November 16, 2024
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Stock Market

Bluechip stocks with PEG Ratio less than 1 to add to your watchlist

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Stock Market

Bluechip stocks with PEG Ratio less than 1 to add to your watchlist

Blue-chip stocks are shares of well-established companies known for their reliability, strong financial performance, and ability to generate consistent revenue and profits over time. These companies typically have a large market capitalization and are leaders in its respective industries, making them a popular choice for conservative investors seeking stability, especially during market downturns.

The Price/Earnings to Growth (PEG) ratio is a valuable metric for evaluating blue-chip stocks, particularly those with a PEG ratio of less than 1. This indicates that the stock may be undervalued relative to its earnings growth potential, suggesting a favorable investment opportunity in a challenging market landscape.

1. Persistent Systems Limited

Persistent Systems Limited is a leading provider of software engineering and strategy services. The company specializes in helping businesses modernize their operations through innovative software solutions.

With a market capitalization of Rs. 89,048.79 crores, Persistent Systems Limited’s share price closed at Rs. 5,713.75 per equity share.

Persistent Systems Limited’s revenue from operations has increased by 17.61 percent from Rs. 8,351 crore in FY23 to Rs. 9,822 crore in FY24. The company’s net profit has increased from Rs. 921 crore in FY23 to Rs. 1,093 crore in FY24, which has grown by 18.68 percent.

The company’s revenue and net profit have grown at a CAGR of 23.88% and 25.43%, respectively, over the last five years. Persistent Systems Limited has paid a total dividend of Rs. 42 in 2024. The company has a PEG ratio of 0.48.

2. Petronet LNG Limited

Petronet LNG Limited is a prominent Indian energy company focused on importing and regasifying liquefied natural gas (LNG). The company operates two major terminals in Dahej, Gujarat, and Kochi, Kerala. The Dahej terminal has a capacity of 17.5 million tonnes per year, while the Kochi terminal can handle 5 million tonnes annually. Petronet plays a crucial role in India’s energy supply chain.

With a market capitalization of Rs. 47,062.50 crores, Petronet LNG Limited’s share price closed at Rs. 313.75 per equity share.

Petronet LNG Limited’s revenue from operations has decreased by 11.97 percent from Rs. 59,899 crore in FY23 to Rs. 52,728 crore in FY24. The company’s net profit has increased from Rs. 3,240 crore in FY23 to Rs. 3,536 crore in FY24, which has grown by 9.14 percent.

The company’s revenue and net profit have grown at a CAGR of 6.55% and 10.41%, respectively, over the last five years. Petronet LNG Limited has paid a total dividend of Rs. 10 in 2024. The company has a PEG ratio of 0.94.