Several mid-cap companies have a combination of a PEG ratio below 1 and a debt-to-equity ratio below 1, two metrics often used to identify companies with growth potential and relatively low leverage.
The six stocks identified under these parameters are Dixon Technologies (India), Glenmark Pharmaceuticals, National Aluminium Company (NALCO), Premier Energies, Godfrey Phillips India, and Welspun Corp.
Stocks and key metrics
- Dixon Technologies (India) Ltd
- Market capitalisation: Rs 69,883 crore
- PEG ratio: 0.63
- ROCE: 42.0%
- ROE: 37.4%
- Debt-to-equity ratio: 0.21
- Glenmark Pharmaceuticals Ltd
- Market capitalisation: Rs 61,101 crore
- PEG ratio: 0.27
- ROCE: 39.8%
- ROE: 30.5%
- Debt-to-equity ratio: 0.06
- National Aluminium Company Ltd (NALCO)
- Market capitalisation: Rs 72,666 crore
- PEG ratio: 0.21
- ROCE: 39.6%
- ROE: 29.4%
- Debt-to-equity ratio: 0.00
- Premier Energies Ltd
- Market capitalisation: Rs 48,999 crore
- PEG ratio: 0.09
- ROCE: 33.3%
- ROE: 42.4%
- Debt-to-equity ratio: 0.86
- Godfrey Phillips India Ltd
- Market capitalisation: Rs 34,645 crore
- PEG ratio: 0.61
- ROCE: 32.8%
- ROE: 26.6%
- Debt-to-equity ratio: 0.04
- Welspun Corp Ltd
- Market capitalisation: Rs 36,540 crore
- PEG ratio: 0.19
- ROCE: 22.9%
- ROE: 19.4%
- Debt-to-equity ratio: 0.26
Businesses they operate in
These companies are spread across different sectors.
- Dixon Technologies is an electronics manufacturing services company. It makes products such as mobile phones, televisions, lighting products and home appliances for domestic and global brands.
- Glenmark Pharmaceuticals develops and markets branded and generic medicines. It has operations across the US, Europe and emerging markets.
- NALCO is a state-run aluminium producer. Its operations cover the entire value chain, from bauxite mining to aluminium production.
- Premier Energies manufactures solar cells and modules and supplies products for utility-scale, commercial and residential projects.
- Godfrey Phillips India manufactures cigarettes and tobacco products. Its brands include Four Square and Red & White.
- Welspun Corp produces large-diameter pipes used in oil, gas, water and infrastructure projects. The company has manufacturing facilities in India and overseas.
Among the six stocks, Premier Energies had the lowest PEG ratio at 0.09, while NALCO reported a debt-to-equity ratio of zero.
TL;DR
Six mid-cap companies, including Dixon Technologies and NALCO, have PEG ratios below 1 and debt-to-equity ratios below 1. Premier Energies has the lowest PEG ratio, while NALCO has no debt on its books.
AI Summary
- Six mid-cap stocks meet both screening parameters.
- Premier Energies has the lowest PEG ratio at 0.09.
- NALCO reported a debt-to-equity ratio of 0.00.
- Dixon Technologies posted ROCE of 42%.
- The companies operate across electronics, pharma, metals, renewables and infrastructure.
