Stocks with PEG Ratio Below 1 Trading at Significant Discounts: Top Picks to Watch

Several stocks with a PEG ratio below 1 are currently trading at significant discounts, presenting potential investment opportunities. Waaree Renewables Ltd, specializing in solar energy, is trading at Rs 808.25, down 73% from its 52-week high, with a PEG ratio of 0.06. Zen Technologies Ltd, a defense training systems company, is priced at Rs 1,213.75, offering a 54% discount and a PEG of 0.68. Adani Energy Solutions Ltd, which provides energy solutions in transmission and trading, is trading at Rs 782.70, down 42% from its peak, with a PEG of 0.61.

Lastly, GE Vernova T&D India Ltd, which focuses on power transmission and distribution, is priced at Rs 1,428, marking a 36% discount and a PEG ratio of 0.2. These companies show robust financial growth but are trading below their 52-week highs, suggesting they could be undervalued.

Stocks with PEG Ratio Below 1 Trading at Significant Discounts: Top Picks to Watch

The PEG (Price-to-Earnings Growth) ratio is a useful tool to determine whether a stock is fairly priced based on its earnings growth. A PEG ratio below 1 often suggests that a stock might be undervalued, meaning it could be a good buy. Here, we look at four stocks with PEG ratios under 1 that are currently trading at significant discounts compared to their 52-week high prices. These stocks might offer good investment opportunities, but it’s always wise to consult a financial advisor before making any decisions.

1. Waaree Renewables Ltd

• Market Cap: Rs 8,426 crore
• Current Price: Rs 808.25
• 52-Week High: Rs 3,037.75 (73% discount)
• PEG Ratio: 0.06

Waaree Renewables is a company that focuses on solar energy projects. It has some major clients, including Reliance and Adani. Despite its strong market position, the stock is currently trading at a massive 73% discount from its 52-week high.

In the third quarter of FY25, the company saw an 11% increase in revenue, but its net profit dropped by 16%. Even with this dip in profit, the extremely low PEG ratio of 0.06 suggests that the stock might be undervalued, especially considering its growth potential in the renewable energy sector.

2. ZEN Technologies Ltd

• Market Cap: Rs 10,959 crore
• Current Price: Rs 1,213.75
• 52-Week High: Rs 2,627.95 (54% discount)
• PEG Ratio: 0.68

ZEN Technologies specializes in defense training systems. With over 160 patents, the company demonstrates a strong focus on innovation. The stock is currently trading at a 54% discount from its 52-week high.

In terms of financial performance, the company reported a 52% increase in revenue and a 43% growth in net profit. With a PEG ratio of 0.68, the stock appears to be undervalued, especially given its strong growth in both revenue and profit.

3. Adani Energy Solutions Ltd

• Market Cap: Rs 94,024 crore
• Current Price: Rs 782.70
• 52-Week High: Rs 1,347.90 (42% discount)
• PEG Ratio: 0.61

Adani Energy Solutions, part of the Adani Group, provides energy solutions through power transmission and trading. The stock is currently trading at a 42% discount from its 52-week high.

The company’s financials are strong, with a 28% increase in revenue and an impressive 80% surge in net profit. With a PEG ratio of 0.61, the stock seems undervalued, making it a potential opportunity for investors looking at the energy sector.

4. GE Vernova T&D India Ltd

• Market Cap: Rs 36,563 crore
• Current Price: Rs 1,428
• 52-Week High: Rs 2,215.70 (36% discount)
• PEG Ratio: 0.2

GE Vernova provides power transmission and distribution solutions. The stock is currently trading at a 36% discount from its 52-week high.

The company’s financial performance has been impressive, with a 28% increase in revenue and a massive 192% jump in net profit. With a PEG ratio of 0.2, the stock appears to be significantly undervalued, making it an attractive option for investors.

Why These Stocks Might Be Worth Considering

All four stocks have PEG ratios below 1, indicating they might be undervalued based on their earnings growth. Additionally, they are trading at significant discounts compared to their 52-week highs. This combination of low PEG ratios and large price discounts could make them attractive investment opportunities.

However, it’s important to remember that investing in stocks always carries risks. While these companies show strong potential, their current discounts might also reflect market concerns or challenges. For example, Waaree Renewables saw a drop in net profit despite revenue growth, which could be a red flag for some investors.

Before making any investment decisions, it’s crucial to do thorough research and consult with a financial advisor. They can help you understand the risks and rewards associated with these stocks and guide you in making informed choices.

Final Thoughts

Stocks with low PEG ratios and large discounts can be tempting for investors looking for undervalued opportunities. Waaree Renewables, ZEN Technologies, Adani Energy Solutions, and GE Vernova are all examples of such stocks. While they show potential, always approach investing with caution and seek professional advice to ensure your decisions align with your financial goals.