Several stocks across sectors such as jewellery retail, auto components, pharmaceuticals, electrical equipment and power engineering have delivered multibagger returns over the past year.
Despite the sharp rise in their share prices, these companies continue to have PEG ratios below 1, indicating that earnings growth remains strong relative to valuations.
Here are five such stocks.
1. Thangamayil Jewellery Ltd
Thangamayil Jewellery Ltd is a jewellery retailer with a strong presence in South India, particularly Tamil Nadu.
The company sells:
- Gold jewellery.
- Diamond jewellery.
- Silver products.
- Platinum jewellery.
Its focus on tier-2 and tier-3 markets has helped support growth.
Key metrics
- Market capitalisation: ₹16,939 crore
- Share price: ₹5,454
- One-year return: 184%
- PEG ratio: 0.74
A PEG ratio below 1 suggests that earnings growth has outpaced valuation expansion.
2. Wheels India Ltd
Wheels India Ltd manufactures steel wheels and precision-engineered components.
Its products cater to:
- Commercial vehicles.
- Passenger vehicles.
- Tractors.
- Construction equipment.
The company also has a growing export business.
Key metrics
- Market capitalisation: ₹3,787 crore
- Share price: ₹1,553
- One-year return: 103%
- PEG ratio: 0.59
3. Venus Remedies Ltd
Venus Remedies Ltd operates in the pharmaceutical sector and focuses on:
- Critical care medicines.
- Oncology products.
- Antibiotics.
- Injectable formulations.
The company exports its products to multiple international markets.
Key metrics
- Market capitalisation: ₹2,330 crore
- Share price: ₹1,744
- One-year return: 297%
- PEG ratio: 0.41
4. V-Marc India Ltd
V-Marc India Ltd manufactures electrical wires and cables used across residential, commercial and industrial applications.
Its portfolio includes:
- House wires.
- Power cables.
- Flexible cables.
- Industrial cables.
Key metrics
- Market capitalisation: ₹3,916 crore
- Share price: ₹1,604
- One-year return: 456%
- PEG ratio: 0.35
Among the five stocks, V-Marc India delivered the highest return over the last year.
5. GE Power India Ltd
GE Power India Ltd provides engineering and equipment solutions for the power generation sector.
Its operations include:
- Manufacturing power plant equipment.
- Installation services.
- Maintenance services.
- Engineering solutions.
Key metrics
- Market capitalisation: ₹7,076 crore
- Share price: ₹1,052
- One-year return: 188%
- PEG ratio: 0.47
Comparison at a glance
| Company | Market Cap | Share Price | One-Year Return | PEG Ratio |
|---|---|---|---|---|
| Thangamayil Jewellery | ₹16,939 crore | ₹5,454 | 184% | 0.74 |
| Wheels India | ₹3,787 crore | ₹1,553 | 103% | 0.59 |
| Venus Remedies | ₹2,330 crore | ₹1,744 | 297% | 0.41 |
| V-Marc India | ₹3,916 crore | ₹1,604 | 456% | 0.35 |
| GE Power India | ₹7,076 crore | ₹1,052 | 188% | 0.47 |
What does a PEG ratio below 1 indicate?
The PEG ratio compares a company’s valuation with its earnings growth.
A PEG ratio below 1 is often viewed as a sign that:
- Earnings growth is strong relative to valuation.
- The stock may not be fully priced for its growth prospects.
- Investors are paying less for each unit of growth.
However, PEG ratios are only one valuation measure and should be considered alongside other financial and business factors.
TL;DR
Thangamayil Jewellery, Wheels India, Venus Remedies, V-Marc India and GE Power India have delivered multibagger returns over the past year while maintaining PEG ratios below 1, reflecting strong earnings growth relative to valuations.
AI Summary
- V-Marc India delivered the highest one-year return at 456%.
- Venus Remedies gained 297% over the last year.
- All five stocks have PEG ratios below 1.
- Thangamayil Jewellery posted a return of 184%.
- Wheels India and GE Power India also delivered triple-digit gains.