Top 5 Low PE Ratio Stocks in India 2025

Top 5 Low PE Ratio Stocks in India 2025

List of 200 Low PE Stocks in India 2025

The price-to-earnings (PE) ratio is one of the few metrics that indicate a company’s valuation. The lower the PE, the better since it suggests the company is undervalued relative to its earnings. Investing in low PE stocks in India is the best strategy for value investors as it provides exposure to companies trading at attractive valuations.  

To make it easy for investors to identify lowest PE ratio stocks in India, our research team at Samco Securities have compiled a comprehensive table featuring 200 companies that fit the criteria in the Indian stock market. 

Company Name

P/E

CMP/BV

CMP Rs. (As of 3rd Feb 2025)

Mar Cap Rs.Cr.

Dividend Yield (%)

Shekhawati Industries Ltd.

0.62

6.89

27.37

94.34

0.00

Vipul Ltd.

0.77

0.52

15.00

211.44

0.00

Phoenix International Ltd.

0.82

0.14

6.05

10.16

0.00

Silverline Technologies Ltd.

1.04

0.12

8.15

136.80

0.00

Future Market Networks Ltd.

1.16

0.84

17.59

106.67

0.00

Flexituff Ventures International Ltd.

1.30

3.57

58.32

187.44

0.00

Starlog Enterprises Ltd.

1.40

0.13

11.50

13.02

0.00

Soma Textiles & Industries Ltd.

1.49

0.85

40.37

133.35

0.00

Ind-Swift Laboratories Ltd.

1.62

0.61

103.33

610.54

0.00

21st Century Management Services Ltd.

1.72

1.18

77.61

81.49

3.18

Ambalal Sarabhai Enterprises Ltd.

2.22

0.26

4.25

27.59

0.00

Kesar Terminals & Infrastructure Ltd.

2.25

0.28

35.45

38.73

0.00

Indian Card Clothing Company Ltd.

2.32

0.54

294.95

175.23

0.00

Nagreeka Capital & Infrastructure Ltd.

2.41

4.00

34.86

43.98

0.00

Network 18 Media & Investments Ltd.

2.46

1.65

51.36

7919.71

0.00

Narmada Gelatines Ltd.

2.67

0.33

15.60

11.18

2.90

Rama Petrochemicals Ltd.

2.71

0.27

10.00

10.40

0.00

Wim Plast Ltd.

2.84

0.39

15.38

18.46

1.92

HB Stockholdings Ltd.

3.06

0.66

101.66

72.56

1.47

Kaushalya Infrastructure Development Corporation Ltd.

3.09

0.67

979.95

33.94

0.00

VLS Finance Ltd.

3.22

0.43

285.80

972.01

0.88

Maithan Alloys Ltd.

3.27

0.75

938.20

2731.25

0.64

Sharp India Ltd.

3.36

0.28

5.20

13.49

0.00

Prakash Steelage Ltd.

3.62

16.31

7.53

131.78

0.00

Transindia Real Estate Ltd.

3.66

0.66

34.01

835.61

0.00

Madhusudan Industries Ltd.

3.68

0.19

19.00

10.21

0.00

Aster DM Healthcare Ltd.

3.81

6.84

468.60

23407.18

0.43

W.S. Industries (India) Ltd.

4.00

1.83

98.95

627.18

0.00

Sakthi Sugars Ltd.

4.00

2.23

27.82

330.64

0.00

Kinetic Engineering Ltd.

4.03

0.27

70.80

28.77

0.00

Panasonic Energy India Company Ltd.

4.10

0.23

21.25

15.94

2.21

Navneet Education Ltd.

4.17

1.60

139.38

3083.27

1.86

Satin Creditcare Network Ltd.

4.18

0.56

143.06

1580.40

0.00

Huhtamaki India Ltd.

4.19

1.42

223.96

1691.39

2.25

Elnet Technologies Ltd.

4.36

0.60

66.85

26.74

0.43

Elantas Beck India Ltd.

4.48

0.84

52.15

36.96

0.05

Hindustan Tin Works Ltd.

4.48

0.60

30.00

16.30

0.67

Lakshmi Finance & Industrial Corporation Ltd.

4.59

1.00

212.09

63.63

1.89

Shreyans Industries Ltd.

4.72

0.70

200.77

277.56

2.49

India Lease Development Ltd.

4.74

0.51

12.05

12.29

0.00

The Sandesh Ltd.

4.93

0.80

1422.10

1076.45

0.35

Zee Learn Ltd.

