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These 8 stocks surge over 200% in a year, but are still below 5-year average P/E

If a stock is trading below its 5-years average P/E multiple then it can be assumed that the stock is trading below its fair value

April 22, 2021 / 02:32 PM IST
In the past one year, the market has run up phenomenally. Despite the deep cuts seen in March, Sensex has gained about 50 percent in a year. Moneycontrol analysis of BSE stocks showed shares of eight companies gained over 200 percent during the same period. Despite the rally, their current trailing 12-month (TTM) price to earnings (P/E) ratios are below their 5-years average P/E multiple as well as below their respective industry P/E multiple. Price-to-earnings (P/E) is the most widely used valuation metric and plays a pivotal role in the stock screening process. If a stock is trading below its 5-years average P/E multiple then it can be assumed that the stock is trading below its fair value. We considered only the companies that posted a profit in each of the last five fiscal years and have a current market-cap of more than Rs 1,000 crore. (Data Source: ACE Equity).
In the past one year, the market has run up phenomenally. Despite the deep cuts seen in March 2020, Sensex has gained about 50 percent in a year. Moneycontrol analysis of BSE stocks showed shares of eight companies gained over 200 percent during the same period. Despite the rally, their current trailing 12-month (TTM) price to earnings (P/E) ratios are below their 5-years average P/E multiple as well as below their respective industry P/E multiple. Price-to-earnings (P/E) is the most widely used valuation metric and plays a pivotal role in the stock screening process. If a stock is trading below its 5-years average P/E multiple then it can be assumed that the stock is trading below its fair value. We considered only the companies that posted a profit in each of the last five fiscal years and have a current market-cap of more than Rs 1,000 crore. (Data Source: ACE Equity).
Eveready Industries 22042021
Eveready Industries (India) | In last 1 year, the stock has surged by 314 percent to Rs 271.65 (as on April 20, 2021) from Rs 65.55 (as on April 20, 2020). Its current TTM P/E ratio is 10.17x, while its 5-year average P/E is 25.39x. In comparison, the Industry average P/E is at 21.03x.
Manali Petro 22042021
Manali Petrochemicals Ltd. | In last 1 year, the stock has surged by  312 percent to Rs  68.90 (as on April 20, 2021) from Rs  16.71 (as on April 20, 2020). Its current TTM P/E ratio is 9.04x, while its 5-year average P/E is 9.15 x. In comparison, the Industry average P/E is at 37.93 x.
Bhansali 22042021 (1)
Bhansali Engineering Polymers Ltd. | In last 1 year, the stock has surged by  299 percent to Rs  157.80 (as on April 20, 2021) from Rs  39.50 (as on April 20, 2020). Its current TTM P/E ratio is 7.84 x, while its 5-year average P/E is 19.17 x. In comparison, the Industry average P/E is at 37.93 x.
Indo Count 22042021
Indo Count Industries Ltd. | In last 1 year, the stock has surged by  299 percent to Rs  121.35 (as on April 20, 2021) from Rs  30.45 (as on April 20, 2020). Its current TTM P/E ratio is 11.94 x, while its 5-year average P/E is 13.60 x. In comparison, the Industry average P/E is at 28.98 x.
Supreme Petrochem 22042021
Supreme Petrochem Ltd. | In last 1 year, the stock has surged by 281 percent to Rs 641.65 (as on April 20, 2021) from Rs 168.50 (as on April 20, 2020). Its current TTM P/E ratio is 22.40x, while its 5-year average P/E is 23.50x. In comparison, the Industry average P/E is at 37.93x.
Dalmia Bharat 22042021
Dalmia Bharat Sugar & Industries Ltd. | In last 1 year, the stock has surged by 244 percent to Rs 225.20 (as on April 20, 2021) from Rs 65.50 (as on April 20, 2020). Its current TTM P/E ratio is 6.50x, while its 5-year average P/E is 6.65x. In comparison, the Industry average P/E is at 6.80x.
Kirloskar Ferrous 22042021
Kirloskar Ferrous Industries Ltd. | In last 1 year, the stock has surged by 220 percent to Rs 184.05 (as on April 20, 2021) from Rs 57.60 (as on April 20, 2020). Its current TTM P/E ratio is 11.35x, while its 5-year average P/E is 15.06x. In comparison, the Industry average P/E is at 14.52x.
Jindal Stainless Hisar 22042021
Jindal Stainless (Hisar) Ltd. | In last 1 year, the stock has surged by 209 percent to Rs 148.45 (as on April 20, 2021) from Rs 48.10 (as on April 20, 2020). Its current TTM P/E ratio is 7.80x, while its 5-year average P/E is 8.63x. In comparison, the Industry average P/E is at 17.22x
Ritesh Presswala Research Analyst at Moneycontrol
first published: Apr 22, 2021 01:52 pm

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