Stocks with PEG ratios below 1 represent hidden gems in today’s market, offering growth potential at a discount. These opportunities signal companies whose future earnings prospects aren’t fully reflected in their current valuations, providing investors a margin of safety while positioning for potential market revaluation.
1. Mitsu Chem Plast Ltd
Incorporated in 1988 and based in Mumbai, Mitsu Chem Plast Ltd., specialises in manufacturing rubber and plastic products. The company produces blow-moulded and injection-moulded products, catering to the growing demand for plastics in India. The company focuses on sustainable practices, innovation, and quality. Mitsu Chem also prioritises employee welfare and environmental safety, striving for continuous improvement in its operations to meet industry standards and market demands.
Mitsu Chem Plast Limited’s revenue from operations has increased by 0.6 percent from Rs. 309 crore in FY23 to Rs. 311 crore in FY24. The company’s net profit has decreased from Rs. 12 crore in FY23 to Rs. 9 crore in FY24, which has declined by 25 percent.
The company’s performance in the trailing twelve months (TTM) shows modest growth in sales at 2% and profit at 4%, while experiencing a significant stock price decline of -40%. Despite market challenges, it maintained a solid return on equity of 13%. The stock currently trades at a PEG of 0.98.
With a market capitalisation of Rs. 155 crores, Mitsu Chem Plast Limited’s share price is trading at Rs. 114 per equity share.
2. DMR Hydroengineering & Infrastructures Ltd
DMR Hydroengineering & Infrastructures Ltd., is an engineering company specialising in hydroelectric power projects and infrastructure development. Offering services like design, consultancy, project management, and execution, DMR focuses on water resource management in the energy sector.
The company collaborates with both the government and private sectors to improve infrastructure capabilities. DMR is committed to sustainable development by providing efficient engineering solutions that support the responsible use of water resources, contributing to community welfare through infrastructure improvements.
DMR Limited’s revenue from operations has increased by 60.2 percent from Rs. 4.38 crore in FY23 to Rs. 7.02 crore in FY24. The company’s net profit has increased from Rs. 0.77 crore in FY23 to Rs. 1.54 crore in FY24, which has grown by 100 percent.
The company’s trailing twelve months (TTM) shows exceptional performance with remarkable sales growth of 59% and profit growth of 89%. The stock price surged by 63%, alongside a strong return on equity of 21%. The stock currently trades at a PEG of 0.98.
With a market capitalisation of Rs. 59.3 crores, DMR Limited’s share price is trading at Rs. 149 per equity share.
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3. Silgo Retail Ltd
Silgo Retail Ltd., is a multi-channel retail company offering a wide range of consumer goods through both online and offline platforms. The company focuses on enhancing customer experiences by providing a variety of products tailored to market demands. With an emphasis on customer service, Silgo Retail utilises technology to streamline operations and boost customer engagement.
In addition to its business goals, the company is committed to social responsibility initiatives, supporting local communities through outreach programs and sustainable business practices.
Silgo Retail Limited’s revenue from operations has increased by 2.8 percent from Rs. 34.07 crore in FY23 to Rs. 35.03 crore in FY24. The company’s net profit has decreased from Rs. 2.35 crore in FY23 to Rs. 3.15 crore in FY24, which has declined by 34.04 percent.
The company’s trailing twelve months (TTM) presents mixed results with a decline in sales growth at 5%, though profit growth remained strong at 32%. The stock price showed remarkable performance with a 77% increase while maintaining a modest 7% return on equity. The stock currently trades at a PEG of 0.97.
With a market capitalisation of Rs. 70.4 crores, Silgo Retail Limited’s share price is trading at Rs. 38.1 per equity share.
Written By Fazal Ul Vahab C H
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