4.97

2.17

7.96

260.34

0.00

ADC India Communications Ltd.

4.98

0.56

47.00

21.62

2.19

Star Paper Mills Ltd.

5.05

0.43

186.13

290.52

2.16

Ashima Ltd.

5.07

1.70

27.16

520.55

0.00

ZF Steering Gear (India) Ltd.

5.09

0.88

41.00

18.60

0.63

The Karnataka Bank Ltd.

5.10

0.58

174.75

6600.91

3.15

Union Bank Of India

5.11

0.79

109.15

83320.81

3.30

The Great Eastern Shipping Company Ltd.

5.17

1.14

954.85

13632.12

3.80

The Jammu & Kashmir Bank Ltd.

5.18

0.88

100.59

11076.79

2.14

Canara Bank

5.21

0.92

90.61

82189.17

3.55

Petro Carbon And Chemicals Ltd.

5.22

1.91

174.40

430.77

0.00

The South Indian Bank Ltd.

5.30

0.68

25.27

6611.38

1.19

Atlantaa Ltd.

5.36

1.15

40.22

327.79

0.00

Hawkins Cookers Ltd.

5.43

0.80

37.10

19.62

1.40

Omax Autos Ltd.

5.48

0.66

96.47

206.33

0.00

Bank Of Baroda

5.54

0.82

207.99

107559.16

3.66

Repco Home Finance Ltd.

5.57

0.77

378.95

2370.76

0.79

Amarjothi Spinning Mills Ltd.

5.66

0.73

87.00

58.73

1.14

Prithvi Exchange (India) Ltd.

5.67

0.76

17.17

14.16

1.28

IRB Infrastructure Developers Ltd.

5.68

2.17

53.14

32091.25

0.56

Universus Photo Imagings Ltd.

5.74

0.34

196.88

215.52

0.00

TIL Ltd.

5.77

20.28

233.88

1557.69

0.00

International Conveyors Ltd.

5.89

1.43

78.65

498.48

1.40

Bombay Dyeing And Manufacturing Company Ltd.

5.89

1.26

155.33

3208.11

0.77

Bank Of India

5.89

0.70

103.92

47311.32

2.69

GIC Housing Finance Ltd.

5.93

0.52

181.20

975.78

2.48

KSE Ltd.

5.95

2.82

697.65

223.25

1.52

LIC Housing Finance Ltd.

5.95

0.88

557.60

30671.51

1.61

Tamilnad Mercantile Bank Ltd.

6.06

0.79

437.85

6933.42

2.28

Rajgor Castor Derivatives Ltd.

6.06

0.80

24.80

59.31

0.40

Ultramarine & Pigments Ltd.

6.07

0.69

69.10

25.22

1.10

GR Infraprojects Ltd.

6.08

1.53

1211.25

11717.67

0.00

Suryoday Small Finance Bank Ltd.

6.17

0.66

121.61

1292.53

0.00

DCB Bank Ltd.

6.19

0.71

117.07

3676.22

1.07

Satia Industries Ltd.

6.24

0.89

88.89

888.90

1.13

Emkay Taps And Cutting Tools Ltd.

6.33

1.52

426.50

455.13

0.00

Jana Small Finance Bank Ltd.

6.35

1.12

422.85

4441.92

0.00

K.C.P. Sugar And Industries Corporation Ltd.

6.39

1.05

40.16

455.35

0.50

Sakthi Finance Ltd.

6.49

0.79

18.90

94.50

1.48

Consolidated Finvest & Holdings Ltd.

6.53

0.68

194.46

628.62

0.00

Muthoot Microfin Ltd.

6.54

0.91

160.71

2739.98

0.00

GMR Power and Urban Infra Ltd.

6.72

3.84

100.13

7157.65

0.00

Jagran Prakashan Ltd.

6.75

1.04

75.57

1644.81

6.62

Voith Paper Fabrics India Ltd.

6.85

0.62

55.00

24.16

0.45

Indian Bank

6.87

1.15

520.40

70096.01

2.31

Shri Dinesh Mills Ltd.

6.94

0.25

195.00

10.29

7.68

Madhya Pradesh Today Media Ltd.

6.96

0.42

38.50

17.59

0.00

Utkarsh Small Finance Bank Ltd.

6.99

1.04

29.49

3248.59

1.69

Kuantum Papers Ltd.

7.03

0.87

116.05

1012.69

2.59

Glenmark Pharmaceuticals Ltd.

7.07

1.67

1414.45

39914.10

0.18

Dolat Algotech Ltd.

