The PEG ratio, or Price/Earnings-to-Growth ratio, compares a company’s Price-to-Earnings (P/E) ratio to its expected growth rate. A PEG ratio below 1.0 suggests that investors may be paying less per unit of earnings growth, indicating that the stock could be undervalued.
Penny stocks, which are priced very low and have low market capitalization, are popular among small investors due to their potential for significant gains. While penny stocks are often perceived as offering high returns, they are also typically illiquid, meaning they are traded in lower quantities compared to other stocks.
Here are some penny stocks with a PEG ratio less than 1:
Teesta Agro Industries Ltd:
– Market capitalization of Rs. 53.9 crores
– Started trading at Rs. 94.60 and closed at Rs. 95.50
– Revenue decreased by 22% from December quarter to March quarter
– Net profits increased by 414% during the same timeframe
– Undervalued with a PE ratio of 13.4 times and a PEG ratio of 0.28 times
Seacoast Shipping Services Ltd:
– Market capitalization of Rs. 226 crores
– Started trading at Rs. 4.23 and closed at Rs. 4.13
– Revenue increased by 347% from December quarter to March quarter
– Net profits increased by 10,614% during the same period
– Undervalued with a PE ratio of 11.1 times and a PEG ratio of 0.03 times
Bizotic Commercial Ltd:
– Market capitalization of Rs. 41.7 crores
– Started trading at Rs. 51.00 and closed at Rs. 51.89
– Revenue increased by 76% from H1FY24 to H2FY24
– Net profits surged by 185% during the same period
– Undervalued with a PE ratio of 13.6 times and a PEG ratio of 0.15 times
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