One of the effective methods for assessing whether a stock is undervalued or overvalued is by analysing key metrics such as the Price-to-Earnings (P/E) ratio and the industry P/E average. The P/E ratio or Price-to-Earnings ratio compares the current share price to the earnings per share (EPS) of a company, serving as a widely recognised indicator for determining the value of a stock.
When a company’s P/E ratio is significantly higher than the industry average, it may indicate that the stock is overvalued, as investors are paying a premium for its earnings. Conversely, a substantially lower P/E ratio relative to the industry average could indicate that the stock is undervalued, potentially signalling a buying opportunity.
Following are a few low P/E stocks held by ace investors that witnessed a high net profit growth of more than 200 percent YoY in Q4 FY25:
Dhabriya Polywood Limited
With a market cap of Rs. 405.58 crores, the stock moved down by around 2.70 percent on BSE to close in the red at Rs. 374.70 on Friday. As per the latest shareholding pattern, the ace investor Ashish Kacholia holds a 6.67 percent stake in the company.
Dhabriya Polywood reported a net profit of Rs. 5.4 crores in Q4 FY25, a growth of around 35 percent YoY from Rs. 4 crore in Q4 FY24. Further, the stock has a P/E ratio of 23.4, compared to the industry’s P/E ratio of 25.8. Dhabriya Polywood Limited is engaged in the manufacturing and selling of plastic products and modular furniture.
Knowledge Marine & Engineering Works Limited
With a market cap of Rs. 1,760.56 crores, the stock moved down by around 2.96 percent on BSE to close in the red at Rs. 1630.00 on Friday. As per the latest shareholding pattern, the ace investor Ashish Kacholia holds a 2.78 percent stake in the company.
Knowledge Marine reported a net profit of Rs. 11 crores in Q4 FY25, a growth of around 57 percent YoY from Rs. 7 crores in Q4 FY24. Further, the stock has a P/E ratio of 36.2, compared to the industry’s P/E ratio of 36.6.
Knowledge Marine & Engineering Works Limited provides dredging services, owning and operating marine craft, and repairing, maintaining and refitting marine crafts and marine infrastructure.
TBI Corn Limited
With a market cap of Rs. 216.27 crores, the stock moved up by around 1.97 percent on NSE to close in the green at Rs. 119.10 on Friday. As per the latest shareholding pattern, the ace investor Ashish Kacholia holds a 4.22 percent stake in the company.
TBI Corn reported a net profit of Rs. 6 crores in H2 FY25, a growth of around 100 percent YoY from Rs. 3 crores in H2 FY24. Further, the stock has a P/E ratio of 16.2, compared to the industry’s P/E ratio of 22.1.
TBI Corn Limited is engaged in the business of a diverse range of corn products, including cleaned and fat-free corn grits/meal, corn flakes, stone-free broken maize & corn flour and turmeric finger, all manufactured without chemical additives or preservatives and GMO-free.
Man Industries (India) Limited
With a market cap of Rs. 2,622.75 crores, the stock moved down by around 0.48 percent on BSE to close in the red at Rs. 405.15 on Friday. As per the latest shareholding pattern, the ace investor Ashish Kacholia holds a 2.03 percent stake in the company.
Man Industries reported a net profit of Rs. 68 crores in Q4 FY25, a growth of around 183 percent YoY from Rs. 24 crores in Q4 FY24. Further, the stock has a P/E ratio of 16.5, compared to the industry’s P/E ratio of 23.3.
Man Industries (India) Limited, the flagship company of Man Group, is engaged in the business of manufacturing, processing and trading of submerged arc-welded pipes & steel products. It is one of the largest players in LSAW pipes, spirally welded pipes and coating systems, and one of the largest manufacturers and exporters of large-diameter carbon steel line pipes (LSAW, HSAW and ERW).
Mangalore Chemicals & Fertilizers Limited
With a market cap of Rs. 3,193.39 crores, the stock moved up by around 0.41 percent on BSE to close in the green at Rs. 269.45 on Friday. As per the latest shareholding pattern, the ace investor Dolly Khanna holds a 2.18 percent stake in the company.
Mangalore Chemicals reported a net profit of Rs. 16 crores in Q4 FY25, a growth of around 220 percent YoY from Rs. 5 crore in Q4 FY24. Further, the stock has a P/E ratio of 22.5, compared to the industry’s P/E ratio of 28.2. Mangalore Chemicals and Fertilizers Limited is primarily engaged in the business of manufacturing, purchasing and sale of fertilisers.
Written by Shivani Singh
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