Synopsis:
Mid-cap stocks like NALCO, KPIT Technologies, Authum Investment, and Apar Industries show PEG ratios below 1, suggesting attractive or fair valuations and strong growth potential, making them noteworthy additions to watchlist.
The PEG ratio (Price/Earnings to Growth ratio) is a valuation metric that compares a stock’s P/E ratio to its expected earnings growth rate. It helps assess whether a stock is overvalued or undervalued by factoring in future growth. A PEG ratio around 1 is typically considered fairly valued, below 1 suggests undervaluation, and above 1 may indicate the stock is expensive relative to its growth prospects.
Mid-cap stocks with a PEG ratio below 1 often signal strong growth potential that isn’t fully priced in, making them attractive candidates for further research. These companies typically offer a balance of scalability, improving profitability, and reasonable valuations.
National Aluminium Company Ltd (NALCO)
National Aluminium Company Ltd is a Navratna CPSE and one of India’s largest integrated aluminum producers, involved in bauxite mining, alumina refining, aluminum smelting, power generation, and downstream products. Known for its strong operational base and government backing, NALCO plays a key role in India’s metals sector and is a major exporter of alumina and aluminum products.
With market capitalization of Rs. 47,697 cr, the shares of National Aluminium Company Ltd are currently trading at Rs. 259 per share, from its previous close of Rs. 256.55 per share. With a PEG ratio of 0.37, the stock appears attractively valued, indicating strong earnings growth potential relative to its current price.
KPIT Technologies Ltd
KPIT Technologies is a global technology company specializing in automotive engineering and mobility solutions. It focuses on software, embedded systems, autonomous driving, electric powertrains, and connected vehicle technologies. Working closely with major global OEMs, KPIT is known for accelerating innovation in electric and intelligent mobility.
With market capitalization of Rs. 33,327 cr, the shares of KPIT Technologies Ltd are currently trading at Rs. 1,215 per share, from its previous close of Rs. 1,203 per share. With a PEG ratio of 0.97, the stock is priced close to its expected earnings growth, indicating a fairly valued position.
Authum Investment & Infrastructure Ltd
Authum Investment & Infrastructure Ltd operates as a non-banking financial company (NBFC) engaged in investment, lending, and financial services. It focuses on deploying capital across equity, debt, and infrastructure-linked opportunities. The company has gained visibility for its involvement in resolution processes of stressed assets and expansion within financial services.
With market capitalization of Rs. 45,861 cr, the shares of Authum Investment & Infrastructure Ltd are currently trading at Rs. 2,700 per share, from its previous close of Rs. 2,725.10 per share. With a PEG ratio of 0.13, the stock appears deeply undervalued relative to its strong earnings growth potential.
Apar Industries Ltd
Apar Industries is a diversified industrial manufacturer with a strong presence in power transmission conductors, specialty oils, cables, and polymers. Serving both domestic and global markets, the company supplies critical components used in power, infrastructure, and industrial segments. Apar is recognized for its technological capabilities and leadership in conductor and transformer oil segments worldwide.
With market capitalization of Rs. 37,233 cr, the shares of Apar Industries Ltd are currently trading at Rs. 9,269 per share, from its previous close of Rs. 9,330.10 per share. With a PEG ratio of 0.82, the stock appears undervalued, suggesting its growth potential may not be fully reflected in the current price.
Written by Manideep Appana
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