Low PE stocks below Rs 200
Low PE stocks below Rs 200: Indian markets are having their best time of the year with both Nifty and Sensex hitting record highs in January. With the market trading at such high valuations, it’s a really difficult time for value investors to enter the sector and bet on their favorite stocks.
With this in mind, we set out to find hidden gems with great fundamentals and growth potential. We also made sure that the price-to-earnings (PE) of these gems was the lowest possible. If you’re wondering what PE is, it’s simply the price multiple that investors are willing to pay for those earnings per share.
We also wanted to help investors find value in these companies, even if it’s just a small amount. Therefore, we found stocks with low P/E ratios that were also trading at cheap prices of just Rs. 200.
Low PE Stocks Under Rs 200 – List of Stocks
Now let’s take a closer look at these low P/E stocks. Most of the stocks may be familiar to you because they are from well-known companies. Let’s take a closer look at what the company does and see how its revenue and profits have grown over the past year.
#1 Low PE Stock Under Rs 200 – Indian Oil Corporation
Indian Oil Corporation Maharatna Company is the country’s largest oil refiner and second largest.nd It is the largest company in the petrochemical field. IOCL has 11 refineries with a total capacity of 80.6 million metric tonnes per annum (MMTPA), covering 32% of India’s refining needs. The company also owns one of the largest crude oil pipelines with a length of 17,000 km and a capacity of 119.2 MMTPA.
In FY23, Indian Oil’s refineries recorded an operation rate of 103%, recording a throughput of over 72 MMT. With a vision for research and development, IOCL collaborates with several companies such as Ashok Leyland, BARC, L&T and SAIL. As of FY23, the company had filed more than 1,554 patents for products such as lubricants, catalysts, additives, polymers, hydrogen, biofuels, and other petrochemical products.
The company’s current projects include expansion of Panipat refinery from 15 MMTPA to 25 MMTPA for Rs. 34,627 Cr. Expansion of Gujarat Refinery from 13.7 MMPTA to 18 MMTPA for Rs. 18,936 Cr. The ongoing IOCL project is worth approximately Rs. 1.1 Lakh Crore, Capex for FY24 is approximately Rs. 26,327 Cr.
During the year, IOCL operating revenue grew by 19% from Rs. 7.36 Lakh Cr in FY22 to Rs. 9.51 Lakh Cr in FY23. However, due to the sharp rise in crude oil prices, IOCL’s profit fell by 55% from Rs. 25,726 Cr in FY22 to Rs. 11,704 Cr in FY23. The company’s current PER is only 4.32x, which is lower than the industry’s PER of 9.83x.
#2 Low PE Stocks Under Rs 200 – Satia Industries Limited
Satia Industries Limited (SIL) is one of India’s largest paper manufacturers using wood and agro-based raw materials such as wood chips, veneer waste, straw and sarkanda. The company started its operations in 1984 as M/s. Founded by Dr. Ajay Satia, Satia Paper Mills Ltd. later changed its name to Satia Industries Ltd.
The company has a fully integrated manufacturing facility comprising four paper machines and a pulping machine. We also have a chemical recovery plant and a power generation plant that meet 100% of our power requirements. This form of backward integration offers outstanding advantages in terms of cost efficiency and environmental compliance, ultimately leading to good margins.
SIL also has a 540-acre eucalyptus plantation developed under Karnal Technology, which will consume the total treated effluent and meet all future wood raw material requirements. The company’s product mix includes color paper, ledger paper, cartridge paper, copy paper, bond paper with and without watermark in the GSM range from 42 to 200 GSM.
Satia Industries Ltd. also has facilities for making Chromo Paper. SIL has a strong Pan India distribution network of over 70 dealers. During the year, the company recorded total sales of KRW 500 billion. 1884 Cr in FY23, an increase of 111% from Rs. 891 Cr in FY22.
Net profit increased 91% from 10 billion won. 100 Cr in FY22 to Rs. 192 Cr in FY 2023. The company’s current PER is only 5.58x, which is lower than the industry’s PER of 7.49x.
#3 Low PE Stocks Under Rs 200 – Kuantum Papers
Quantum thesis It is another environmentally conscious organization dedicated to manufacturing and supplying premium quality paper made from agricultural and wood materials. It was founded in 1980 in Saila Khurd village, located in Punjab, India. The Kuantum plant was established to exploit the untapped potential of agricultural plants such as Sarkanda Grass, Kahi Grass and agricultural residues such as wheat straw and Bagasse.
