Micro-cap stocks with a PEG ratio below one indicate potential undervaluation, suggesting that the market may underestimate their growth prospects. A low PEG ratio often reflects strong earnings growth relative to the stock price, making these stocks appealing to investors.
Such stocks can attract both domestic and foreign investors, leading to increased liquidity and potential price appreciation. As market sentiment shifts, these undervalued stocks may gain attention, resulting in further investment and growth opportunities. Investors often see them as attractive options for long-term gains, especially if they believe in the companies’ future performance.
Nile Ltd
Nile Limited, established in 1984 and based in Hyderabad, specializes in manufacturing pure lead and lead alloys. The company operates two lead recycling plants with a combined capacity of 107,000 tons per year. Additionally, Nile Limited engages in wind energy production through a 2MW wind farm in Andhra Pradesh.
The company has a PEG ratio of 0.96 which is less than 1. In Q1 FY25 Nile Ltd reported a 52.23 percent year-over-year increase in revenue from operations to Rs.245.48 crore and a 75 percent increase in net profit to Rs.8.96 crore, in the same period.
In Wednesday’s trading session, the company’s share price was closed at Rs.2,310 per share, a 2.93 percent down from its previous close.
Tembo Global Industries Limited
Tembo Global Industries Limited, established in 2010, specializes in manufacturing and fabricating metal products for various applications, including pipe support systems, HVAC, and anti-vibration systems. The company emphasizes high-quality standards and innovation, offering customized solutions.
The company has a PEG ratio of 0.67 which is less than 1. In Q1 FY25 Tembo Ltd reported a 60.55 percent year-over-year increase in revenue from operations to Rs.128.41 crore and a 219.64 percent increase in net profit to Rs.5.37 crore, in the same period.
In Wednesday’s trading session, the company’s share price closed at Rs.479.65 per share, a 1.99 percent down from its previous close.
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Aditya Birla Money Ltd
Aditya Birla Money Limited, incorporated in 1994, is a subsidiary of Aditya Birla Capital Limited and operates as a stock brokerage and financial services provider. The company offers equity and derivatives trading through NSE and BSE, along with portfolio management services. With a robust distribution network, it serves over 3,45,000 clients across India.
The company has a PEG ratio of 0.33 which is less than 1. In Q1 FY25, Aditya Birla Money Ltd reported interest income of Rs. 4,033 crore, reflecting a 24.64 percent increase year-over-year. The net profit for the same period reached Rs. 758.84 crore, representing a 16.96 percent increase compared to the previous year.
In Wednesday’s trading session, the company’s share price was closed at Rs.173.55 per share, a 1.98 percent down from its previous close.
Danlaw Technologies India Ltd
Danlaw Technologies India Limited, founded in 1992 and based in Hyderabad, specializes in computer-related services. The company operates with an authorized capital of INR 12 crore.
The company has a PEG ratio of 0.32 which is less than 1. In Q1 FY25 Danlaw Technologies India Ltd reported a 1.96 percent year-over-year increase in revenue from operations to Rs.47.30 crore and a 5.19 percent decrease in net profit to Rs.3.66 crore, in the same period.
In Wednesday’s trading session, the company’s share price closed at Rs.1,958.70 per share, a 4.92 percent up from its previous close.
Written by Santhosh
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