Synopsis:
Today, Nifty 50 and Sensex saw red due to heightened tariffs on Indian exports and weak performance in the IT and pharma sectors, but later recovered.
Here comes the great opportunity for investors to pick up stocks that are trading below the industry PE ratio however, one must consider the fundamentals and strength of earnings before investing.
What is the PE ratio?
The P/E ratio is a financial metric that helps investors assess how much they are paying for the company’s earnings. It is computed by dividing the current market price by earnings per share.
The following are the stocks that are trading less than the industry average:
Colgate Palmolive Ltd
Colgate-Palmolive India Ltd is engaged in the manufacturing and trading of toothpaste, tooth powder, toothbrush, mouthwash, and personal care products. With a market capitalization of Rs.63,536, the shares of Colgate Palmolive Limited are trading at a discount of 40 percent from its 52-week high of Rs.3,893.Currently, the stock’s PE ratio is 45, with an industry average of 52.
Tata Consultancy Services Ltd
Tata Consultancy Services is a part of the Tata group. It is engaged in IT services, consulting, and business solutions and offers a consulting-led, cognitive-powered, integrated portfolio of business, technology, and engineering services and solutions.
With a market capitalization of Rs.11,11,971, the shares of Tata Consultancy Services Ltd are trading at a discount of 32 percent from its 52 week high of Rs.4,585. Currently, the stock’s PE ratio is 22, with an industry average of 29.
Indus Tower Ltd
Indus Towers Limited is engaged in the business of setting up, operating, and maintaining wireless communication towers. With a market capitalization of Rs.91,843, the shares of Indus Tower Ltd are trading at a discount of 26 percent from its 52-week high of Rs.460. Currently, the stock’s PE ratio is 9, with an industry average of 21.
Computer Age Management Services Ltd
Company Age Management Services Ltd is engaged in mutual fund transfer agency. It provides investor services, distributor services, and asset management company services.
With a market capitalization of Rs.18,422, the shares of Company Age Management Services are trading at a discount of 30 percent from its 52-week high of Rs.5,367 Currently, the stock’s PE ratio is 41, with an industry average of 54.
Written by: Jhanavi Sivakumar
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