Tata Motors, along with three other stocks boasting a PE ratio below 10, are prime candidates to consider adding to your watchlist
Tata Motors: The Price-to-Earnings (P/E) ratio is a key metric that measures a company’s stock price relative to its earnings, providing insight into how much investors are willing to pay for each unit of earnings. A lower P/E ratio, especially when below the industry average, can indicate that a stock is undervalued.
In this article, we will be focusing on companies with a P/E ratio under 10, as they may present attractive investment opportunities. The companies we have selected that meet this criterion include Tata Motors Limited, Kiran Vyapar Limited, Jindal Saw Limited, and KNR Constructions Limited.
Here are some stocks with a price-to-earnings ratio below 10 that could be worth considering for investment in 2025:
1. Tata Motors Limited
Tata Motors Limited has a market capitalization of Rs. 2,70,157.76 crores, with its shares closing at Rs. 733.90 per equity share, a decrease of approximately 2.48 percent from the previous day’s closing price of Rs. 752.55.
The company’s price-to-earnings ratio stands at 8.07, significantly lower than the industry average of 18. Additionally, Tata Motors Limited boasts a return on capital employed (ROCE) of 20.1 percent and a return on equity (ROE) of 49.4 percent.
Despite a 3.50 percent decrease in revenue from operations, from Rs. 1,05,129 crore in Q2 FY24 to Rs. 1,01,450 crore in Q2 FY25, Tata Motors Limited remains a global leader in automobile manufacturing, offering a diverse range of vehicles, including cars, trucks, buses, and defense vehicles, as well as cutting-edge electric vehicle solutions.
2. Kiran Vyapar Limited
Kiran Vyapar Limited, with a market capitalization of Rs. 709.39 crores, saw its sharesKiran Vyapar Limited boasts a price-to-earnings ratio of 8.62, significantly lower than the industry average of 21.2. Additionally, the company’s return on capital employed (ROCE) and return on equity (ROE) stand at 4.14 percent and 3.19 percent, respectively.
In terms of financial performance, Kiran Vyapar Limited has seen a remarkable increase in revenue from operations, soaring by 281.82 percent from Rs. 11 crore in Q2 FY24 to Rs. 42 crore in Q2 FY25. Furthermore, the company’s net profit has surged from Rs. 8 crore in Q2 FY24 to Rs. 33 crore in Q2 FY25, marking a remarkable growth of 312.50 percent.
Kiran Vyapar Limited is a distinguished non-deposit-accepting non-banking financial company (NBFC) based in India. The company is primarily involved in investments, trading in shares and securities, as well as providing loans and financing services.
3. Jindal Saw Limited
Jindal Saw Limited, with a market capitalization of Rs. 15,738.30 crores, saw its shares close at Rs. 246.10 per equity share, marking a decrease of approximately 3.53 percent from the previous day’s closing price of Rs. 255.10.
The company’s price-to-earnings ratio stands at 8.50, significantly lower than the industry average of 19. Additionally, Jindal Saw Limited boasts return ratios of 21.4 percent for ROCE and 17.7 percent for ROE.
In terms of financial performance, Jindal Saw Limited reported a 6.81 percent decrease in revenue from operations, dropping from Rs. 5,656 crore in Q3 FY24 to Rs. 5,571 crore in Q3 FY25. Similarly, the company’s net profit decreased by 6.89 percent, falling from Rs. 512 crore in Q2 FY24 to Rs. 479 crore in Q2 FY25.
Jindal Saw Limited is a renowned manufacturer and supplier of iron and steel pipes, fittings, and pellets, catering to industries such as oil, gas, water supply, and infrastructure on a global scale. The company operates multiple manufacturing facilities in India, the USA, Europe, and the UAE.
4. KNR Constructions Limited
KNR Constructions Limited, with a market capitalization of Rs. 8,254.24 crores, witnessed its shares close at Rs. 293.50 per equity share, reflecting a decrease of approximately 3.02 percent from the previous day’s closing price of Rs. 302.65.
The company’s price-to-earnings ratio is 7.55, significantly lower than the industry average of 22.9. KNR Constructions Limited also boasts impressive return ratios, with ROCE and ROE standing at 25.7 percent and
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.