7.16

1.91

100.82

1774.43

0.25

PNC Infratech Ltd.

7.16

1.43

294.70

7560.21

0.20

Emami Paper Mills Ltd.

7.17

1.11

103.07

623.56

1.55

Sameera Agro & Infra Ltd.

7.20

0.84

64.80

77.18

0.00

Authum Investment & Infrastructure Ltd.

7.23

2.16

1694.75

28784.50

0.00

Ruchira Papers Ltd.

7.24

0.83

119.66

357.13

4.17

REC Ltd.

7.25

1.48

405.50

106777.23

3.94

Bank Of Maharashtra

7.27

1.46

49.56

38119.35

2.83

Veto Switchgears And Cables Ltd.

7.28

0.91

118.98

227.43

0.84

The Grob Tea Company Ltd.

7.32

1.16

1075.60

125.02

0.19

RKEC Projects Ltd.

7.36

1.11

83.25

199.72

0.00

Jindal Poly Films Ltd.

7.40

0.60

845.75

3703.24

0.65

Ujjivan Small Finance Bank Ltd.

7.46

1.23

37.48

7250.75

4.00

Punjab National Bank

7.50

0.96

98.32

112998.62

1.53

Deem Roll-Tech Ltd.

7.53

0.80

70.55

58.82

0.00

Jet Freight Logistics Ltd.

7.56

1.02

14.16

65.71

0.00

Bharat Petroleum Corporation Ltd.

7.58

1.34

249.55

108266.50

6.31

Prakash Industries Ltd.

7.64

0.84

149.46

2676.56

0.80

Shah Metacorp Ltd.

7.68

1.39

3.87

229.83

0.00

M.V.K. Agro Food Product Ltd.

7.73

0.70

35.75

55.38

0.00

Jindal Saw Ltd.

7.75

1.30

233.80

14951.70

0.86

Nath Bio-Genes (India) Ltd.

7.75

0.50

170.11

323.28

1.18

Magadh Sugar & Energy Ltd.

7.94

1.10

577.85

814.28

2.59

Ambica Agarbathies & Aroma Industries Ltd.

7.97

0.46

27.76

47.68

0.00

Dhunseri Ventures Ltd.

7.98

0.60

333.25

1167.20

1.49

Sambandam Spinning Mills Ltd.

8.02

0.68

80.00

34.12

0.00

Oil & Natural Gas Corporation Ltd.

8.03

0.93

249.00

313248.95

4.92

Mangalam Alloys Ltd.

8.07

0.69

37.50

92.57

0.00

PNB Gilts Ltd.

8.10

1.25

101.79

1832.32

0.98

Power Finance Corporation Ltd.

8.15

1.48

385.20

127119.92

3.51

True Green Bio Energy Ltd.

8.16

0.98

16.05

43.50

0.00

Coral India Finance & Housing Ltd.

8.17

0.80

46.26

186.44

0.00

Ravalgaon Sugar Farm Ltd.

8.18

0.65

480.00

16.32

0.00

Debock Industries Ltd.

8.30

0.21

2.80

45.57

0.00

Mawana Sugars Ltd.

8.34

0.90

94.50

369.65

4.24

PBA Infrastructure Ltd.

8.35

1.28

13.65

18.43

0.00

Forbes & Company Ltd.

8.46

0.44

65.10

81.07

0.00

CSL Finance Ltd.

8.49

1.20

266.95

608.18

0.93

Plada Infotech Services Ltd.

8.67

0.95

25.50

21.86

0.00

Steel City Securities Ltd.

8.68

1.32

99.81

150.78

3.01

Barflex Polyfilms Ltd.

8.75

1.45

58.10

143.79

0.00

NMDC Ltd.

8.82

1.90

62.29

54764.23

3.88

Alpine Housing Development Corporation Ltd.

8.85

0.23

7.13

12.34

0.45

Indian Metals & Ferro Alloys Ltd.

8.87

1.55

689.20

3718.52

4.35

Cheviot Company Ltd.

8.89

1.34

1184.80

692.15

0.42

Andhra Paper Ltd.

9.05

0.89

86.57

1721.45

2.31

Shipping Corporation Of India Ltd.

9.05

1.21

194.58

9063.52

0.26

Sicagen India Ltd.

9.10

0.25

24.35

96.36

0.79

Indus Towers Ltd.

9.24

2.85

350.10

92362.08

0.00

Oil India Ltd.

9.29

1.35

394.80

64218.48

2.44

Anmol India Ltd.

