Top 5 Stocks with High Piotroski Score and Low PEG Ratios to Consider
Discover five promising stocks with a Piotroski score of 9 and PEG ratios below 1, indicating strong financial health and attractive valuations for long-term investors.
Real Estate:Five stocks are highlighted here based on a combination of strong fundamentals and attractive valuations. Each of these companies has a high Piotroski score of 9, reflecting solid financial performance, efficient operations, and healthy balance sheets. In addition, all the stocks have a PEG ratio below 1, which suggests that their current market prices may not fully reflect their future growth potential, making them appealing for long-term investors.
Fiem Industries Limited
With a market capitalization of Rs. 6,325 crore, the shares of Fiem Industries Limited closed at Rs. 2,403.35 per equity share, rising nearly 3 percent from its previous day’s close price of Rs. 2,335.80. Fiem Industries Limited has a high Piotroski score of 9 and a PEG ratio of 0.93. In terms of return ratios, the company’s ROCE and ROE stand at 27.8 percent and 21 percent, respectively. The company has an earnings per share (EPS) of Rs. 86.3, and its debt-to-equity ratio is 0.06x. Fiem Industries Limited is engaged in manufacturing automotive lighting, signaling equipment, rear-view mirrors, plastic and sheet metal components for two-wheelers, three-wheelers, four-wheelers, and commercial vehicles. The company also manufactures LED luminaires for indoor and outdoor lighting, display panels, and integrated passenger information systems for railways, metro trains, and buses, supplying major OEMs in India and overseas.
Nirlon Limited
With a market capitalization of Rs. 4,523 crore, the shares of Nirlon Limited closed at Rs. 501.90 per equity share, rising nearly 0.5 percent from its previous day’s close price of Rs. 499.20. Nirlon Limited has a high Piotroski score of 9 and a PEG ratio of 0.56. In terms of return ratios, the company’s ROCE and ROE stand at 30.2 percent and 59.9 percent, respectively. The company has an earnings per share (EPS) of Rs. 35.3, and its debt-to-equity ratio is 2.47x. Nirlon Limited is engaged in developing and managing commercial real estate, mainly Grade A industrial and IT parks. The company owns Nirlon Knowledge Park in Goregaon, Mumbai, and a majority stake in Nirlon House in Worli, leasing office spaces to large multinational and Indian corporate tenants while earning rental income and providing facility management services.
Force Motors Limited
With a market capitalization of Rs. 23,156 crore, the shares of Force Motors Limited closed at Rs. 17,768 per equity share, rising nearly 3 percent from its previous day’s close price of Rs. 17,294.85. Force Motors Limited has a high Piotroski score of 9 and a PEG ratio of 0.28. In terms of return ratios, the company’s ROCE and ROE stand at 30.0 percent and 20.8 percent, respectively. The company has an earnings per share (EPS) of Rs. 817, and it’s a debt-free company. Force Motors Limited is engaged in designing, developing, and manufacturing automotive components, aggregates, and vehicles. The company produces light commercial vehicles, multi-utility vehicles, vans, off-roaders, and high-precision engines and axles for global brands such as Mercedes-Benz and BMW, serving both domestic and export markets.
Subros Limited
With a market capitalization of Rs. 5,660 crore, the shares of Subros Limited closed at Rs. 867.65 per equity share, down nearly 0.5 percent from its previous day’s close price of Rs. 872.55. Subros Limited has a high Piotroski score of 9 and a PEG ratio of 0.53. In terms of return ratios, the company’s ROCE and ROE stand at 20 percent and 14.5 percent, respectively. The company has an earnings per share (EPS) of Rs. 24.6, and its debt-to-equity ratio is 0.02x. Subros Limited is engaged in manufacturing thermal products and complete air-conditioning systems for automotive and other applications. The company produces compressors, condensers, heat exchangers, HVAC units, and AC-related components, supplying passenger cars, trucks, buses, off-road vehicles, railways, and residential AC manufacturers as India’s leading integrated automotive AC solutions provider.
Lemon Tree Hotels Limited
With a market capitalization of Rs. 12,664 crore, the shares of Lemon Tree Hotels Limited closed at Rs. 159.85 per equity share, rising nearly 0.5 percent from its previous day’s close price of Rs. 158.95. Lemon Tree Hotels Limited has a high Piotroski score of 9 and a PEG ratio of 0.93. In terms of return ratios, the company’s ROCE and ROE stand at 13 percent and 18.4 percent, respectively. The company has an earnings per share (EPS) of Rs. 2.78, and its debt-to-equity ratio is 1.67x. Lemon Tree Hotels Limited is engaged in owning, leasing, and operating hotels across India under multiple brands in the midscale, upscale, and economy segments. The company runs hotels offering rooms, food and beverage, banquets, and related services for business and leisure travellers, with a growing presence in tier I and II cities and select international locations.
Frequently Asked Questions
What is a Piotroski score?
A Piotroski score is a financial metric that evaluates a company's financial strength based on nine criteria, including profitability, leverage, and operating efficiency. A score of 9 indicates strong financial health.
What is a PEG ratio?
The PEG ratio (Price/Earnings to Growth ratio) is a valuation metric that considers a company's P/E ratio and its expected growth rate. A PEG ratio below 1 suggests the stock may be undervalued.
Why are these stocks considered attractive for long-term investors?
These stocks are considered attractive for long-term investors due to their high Piotroski scores, indicating strong financial health, and low PEG ratios, suggesting potential undervaluation and future growth potential.
What are the main business activities of Fiem Industries Limited?
Fiem Industries Limited is primarily engaged in manufacturing automotive lighting, signaling equipment, rear-view mirrors, and other components for vehicles. They also produce LED luminaires and integrated passenger information systems for railways and public transport.
What is the significance of a debt-free company like Force Motors Limited?
A debt-free company like Force Motors Limited is significant because it indicates strong financial stability and reduced financial risk, which can be appealing to investors looking for secure investments.