Synopsis: NALCO, Torrent, and Dixon, and three other stocks have PEG ratios below 1, backed by strong ROE and ROCE, highlighting undervaluation while efficiently using equity and overall capital.
The PEG ratio (Price/Earnings-to-Growth) measures a stock’s valuation relative to its expected earnings growth. A PEG below 1 suggests potential undervaluation. ROE (Return on Equity) and ROCE (Return on Capital Employed) complement this by showing how efficiently a company generates profits from equity and total capital.
Stocks like NALCO, Torrent, Dixon and other stocks with PEG ratios under 1, combined with strong ROE and ROCE, indicate undervaluation while efficiently utilizing both equity and overall capital. These metrics help investors identify companies that are not only cheap but also financially robust and growth-ready. Here is the list of stocks with strong fundamentals and PEG ratio less than 1
Torrent Power Ltd
Torrent Power Ltd is a leading integrated power utility company in India with a presence across generation, transmission, and distribution of power. Its operations are spread across the states of Gujarat, Maharashtra, Uttar Pradesh, and Karnataka. It is a part of Torrent Group, which has a presence across the pharmaceutical, power, and city gas distribution businesses.
With a market capitalization of Rs 72,358 crore, Torrent Power Ltd’s shares opened at Rs 1,425.90 per share, down by 0.10 percent from its previous day’s close price. The stock has a PEG ratio of 0.47, supported by a strong ROE of 19 percent and ROCE of 16 percent, indicating it is undervalued while efficiently using both equity and capital.
Dixon Technologies (India) Ltd
Dixon Technologies (India) Limited, incorporated in 1993, is an EMS company with operations in the electronic products vertical, such as consumer electronics, lighting, home appliances, open-circuit television cameras (CCTVs), and mobile phones. It also undertakes reverse logistics operations. Besides, it manufactures security surveillance equipment, wearables & audibles, and AC-PCBs.
With a market capitalization of Rs 70,759 crore, Dixon Technologies (India) Ltd’s shares opened at Rs 11,749 per share, up by 0.37 percent from its previous day’s close price. The stock has a PEG ratio of 0.85, supported by a strong ROE of 32.8 percent and ROCE of 40 percent, indicating it is undervalued while efficiently using both equity and capital.
National Aluminum Company Ltd
Incorporated in 1981, National Aluminum Company Limited (NALCO) is a Navaratna Central Public Sector Enterprise under the Ministry of Mines. It is one of the largest integrated Bauxite-Alumina-Aluminum-Power Complexes in India and one of the largest integrated primary producers of aluminum in Asia.
With a market capitalization of Rs 68,001 crore, National Aluminum Company Ltd’s shares opened at Rs 368 per share, flat from its previous day’s close price. The stock has a PEG ratio of 0.51, supported by a strong ROE of 32.7 percent and ROCE of 44 percent, indicating it is undervalued while efficiently using both equity and capital.
Suzlon Energy Ltd
Suzlon is one of the leading global renewable energy solutions providers. It is a vertically integrated WTG manufacturer. It also undertakes installation and O&M of all WTG sales. Operations include design development and manufacturing of all major components, including rotor blades, tubular towers, generators, control equipment, gears, and nacelles.
With a market capitalization of Rs 64,642 crore, Suzlon Energy Ltd’s shares opened at Rs 47.39 per share, up by 0.04 percent from its previous day’s close price. The stock has a PEG ratio of 0.10, supported by a strong ROE of 41.4 percent and ROCE of 32.5 percent, indicating it is undervalued while efficiently using both equity and capital.
Madras Rubber Factory Limited
MRF, India’s largest manufacturer of automotive tyres and tubes, where it has an installed tyre manufacturing capacity of 95.85 million tyres and tubes and a manufacturing capacity of 47.90 million units as on March 31, 2025, spread over nine plants across India. The company’s other business operations consist of manufacturing pre-cured treads, tread rubber, and specialty paints, among others.
With a market capitalization of Rs 64,129 crore, Madras Rubber Factory Limited’s shares opened at Rs 151700 per share, down by 0.06 percent from its previous day’s close price. The stock has a PEG ratio of 0.56, supported by a strong ROE of 10.6 percent and ROCE of 13.6 percent, indicating it is undervalued while efficiently using both equity and capital.
JSW Infrastructure Ltd
JSW Infrastructure Limited, a key entity of the JSW Group, is India’s second‐largest private commercial port operator, renowned for its environmentally sustainable seaports and terminals. The Company operates twelve strategically located port concessions along India’s west and east coasts, complemented by an international presence with a 465,000 cubic meter liquid tank storage terminal and two O&M contracts for port terminals in the UAE.
With a market capitalization of Rs 54,833 crore, JSW InfrastructureLimited’s shares opened at Rs 261.85 per share, flat from its previous day’s close price. The stock has a PEG ratio of 0.53, supported by a strong ROE of 16.2 percent and ROCE of 13.9 percent, indicating it is undervalued while efficiently using both equity and capital.
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