A stock trading at a lower PE ratio than its 3-year average may indicate undervaluation compared to its historical levels, suggesting potential for future price growth if fundamentals remain strong. However, it’s essential to assess earnings growth and market conditions to avoid overlooking potential risks.
Listed below are 4 stocks with P/E below their three-year average.
With a market capitalization of Rs 2,10,904.56 crore, the shares of Nestle India Limited were trading at Rs 2187.45 apiece, marking a slight decrease from the previous closing price. The company is trading at a P/E of 67.28 as compared to a three-year P/E of 78.8.
Nestlé India Limited is one of the biggest FMCG companies in India offering beverages, prepared dishes, milk products, and confectionery. Its portfolio includes instant coffee, noodles, dairy items, chocolates and sauces. Popular brands are Nescafe, Maggi, Milkybar, Kit Kat and Milkmaid.
With a market capitalization of Rs 55,476.00 crore, the shares were trading at Rs 693.55 apiece, marking a slight decrease from the previous closing price. The company is trading at a P/E of 44.9 as compared to a three-year P/E of 62.1.
IRCTC is an Indian monopoly stock that offers online railway ticketing, catering services, and packaged drinking water at railway stations across India. The company runs Rail Neer plants, mobile catering, and food outlets at stations. It also provides rail tour packages with travel, lodging, sightseeing, and insurance.
With a market capitalization of Rs 22,428.28 crore, the shares were trading at Rs 50.73 apiece, marking a slight decrease from the previous closing price. The company is trading at a P/E of 35.5 as compared to a three-year P/E of 51.9.
Motherson Sumi Wiring India Ltd. provides wiring harness solutions for OEMs in India. It offers end-to-end services from design and validation to manufacturing and assembly. The company produces electrical distribution systems for power and data transfer in vehicles.
TCS
With a market capitalization of Rs 12,67,596.96 crore, the shares were trading at Rs 3,503 apiece, marking a slight decrease from the previous closing price. The company is trading at a P/E of 26 as compared to a three-year P/E of 30.4.
Tata Consultancy Services (TCS), the flagship company of the Tata Group, is a leading IT services, consulting, and business solutions provider. For over 50 years, TCS has collaborated with some of the world’s largest businesses. The company offers an AI-powered and consulting-driven portfolio of technology, business, and engineering services and solutions.