9.30

1.18

21.85

124.36

0.00

Manappuram Finance Ltd.

9.35

1.49

195.75

16568.96

1.69

NR Agarwal Industries Ltd.

9.37

0.72

323.85

551.16

0.00

Elpro International Ltd.

9.42

0.36

1.01

10.79

0.62

Dalmia Bharat Sugar And Industries Ltd.

9.50

0.91

341.60

2764.89

1.46

Albert David Ltd.

9.51

1.58

1142.20

651.87

1.01

CSB Bank Ltd.

9.51

1.28

304.15

5276.57

0.00

General Insurance Corporation of India

9.51

1.63

388.35

68132.12

2.57

SMC Global Securities Ltd.

9.53

1.34

123.83

1296.50

1.92

Asian Hotels (East) Ltd.

9.54

1.34

134.15

231.97

1.85

Bandhan Bank Ltd.

9.58

0.99

147.56

23771.49

1.02

Avadh Sugar & Energy Ltd.

9.63

0.78

416.75

834.27

2.40

Ahlada Engineers Ltd.

9.73

0.82

87.35

112.86

1.83

Muthoot Capital Services Ltd.

9.86

0.75

290.45

477.72

0.00

Vascon Engineers Ltd.

9.87

1.00

46.88

1060.83

0.53

Vedanta Ltd.

9.92

2.14

421.70

164901.06

7.00

Karur Vysya Bank Ltd.

9.98

1.65

233.55

18800.10

1.03

GAIL (India) Ltd.

10.02

1.54

174.34

114630.29

3.15

Electrosteel Castings Ltd.

10.08

1.37

120.69

7460.87

1.15

Hindustan Petroleum Corporation Ltd.

10.09

1.60

324.90

69132.95

6.46

Emkay Global Financial Services Ltd.

10.15

2.62

227.60

577.35

0.66

NRB Bearings Ltd.

10.17

2.70

248.90

2412.40

2.05

IIFL Capital Services Ltd.

10.18

3.48

227.25

7039.74

1.32

RBL Bank Ltd.

10.20

0.65

164.35

9989.01

0.91

West Coast Paper Mills Ltd.

10.22

1.34

533.95

3526.68

1.50

Jullundur Motor Agency (Delhi) Ltd.

10.22

1.03

90.32

206.30

2.21

Disa India Ltd.

10.22

0.46

68.05

10.28

1.32

Sam Industries Ltd.

10.35

0.35

13.25

14.69

0.00

Can Fin Homes Ltd.

10.37

1.76

648.30

8632.38

0.93

RattanIndia Enterprises Ltd.

10.40

4.86

55.08

7613.54

0.00

State Bank Of India

10.41

1.73

760.95

679118.96

1.80

KNR Constructions Ltd.

10.41

2.12

278.40

7829.57

0.09

VTM Ltd.

10.57

0.78

23.55

94.74

0.52

Prakash Pipes Ltd.

10.61

2.54

435.45

1041.52

0.41

Maharashtra Seamless Ltd.

10.62

1.36

612.90

8212.81

1.63

Pudumjee Paper Products Ltd.

10.66

2.15

128.30

1218.21

0.47

Twamev Construction And Infrastructure Ltd.

10.69

1.89

48.85

757.18

0.00

D.B. Corp Ltd.

10.69

2.08

264.55

4713.70

4.94

Ponni Sugars (Erode) Ltd.

10.73

0.51

353.30

303.78

1.98

Shriram Finance Ltd.

10.73

1.84

546.15

102692.25

1.65

GHCL Ltd.

10.76

1.93

672.05

6435.20

1.79

Panchsheel Organics Ltd.

10.78

0.84

14.50

14.54

1.69

GP Petroleums Ltd.

10.78

0.83

52.44

267.36

0.00

Capital Small Finance Bank Ltd.

10.82

1.04

300.40

1359.22

0.40

Uttam Sugar Mills Ltd.

10.87

1.23

217.77

830.53

1.15

Pasupati Acrylon Ltd.

10.92

1.13

43.58

388.44

0.00

IndusInd Bank Ltd.

10.92

1.19

1012.70

78894.56

1.63

National Aluminium Company Ltd.

10.99

2.20

189.53

34809.68

1.58

PTC India Ltd.

11.00

0.98

136.99

4055.02

5.69

TV Today Network Ltd.

11.01

1.26

185.03

1104.05

4.59

Timescan Logistics (India) Ltd.

11.02

1.77

59.80

41.79

0.00

GM Breweries Ltd.

