Synopsis:
Some strong and well-known companies like TCS, ITC, NTPC, HAL, and Tata Motors are currently trading cheaper than most other companies in their industries. Even though their stocks are undervalued, these companies are performing well with good profits and returns. This could be a good chance for investors to buy quality stocks at reasonable prices.
1. TCS
Tata Consultancy Services Limited (TCS) is a global IT services and consulting company based in Mumbai, India. TCS operates across the Americas, Europe, India, and beyond, serving industries such as banking, healthcare, retail, manufacturing, and technology.
It offers IT solutions including cloud services, cybersecurity, data analytics, enterprise applications, IoT, and digital engineering. The company also delivers smart city solutions, blockchain services, and AI-driven automation tools.
The stock delivered an ROE and ROCE of 52.38 percent and 64.63 percent respectively, and is currently trading at a P/E of 22.05x as compared to its industry average of 28.79x.
2. ITC
ITC Ltd is a diversified Indian conglomerate with businesses spanning FMCG, hotels, paper and packaging, agri-products, IT services, and real estate. Its product range includes cigarettes, snacks, beverages, personal care, stationery, and incense. The company also operates hotel chains, exports agri-products, and provides IT and project management services.
The stock delivered an ROE and ROCE of 27.32 percent and 36.79 percent respectively, and is currently trading at a P/E of 26.11x as compared to its industry average of 42x.
3. NTPC
NTPC Ltd stands as the largest power producer in India, harnessing energy from a diverse mix of sources including coal, gas, hydro, solar, wind, nuclear, and other renewables. The company primarily sells electricity in bulk to both state and private distributors.
In addition to generating power, NTPC is actively involved in energy trading, coal mining, oil and gas exploration, and provides consultancy and project management services within the energy sector.
The stock delivered an ROE and ROCE of 13.59 percent and 10.76 percent respectively, and is currently trading at a P/E of 13.52x as compared to its industry average of 39.37x.
4. Hindustan Aeronautics
Hindustan Aeronautics Limited (HAL) is an important Indian aerospace and defence organisation. HAL designs, manufactures, and services aircraft, helicopters, aero-engines, and avionics. HAL produces components, including cryogenic engines and cruise missile guidance.
HAL provides MRO services for aircraft and powerplants. HAL is engaged in the defence and civil aviation and has also been involved in the space sector, which includes Articulated Wall Climbing Robots, Exo-atmospheric Multiple Kill Vehicle, and numerous Export programs.
The stock delivered an ROE and ROCE of 26.07 percent and 33.87 percent respectively, and is currently trading at a P/E of 35.51x as compared to its industry average of 70x.
5. Tata Motors
Tata Motors Ltd is a global automotive company that designs and manufactures a wide range of vehicles, including passenger cars, SUVs, commercial vehicles, electric vehicles, and defense vehicles.
It also provides vehicle financing, IT, and insurance services. Its brands include Tata, Jaguar, Land Rover, Nexon, Harrier, and more, serving customers across India and international markets.
The stock delivered an ROE and ROCE of 28.08 percent and 19.97 percent respectively, and is currently trading at a P/E of 8.69x as compared to its industry average of 31.82x.
Written by Satyajeet Mukherjee
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post 5 Fundamentally Strong Stocks Trading Below Their Industry PE to Add to Your Watchlist appeared first on Trade Brains.