low debt-to-equity ratio of 0.11, reflecting efficient management and a healthy financial position.

Websol Energy System Ltd

Websol Energy System Ltd. is a pioneering Indian manufacturer of monocrystalline solar photovoltaic (PV) cells and modules, established in 1990, known for its high-quality, reliable solar products for C&I and utility-scale projects, operating from a facility in Falta SEZ, West Bengal, and focused on significant capacity expansion for future growth in the clean energy sector. 

The stock has a P/E ratio of 17.2, which is lower than the industry average of 27.6, indicating that the stock may be undervalued. Additionally, it has a strong ROCE of 59.2 percent, a high ROE of 80.2 percent, and a low debt-to-equity ratio of 0.41, reflecting efficient management and a healthy financial position.

BCL Industries Ltd

BCL Industries operates in multiple sectors, including edible oils, distillery products, and real estate. It is known for its manufacturing of ethanol and other biofuels, contributing to India’s growing demand for alternative energy. The company also produces vanaspati, refined oils, and other agro-based products. It integrated operations and diversified revenue streams to provide a stable business foundation.

The stock has a P/E ratio of 8.36, which is lower than the industry average of 34.3, indicating that the stock may be undervalued. Additionally, it has a decent ROCE of 13.2 percent, a ROE of 13.0 percent, and a very low debt-to-equity ratio of 0.78.

V.L. Infraprojects Ltd

V.L. Infraprojects Ltd is an infrastructure development and construction company based in Ahmedabad, incorporated in 2014. It specialises in government projects, particularly water supply and irrigation infrastructure, and also handles residential buildings, roads, and gas supply projects. The company provides a range of services from project planning and construction to operation and maintenance. 

The stock has a P/E ratio of 5.81, which is lower than the industry average of 17.4, indicating that the stock may be undervalued. Additionally, it has a strong ROCE of 27.3 percent, a high ROE of 24.2 percent, and a low debt-to-equity ratio of 0.70, reflecting efficient management and a healthy financial position.

International Conveyors Ltd

International Conveyors Ltd (ICL) is an Indian-based global leader in manufacturing high-performance solid-woven, fire-retardant, and anti-static PVC conveyor belts, primarily for mining and other industries. The company has a large annual installed capacity and a significant share of the Indian market for underground mine conveyor belts. 

The stock has a P/E ratio of 7.66 which is lower than the industry average of 32.2, indicating that the stock may be undervalued. Additionally, it has a strong ROCE of 27.1 percent, a high ROE of 26.4 percent, and a low debt-to-equity ratio of 0.30, reflecting efficient management and a healthy financial position.

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