Traditionally, these residues were burned on site, but have now been repurposed to manufacture premium quality paper. The company has a fully integrated manufacturing facility spread over 259 acres and is located at the foothills of the Shivalik Range. In 2008, Kuantum expanded into a wood-based pulp mill that exclusively utilizes wood waste from the furniture industry.
Kuantum has evolved from an initial production of 30 tonnes per day (TPD) to an impressive 450 TPD, producing over 150,000 MT of paper per year. The company has also added a new chemical recovery plant, increasing total recovery capacity to 700 TPD, ensuring efficient resource utilization.
In recent years, Kuantum has expanded its global presence, serving customers in more than 30 countries, making it a trusted name in the international market. Prominent clients include famous brands such as Walmart, McGraw Hill, Kokuyo, Thomson, Lotus Global, Pearson, Oxford University Press, Macmillan, etc.
For the year, Kuantum reported total revenue of Rs. 1310 Cr in FY23, up 58% from Rs. 830 Cr in FY22. The company’s net profit surged by 840% from Rs. 13 Cr in FY22 to Rs. FY23 has 136Cr. The bumper profit was driven by a significant reduction in material costs. The company’s current PER is only 6.77x, which is lower than the industry’s PER of 7.49x.
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#4 Low PE Stocks Under Rs 200 – South Indian Bank
South Indian Bank (SIB) It is a private sector bank headquartered in Thrissur, Kerala. It was the first private sector bank in Kerala to become a Scheduled Bank under the RBI Act, 1946. In addition, in June 1993, it opened an ‘overseas branch’ exclusively dedicated to import and export business, becoming the first private bank in Kerala to do so.
As on March 31, 2023, the bank had a network of 942 banking branches (941 branches and 1 service branch), 1,175 ATMs and 134 CRMs spread across 26 states and 4 union territories. In 23, bank deposits increased from 1,000 won to 1,000 won. 89,142 Cr in FY22 to Rs. 91,651 Cr in FY23, an increase of just 3%. The advance payment has increased from Rs. 59,993 Cr to Rs. 69,804 Cr, growth of 16%.
Net interest income increased by 34% from Rs. 2240 Cr in FY22 to Rs. FY23 has 3012 Cr. This year’s net profit has increased 139 times from Rs. 49 Cr in FY22 to Rs. 737 Cr in 2023.
Profits increased significantly due to an increase in net interest margin and a reduction in provisions and contingencies. Net interest margin increased from 2.62% to 3.3% during the period. The bank’s current PER is only 5.78x, which is lower than the industry’s PER of 12.2x.
#5 Low PE Stocks Under Rs 200 – Union Bank of India
union bank of india It is one of the leading public sector banks in the country with the government holding 76.99% of the bank’s total paid-up capital. The Mumbai-based bank was founded in 1919.last name In April 2020, Andhra Bank & Corporation Bank was merged into Union Bank as part of the government’s objective to consolidate India’s public sector banking network.
Currently, the bank has a network of over 8450 domestic branches, over 9800 ATMs, over 76,300 employees and over 18,900 BC points. We also have two overseas branches in Dubai International Financial Center (UAE) and Sydney (Australia). There is one banking subsidiary in London (United Kingdom). one Malaysian bank joint venture; 4 parabanking subsidiaries (domestic); Two joint ventures and one associate – Chaitanya Godavari Gramin Bank.
Union Bank of India is the first large public sector bank in India to implement 100% core banking solutions. It is a system where banks provide a full suite of end-to-end services, from accepting deposits, loans, payments and all other regulatory compliance.
UBI’s net interest margin increased by 18% from Rs. 28,051 Cr in FY22 at Rs. 33,130 Cr in FY23. Net profit increased by 62% from Rs. 5265 Cr in FY22 to Rs. 8,511 Cr in FY23. This is due to higher profits and higher provisions compared to the previous year. The bank’s current PER is only 7.9 times, which is lower than the industry’s PER of 9.47 times.
List of 10 other low P/E stocks under Rs 200
The list below includes other 10 low PE stocks under Rs 200.
conclusion
In conclusion, we believe the paper industry is very undervalued, with almost all stocks trading at a price-to-earnings ratio of less than 10. Some of the reasons could be rising input costs along with market perception that the paper industry is not growing due to digitalization. Nonetheless, the industry has reported very strong results, with every company doubling their profits.
Our list also features two banks that lost the market due to high non-performing assets. These banks were able to perform better as their non-performing provisioning ratios decreased.
This is our story on this topic. We’d love to hear what you think of these companies. According to you, do they have potential? Is the market valuing them correctly? Let us know in the comments below.
Written by Nasir Hussein
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