Stocks With a Low PEG Ratio That Could Be Worth Watching

Stock valuation metrics can sometimes feel like a maze, but one measure that keeps things straightforward is the Price-to-Earnings Growth (PEG) ratio. This financial metric helps investors compare a company’s price-to-earnings (P/E) ratio with its expected earnings growth. A PEG ratio of 1 typically suggests a stock is fairly valued, while anything below that could indicate undervaluation relative to its growth potential.

Several Indian stocks currently have a PEG ratio under 1, hinting at possible undervaluation. Here are some worth keeping an eye on.

Canara Bank Ltd: A Public Sector Giant

Canara Bank, one of India’s oldest and most established public sector banks, has been serving customers since 1906. Headquartered in Bangalore, it has a widespread domestic and international footprint, offering a range of financial services, including retail and corporate banking.

• Stock Performance: The stock ended Friday’s trading session at Rs. 94.06, down by 1.8%.
• 52-Week Range: The stock has seen fluctuations within the range of Rs. 73 to Rs. 113.
• PEG Ratio: Currently at 0.06, making it one of the lowest among banking stocks.

Despite market volatility, Canara Bank’s strong fundamentals and low PEG ratio suggest potential long-term value, particularly for investors looking for undervalued banking stocks.

Lloyds Engineering Works Ltd: A Steady Engineering Play

Lloyds Engineering Works Ltd specializes in manufacturing and engineering solutions for industries such as construction, steel, and power. The company produces cranes, material handling equipment, and other industrial machinery.

• Stock Performance: Closed at Rs. 75.97, up by 1.87%.
• 52-Week Range: Rs. 60 – Rs. 88.
• PEG Ratio: 0.93, indicating the stock is still trading below its projected earnings growth.

With an increasing focus on infrastructure development, demand for Lloyds Engineering’s products could grow, potentially making this stock an interesting value play.

Patel Engineering Ltd: Infrastructure at the Forefront

Established in 1949, Patel Engineering Ltd is a major player in civil engineering and construction, specializing in hydroelectric power plants, roads, bridges, and dams.

• Stock Performance: Closed at Rs. 47.42, down by 1.68%.
• 52-Week Range: Rs. 30 – Rs. 58.
• PEG Ratio: 0.98, suggesting the stock is slightly undervalued based on earnings expectations.

Given the Indian government’s push for infrastructure development, Patel Engineering could benefit from continued investments in construction projects.

Gateway Distriparks Ltd: A Logistics Player to Watch

Gateway Distriparks Ltd (GDL) operates in the logistics sector, providing container freight stations (CFS), inland container depots (ICD), and cold chain logistics. The company supports import-export businesses with services like warehousing and transportation.

• Stock Performance: Closed at Rs. 75, down by 1.47%.
• 52-Week Range: Rs. 65 – Rs. 85.
• PEG Ratio: 0.89, indicating potential value in the logistics sector.

With e-commerce and supply chain efficiency becoming critical, Gateway Distriparks could see increased demand in the coming years.

JTL Industries Ltd: Steel Manufacturing on the Rise

JTL Industries Ltd is a major manufacturer of steel pipes and tubes in India, serving industries such as construction, automotive, and infrastructure. The company focuses on producing high-quality products like galvanized steel pipes and precision tubes.

• Stock Performance: Closed at Rs. 100, down by 1.61%.
• 52-Week Range: Rs. 85 – Rs. 120.
• PEG Ratio: 0.65, suggesting the stock is relatively undervalued compared to its growth prospects.

Steel demand is closely linked to economic growth, and with ongoing infrastructure projects, JTL Industries may see solid performance in the medium to long term.