Nowadays, in this race of inflation, everyone wants to earn money, and the stock market is such a place where we can make good returns. There are fluctuations in the stock market, due to which we have found some stocks for you that can give good returns in the coming time. Here are the top 5 low valuation stocks for Long-Term Investment Top 5 low valuation stocks for Long Term Investment.
Low valuation Stocks
Investing in low valuation stocks can be a smart strategy for investors seeking high potential returns. These stocks typically trade at low price-to-earnings (P/E) and price-to-book (P/B) ratios compared to their peers, indicating they may be undervalued. We have found some such stocks for you and have analyzed them thoroughly. Here are the top 5 low valuation stocks for Long term investment.
1. AARTI PHARMA
This company is associated with the pharma sector. It is a leading company in India. They specialize in making active pharmaceutical ingredients (API), pharmaceutical intermediates. Their focus is on developing generic APIs, new chemical entities (NCEs), and xanthine derivatives. They also provide contract development and manufacturing organization (CDMO) services. They have six manufacturing plants and two R&D centers. This company is known for its high-quality standards. They are committed to sustainable and innovative positioning. As a major player in the pharmaceutical industry, they aim to fulfill global customers. We can see the stock as an opportunity because the valuation of the stock is also very attractive and it has strong fundamentals. The company’s business also looks sustainable for the long term.
The company has had a solid past performance, and the share price growth has also increased significantly. Talking about the last year, the growth rate is more than 60.05%, and in the last 3 years, it is more than 62.51 percent. The company’s revenue is also increasing consistently. Along with this, their net sales have been ₹414.82 crores till March 2024, and it is believed that good growth will be seen year after year. Talking about fundamentals, their current stock price is 647, and market capitalization is ₹5,866 crores. Stock PE is 27.1, the company also pays a dividend of 0.49%, and their promoter holding also remains the same at 49.46
FUNDAMENTAL
Market Cap. ₹5,866cr
Current price ₹647
PE ratio. 27.1
Debt to equity 0.16
Dividend yield 0.49%
Promoter holding. 46.46%
2. PCBL
Pcbl Limited, Phillips Carbon Black Limited, is a large carbon-producing company in India that belongs to the finance sector. The company manufactures products such as tires and rubber. There are 5 manufacturing plants located throughout India, making it the largest producer of carbon black in the country. The production capacity is 666,000 MT per year. Additionally, it is involved in power generation and has diversified interests in retail and FMCG. The company serves customers in around 30 countries, with a strong presence in both domestic and international markets. It has the ability to cater to diverse clients across various countries. The stock of this company is currently trading at an affordable valuation, meaning it is trading below the intrinsic value, making it worth keeping an eye on.
The company has a market capitalization of ₹ 14,241cr and stocks price is ₹ 377, the stock is trading above its 200 moving average and it also pays a dividend of 1.46% and its promoter holding is stable with 51.41%
FUNDAMENTAL
Market Cap ₹14,241cr
Current price ₹377
PE ratio. 29.0
Debt to equity 1.53
Dividend yield 1.46%
Promoter holding. 51.41%
3. IIFL FINANCE
This company belongs to the finance sector. And it is a major Indian financial service that offers a wide range of financial products.
This company gives loan, home loan, gold loan, business loan and catering to both individuals and businesses. It has about 26 branches in India and it focuses on retail and corporate lines and also engages in wealth management, asset management, investment banking, to make it a comprehensive financial service provider in the market.
This company has also shown strong past performance
Earning growth averaging 26.4% annual over the past 5 years
The performance of last year is 28%. And it generated revenue of 22.2%. The stock has given a return of 51.47% in the last 3 years and a return of 25.13% in the last one year
FUNDAMENTAL
Market Cap. ₹19,001cr
Current price. ₹449
PE ratio. 10.8
Debt to equity. 4.43
Dividend yield. 0.89%
Promoter holding. 24.9%
4. INDIAN OIL CORPORATION
Indian Oil Corporation Limited (IOCL) is the largest state-owned oil and gas company in India. It operates across the entire hydrocarbon value chain, which includes refining, pipeline transportation, marketing, exploration, and petrochemicals. The stock of this company is still trading below its intrinsic value, creating a buying opportunity for investors. If we talk about the valuation of the stock, that is also quite good. Their P/E ratio is 8.24. The company offers a dividend yield of 6.77%, which means investors will benefit whenever there is growth in the stock. The current market price of the stock is 177 rupees consistently, and the stock is trading above the 200-day moving average.
IOCL is currently executing over 2800 projects worth 2.05 lakh crores as part of the New Bharat campaign to boost domestic manufacturing and create jobs.
FUNDAMENTAL
Market Cap. ₹2,50,200cr
Current price. ₹177
PE ratio. 8.12
Debt to equity. 0.72
Dividend yield. 6.77%
Promoter holding. 51.50%
5. NARAYANA HRUDAYALAYA Ltd
This company is related to hospitals and healthcare centers, and it is fundamentally a very strong company. It primarily focuses on providing affordable and high-quality healthcare services. The company has a total of 18 operational hospitals, three heart centers, and 17 dialysis centers.
Narayana Hrudayalaya has an aggressive capital expenditure (capex) plan for the next 2-3 years, with a guided capacity of ₹10 billion annually in FY23 and FY24. The company’s capex will be focused on core and high-performing regions such as Bangalore, Kolkata, and the Cayman Islands to enhance growth visibility. As of early August 2024, the share price was around ₹1227.2, with a 52-week high of 144.90 and a low of ₹973.40. The stocks increased by approximately 22% over the last year. The company’s market capitalization is around ₹25,902.73 crores, and the company’s return on equity is 33.55. Its current stock price is 1231. If seen on the chart, it is currently tracking above the 200-day moving average ratio of 32.73, indicating solid growth despite recent fluctuations in share price performance. So, due to all these reasons, we can think about this stock.
FUNDAMENTAL
Market Cap. ₹25,144cr
Current price. ₹1,231
PE ratio. 31.9
Debt to equity. 0.56%
Dividend yield. 0.32%
Promoter holding. 63.85%
These are the top 5 low valuation stocks for long-term investment that we have talked about in this article, so you can keep them on your radar.
Disclaimer; The information provided in this note is for general educational purposes only and should not be considered as a recommendation to buy or sell any stocks. Investors should conduct their own research and consult with financial advisors before making any investment decisions.