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10 Small-Cap Stocks Trading Below Industry PE: Potential Gains Up to 43%

Published: July 20, 2025 | Category: real estate news
10 Small-Cap Stocks Trading Below Industry PE: Potential Gains Up to 43%

Several BSE Small-Cap stocks are trading at lower price-to-earnings (PE) ratios than their industry averages, making them attractive for value investors. According to Trendlyne, names like Apollo Tyres, PNB Housing Finance, and Brigade Enterprises could see upside of up to 43% based on broker targets. These stocks offer a compelling opportunity for investors looking to capitalize on undervalued assets.

National Aluminium, currently trading at Rs 188, has an average target price of Rs 221 set by brokers, indicating an upside of 17%. The PE of the stock is at 6.56, while the industry PE is at 10.5. This suggests that the stock is undervalued relative to its peers, making it a potential buy for value investors.

NLC India, trading at Rs 233, has an average target price of Rs 304, indicating an upside potential of 30%. The PE of the stock is at 12.3, while the industry PE is at 21.1. This significant upside potential, coupled with a lower PE ratio, makes NLC India an attractive investment option.

IRB Infrastructure Developers, currently trading at Rs 48, has an average target price of Rs 62, showing an upside potential of 28%. The PE of the stock is at 4.5, while the industry PE is at 7.6. This low PE ratio and significant upside potential make IRB Infra a promising choice for investors.

Apollo Tyres, currently trading at Rs 455, has an average target price of Rs 523, indicating an upside of 15%. The PE of the stock is at 25.7, while the industry PE is at 31.3. This suggests that the stock is undervalued relative to its peers and could be a good buy for long-term investors.

PNB Housing Finance, trading at Rs 1,082, has an average target price of Rs 1,226, implying an upside of 13%. The PE of the stock is at 14.5, while the industry PE is at 29.8. This lower PE ratio and the potential for growth make PNB Housing Finance an attractive investment.

Brigade Enterprises, currently trading at Rs 1,112, has an average target price of Rs 1,375, signalling an upside of 24%. The PE of the stock is at 39.6, while the industry PE is at 47.8. This significant upside potential and a lower PE ratio make Brigade Enterprises a compelling buy for investors.

Inox Wind, trading at Rs 165, has an average target price of Rs 236, indicating an upside of 43%. The PE of the stock is at 33.8, while the industry PE is at 33.9. This high upside potential and a PE ratio that is on par with the industry average make Inox Wind a strong investment candidate.

Pfizer, currently trading at Rs 5,319, has an average target price of Rs 6,247, indicating an upside of 17%. The PE of the stock is at 31.7, while the industry PE is at 43.4. This suggests that the stock is undervalued relative to its peers and could be a good buy for long-term investors.

Investors looking to capitalize on these undervalued stocks should consider the potential risks and conduct thorough research. It is always advisable to consult with financial advisors before making investment decisions. These stocks, with their lower PE ratios and significant upside potential, offer a promising opportunity for value investors.

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Frequently Asked Questions

1. What is
PE ratio and why is it important? A: The Price-to-Earnings (PE) ratio is a valuation metric that compares a company's current share price to its earnings per share (EPS). It is important because it helps investors understand whether a stock is overvalued or undervalued relative to its peers. A lower PE ratio can indicate that a stock is undervalued and has potential for growth.
2. What are the benefits of investing in small-cap stocks?
Small-cap stocks can offer higher growth potential and greater upside compared to larger, more established companies. They often have more room to grow and can be less affected by market fluctuations. However, they also come with higher risks and volatility.
3. How do broker targets influence stock prices?
Broker targets, or price targets, are estimates set by financial analysts for where they believe a stock's price will go in the future. These targets can influence investor sentiment and trading activity, potentially impacting the stock price. Positive broker targets can boost investor confidence and drive the stock price up.
4. What is value investing and how does it work?
Value investing is a strategy that involves buying stocks that appear to be undervalued by the market. Investors using this strategy look for companies with strong fundamentals but low stock prices, believing that the market will eventually recognize the true value of these stocks and drive their prices up.
5. How can I identify undervalued stocks?
Identifying undervalued stocks involves analyzing financial metrics such as the PE ratio, price-to-book ratio, and dividend yield. Investors should also consider the company's financial health, growth prospects, and industry trends. Consulting with financial advisors and using tools like Trendlyne can also help in identifying undervalued stocks.