11.08

1.96

752.65

1719.57

0.75

Libas Consumer Products Ltd.

11.08

0.72

14.37

37.86

0.00

Tata Steel Ltd.

11.08

1.14

131.82

164556.92

2.73

Khaitan (India) Ltd.

11.09

2.08

100.65

47.81

0.00

Fiberweb (India) Ltd.

11.16

0.77

44.61

128.44

0.00

Venus Remedies Ltd.

11.20

0.73

288.35

385.44

0.00

Jaiprakash Power Ventures Ltd.

11.22

1.22

14.86

10184.24

0.00

The Federal Bank Ltd.

11.29

1.37

180.56

44328.41

0.66

Top 5 Low PE Ratio Stocks in India 2025

Company Name

P/E

CMP/BV

CMP Rs.

Mar Cap Rs.Cr.

Dividend Yield (%)

Shekhawati Industries Ltd.

0.62

6.89

27.37

94.34

0.00

Vipul Ltd.

0.77

0.52

15.00

211.44

0.00

Phoenix International Ltd.

0.82

0.14

6.05

10.16

0.00

Silverline Technologies Ltd.

1.04

0.12

8.15

136.80

0.00

Future Market Networks Ltd.

1.16

0.84

17.59

106.67

0.00

  • Shekhawati Industries Ltd.

Shekhawati Industries Ltd. operates in the textile sector, specializing in manufacturing polyester yarn and related products. With a PE ratio of just 0.62 as of February 3, 2025, it is among the lowest PE ratio stocks in India, making it an attractive buy for value investors.

The stock’s CMP/BV ratio of 6.89 indicates that it is trading at a premium to its book value. Despite having no dividend yield, the company’s strong foothold in the domestic market and expanding export operations make it one of the best PE ratio stocks in India for the long term.

  • Vipul Ltd.

Vipul Ltd. is a real estate company engaged in residential and commercial property development. With a PE ratio of 0.77 as of February 3, 2025, it stands out as one of the lowest PE ratio stocks in India with good upside potential. 

The company’s CMP/BV ratio is just 0.52, which essentially means that the share price is currently undervalued compared to its book value. This makes Vipul Ltd. an attractive proposition to value investors seeking the best PE ratio stocks in India.

  • Phoenix International Ltd.

Phoenix International Ltd. is a manufacturing and trading company with diversified operations that includes producing and supplying shoe uppers and renting out immovable properties. The company has maintained a PE ratio of 0.82 as of February 3, 2025, placing it among the low PE stocks in India.

Trading at a CMP/BV ratio of just 0.14, Phoenix International Ltd. is significantly undervalued relative to its book value. The current market price of Rs. 6.05 as of February 3, 2025 and a market capitalization of Rs. 10.16 crore make it an ideal pick for risk tolerant investors interested in investing in the best PE ratio stocks in India. 

  • Silverline Technologies Ltd.

Silverline Technologies Ltd. is an IT solutions provider focusing on software development and consulting. The company’s expertise in digital transformation and enterprise solutions puts it in a strong position for future growth. Its PE ratio of 1.04 as of February 3, 2025 indicates that it is trading at one of the most attractive valuations in the low PE stocks in India category.

Silverline’s CMP/BV ratio is just 0.12, which suggests that the stock is highly undervalued. Although it does not provide dividends, investors looking for the lowest PE ratios stocks in India can keep an eye on the company’s earnings trajectory.

  • Future Market Networks Ltd.

Future Market Networks Ltd. is involved in developing retail infrastructure, trade infrastructure and infra-logistics. The company’s PE ratio of 1.16 as of Februray 2, 2025 places it among the best PE ratio stocks in India. 

The stock’s CMP/BV ratio of 0.84 suggests that it is trading below its book value, making it a strong candidate for growth as the retail sector expands. Investors seeking low PE stocks in India may find Future Market Networks to be a valuable addition to their portfolios.

Understanding Low PE Ratio Stocks

A low price-to-earnings or PE ratio often suggests that a stock is undervalued compared to its earnings potential. However, it may not always be a guaranteed bargain. Investors looking at low PE stocks in India must assess whether the low valuation stems from temporary market sentiment or deeper structural issues. 

Some companies trade at a discount due to cyclical downturns, regulatory changes or declining growth prospects. Understanding the reasons behind a low PE ratio is crucial for distinguishing value opportunities from potential traps. If you are analysing the lowest PE ratio stocks in India, it is also essential to compare them within their sector rather than using absolute numbers. 

