5 Under ₹200 Stocks Trading Below 5-Year Median P/E Ratio: A Potential Buy?

The Price-to-Earnings (P/E) ratio is a key metric used to assess a company’s valuation. It compares a company’s share price with its earnings per share (EPS). A higher P/E ratio often reflects growth expectations, while a lower P/E ratio may indicate undervaluation or slower growth. Currently, five small-cap stocks priced under ₹200 are trading below their 5-year P/E averages, offering potential investment opportunities. Here’s a closer look at these stocks:

Lloyds Enterprises Limited

With a market capitalization of Rs. 7,915.17 crore, the shares of Lloyds Enterprises Limited were trading at Rs. 62.22 per equity share, down nearly 2.64 percent from the previous day’s close price of Rs. 63.91. The company’s trailing twelve months (TTM) price-to-earnings (PE) ratio is currently at 33.6, which is lower than its 3-year average PE of 56.8 and significantly below its 5-year average PE of 64.9, indicating a valuation discount.

Lloyds Enterprises Limited is primarily engaged in the trading of iron and steel products, including coils, sheets, and beams, along with investment activities in shares and securities. The company has also diversified into real estate development, leveraging its presence in the larger Lloyds Group.

Suzlon Energy Limited

With a market capitalization of Rs. 67,464.42 crore, the shares of Suzlon Energy Limited were trading at Rs. 49.20 per equity share, down nearly 3.40 percent from the previous day’s close price of Rs. 50.93. Suzlon Energy Limited’s TTM PE ratio is currently at 23, which is significantly below its 5-year average PE of 88.2, indicating a valuation discount.

Suzlon Energy Limited specializes in developing, manufacturing, and supplying wind turbine generators (WTGs), rotor blades, tubular towers, hubs, and providing operation, maintenance, erection, and commissioning services. The company offers end-to-end wind energy solutions globally.

Patel Engineering Limited

With a market capitalization of Rs. 2,680.77 crore, the shares of Patel Engineering Limited were trading at Rs. 27.02 per equity share, down nearly 2.35 percent from the previous day’s close price of Rs. 27.67. Patel Engineering Limited’s TTM PE ratio is currently at 7.22, which is lower than its 3-year average PE of 17.3 and significantly below its 5-year average PE of 17.2, indicating a valuation discount.

Patel Engineering Limited is involved in the construction of hydroelectric projects, tunnels, dams, barrages, underground works, expressways, bridges, buildings, real estate development, and EPC contracts for power, irrigation, and transportation sectors in India and abroad.

JTL Industries Limited

With a market capitalization of Rs. 1,980.89 crore, the shares of JTL Industries Limited were trading at Rs. 51.85 per equity share, down nearly 1.44 percent from the previous day’s close price of Rs. 52.61. JTL Industries Limited’s TTM PE ratio is currently at 28.8, which is lower than its 3-year average PE of 30.4 and significantly below its 5-year average PE of 29.5, indicating a valuation discount.

JTL Industries Limited engages in manufacturing and exporting mild steel pipes, tubes, sheets, solar module structures, GI, color-coated sheets, and roofing and cladding products. The company serves the infrastructure, agriculture, water distribution, and solar energy markets domestically and internationally.

Hathway Cable & Datacom Limited

With a market capitalization of Rs. 2,141.83 crore, the shares of Hathway Cable & Datacom Limited were trading at Rs. 12.10 per equity share, down nearly 0.49 percent from the previous day’s close price of Rs. 12.16. Hathway Cable & Datacom Limited’s TTM PE ratio is currently at 22.6, which is lower than its 3-year average PE of 34 and significantly below its 5-year average PE of 24.5, indicating a valuation discount.

Hathway Cable & Datacom Limited provides cable television, broadband internet, and digital entertainment services through hybrid fiber-coaxial networks across more than 100 cities. The company also operates enterprise connectivity solutions for SMEs, residential, and commercial customers in India.

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