5 Undervalued Stocks with Potential for Long-Term Growth
Small-cap stocks trading below their five-year P/E ratios suggest potential undervaluation relative to historical norms. This offers investors a chance to identify companies that may deliver long-term growth at attractive valuations. Stocks across sectors like infrastructure, pharmaceuticals, industrial manufacturing, and engineering technology are currently below their five-year P/E ratios, indicating relatively lower valuations compared to their historical stock PEs.
IRB Infrastructure Developers Ltd
IRB Infrastructure Developers Ltd is an Indian company specializing in road and highway construction under Build-Operate-Transfer (BOT) and Hybrid Annuity Models. It develops and manages toll roads across India and is a mid-cap stock, often influenced by project awards and toll revenue performance. With a market capitalization of Rs. 23,956 cr, the shares of IRB Infrastructure Developers Ltd closed at Rs. 39.67 per share, down from its previous close of Rs. 40.14 per share. The stock’s current P/E of 27.6 is below its 5-year average of 32.4, suggesting it may be undervalued relative to its historical valuation.
Pfizer Ltd
Pfizer Ltd is the Indian arm of the global pharma giant Pfizer, engaged in manufacturing and marketing drugs, vaccines, anti-infectives, and specialty medicines. It is a large-cap stock with a steady earnings history, supported by new product launches and collaborations in India. With a market capitalization of Rs. 21,023 cr, the shares of Pfizer Ltd closed at Rs. 4,595.60 per share, down from its previous close of Rs. 4,723.30 per share. The stock P/E of 31.4 is below the five-year stock PE of 35.9, suggesting it may be undervalued relative to its historical valuation.
Jyoti CNC Automation Ltd
Jyoti CNC Automation Ltd is a leading Indian CNC machine manufacturer serving aerospace, defense, and general engineering sectors. The company has shown strong growth since its IPO, with solid revenue expansion and plans to increase production capacity. With a market capitalization of Rs. 18,202 cr, the shares of Jyoti CNC Automation Ltd closed at Rs. 800.40 per share, down from its previous close of Rs. 832.50 per share. The stock P/E of 61.5 is below the five-year stock PE of 84.5, suggesting it may be undervalued relative to its historical valuation.
HBL Engineering Ltd
HBL Engineering Ltd is an industrial technology firm known for batteries (lead, nickel-cadmium, defense, and aviation) and electronics for railways and safety systems. It has a global market share in industrial batteries and benefits from contracts like railway signaling and safety systems. With a market capitalization of Rs. 19,554 cr, the shares of HBL Engineering Ltd closed at Rs. 705.45 per share, down from its previous close of Rs. 726.25 per share. The stock P/E of 35.5 is below the five-year stock PE of 46.3, suggesting it may be undervalued relative to its historical valuation.
Anant Raj Ltd
Anant Raj Ltd is a Delhi-NCR-based real estate and infrastructure developer with projects in residential, commercial, and IT parks. It is expanding into data centers and digital infrastructure, with growth tied to property deliveries and strategic investments. With a market capitalization of Rs. 18,053 cr, the shares of Anant Raj Ltd closed at Rs. 501.65 per share, down from its previous close of Rs. 537.40 per share. The stock P/E of 41.5 is below the five-year stock PE of 45.9, suggesting it may be undervalued relative to its historical valuation.
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