A low PE ratio in one industry may be normal, while in another, it could indicate financial distress. Additionally, factors like earnings stability, future growth potential, and debt levels should be considered before making investment decisions. 

Strategies For Identifying Low PE Ratio Stocks

To identify suitable low PE stocks in India, you need to have the right strategy in place. Here are some actionable techniques that you can use to find the right stocks in this category 

  • Compare Within the Same Industry

A low PE ratio can be misleading if you do not evaluate it contextually. You should compare low PE stocks in India within the same sector to determine whether the valuation is genuinely attractive or if the company is underpriced due to weak financials or industry downturns.

  • Analyse Earnings Stability

A stock with a low PE ratio might seem cheap, but declining earnings can make it a risky bet. When assessing the lowest PE ratio stocks in India, you should check the revenue trends, profit margins and future earnings growth to ensure those companies are not in financial distress.

  • Look for High Dividend Yield

Some low PE high dividend stocks in India offer both value and steady income. Stocks with strong cash flows and a history of consistent dividend payouts can be attractive investments. However, you must verify if the dividend payments are sustainable over the long term.

  • Check Institutional Interest

Institutional investors conduct extensive research before investing. If the best PE ratio stocks in India are being accumulated by mutual funds or foreign institutional investors, it may indicate strong fundamentals in those firms. You can use these trends to avoid value traps.

Comparing PE Ratios Across Industries

PE ratios vary significantly across industries. This makes direct comparisons quite misleading. For example, fast-growing tech firms tend to have higher PE ratios, while established utility companies often trade at lower valuations. A seemingly low PE in one sector may be standard, while in another, it could signal weak future growth. So, investors analysing low PE stocks in India should consider sector-specific norms before assuming a stock is undervalued. 

When evaluating the lowest PE ratio stocks in India, it is also important to assess industry trends and economic cycles. Stocks in sectors like banking and infrastructure typically have lower PE ratios due to stable but slower growth. On the other hand, high-growth industries like pharmaceuticals or IT often justify higher valuations. By understanding such industry dynamics, you can avoid mistaking structurally low PE ratios for undervalued opportunities.

If you are looking at low PE high dividend stocks in India, you should also verify whether the industry you want to invest in supports high dividend payouts. Companies in sectors like energy, telecom and FMCG often distribute significant earnings as dividends. This may keep the PE ratios low. However, in industries that reinvest heavily in growth, a low PE combined with high dividends could indicate limited expansion potential. 

Conclusion 

The bottom line is that investing in the lowest PE ratio stocks in India can pay off if you find the right firms. However, finding stocks that appear promising in this regard can be challenging. With the right trading and investment tools, this becomes easier. In addition to this, you also need a reliable brokerage partner like Samco Securities. 

To make your investment journey seamless and more well-informed, open a demat and trading account with Samco Securities today. You can then download the Samco trading app and access all of its advanced trading features free of charge. 

FAQs

  • What is a low PE stock?

A low PE stock is one that trades at a lower price relative to its earnings. This may potentially indicate that the stock is undervalued or is facing market or sector challenges.

  • Are low PE stocks always undervalued?

No. A low PE ratio can indicate undervaluation, but it can also signal financial trouble, slowing growth or declining market confidence. This is why you must always assess other financial indicators and industry performance.

  • Can low PE stocks provide good returns?

Yes. Low PE stocks may provide high returns if their undervaluation is temporary and driven by market sentiment. However, it is advisable to avoid stocks of companies with declining fundamentals or weak business prospects.

  • How do market cycles affect low PE stocks?

In a downturn, PE ratios may fall across industries, thus creating buying opportunities. Conversely, in bullish markets, low PE stocks may appear unattractive compared to high-growth investments.

  • What risks are involved in investing in low PE stocks?

The risks of investing in low PE stocks in India include potential financial distress, weak earnings growth and value traps. Some stocks may have low PE due to fundamental problems that could worsen over time and cause further price drops.

  • Are low PE stocks in Nifty 50 a safe investment?

While low PE stocks in Nifty 50 may offer stability due to strong fundamentals, you should still evaluate the reasons for their low PE. Also look into the company’s future prospects and assess sector-specific challenges.

Tagged:
Samco Fast Trading App

Download App to get free trading ideas

Get the link to download the app.

Samco App QR Code
Samco Google Play Store Samco App Store

About The Author

The author has over 9 years+ experience in media, traditional and digital marketing. Chirag currently leads the Marketing function at Samco Group and overlook all marketing and communications for the Samco Group.

Leave A Comment?