High EPS and Low PE Stocks

High EPS (Earnings Per Share) stocks indicate a company generates substantial profit per share, reflecting strong financial performance. Low PE (Price-to-Earnings) ratio stocks are considered undervalued, as their share price is low relative to earnings. Investors often seek these stocks for potential growth and value investment opportunities.

The table below shows the high eps and low PE stocks based on the highest market capitalisation and 1-year return.

List of Low PE High EPS Stocks

Maruti Suzuki India Ltd

The Market Cap of Maruti Suzuki India Ltd is Rs. 424,305.14 crores. The stock’s monthly return is 9.31%. Its one-year return is 26.35%. The stock is 1.37% away from its 52-week high.

Maruti Suzuki India Limited is involved in the manufacturing, purchasing, and selling of motor vehicles, components, and spare parts. The company focuses on producing and selling both passenger and commercial vehicles. It also offers aftermarket parts and accessories under the brand names Maruti Suzuki Genuine Parts and Maruti Suzuki Genuine Accessories. 

In addition, the company facilitates the sale of pre-owned cars, provides fleet management services, and offers car financing. Maruti Suzuki’s vehicles are sold through three channels: NEXA, Arena, and Commercial. NEXA products include Baleno, Ignis, S-Cross, Jimny, and Ciaz, while Arena products include Vitara Brezza, Ertiga, Wagon-R, Dzire, Alto, Celerio, CelerioX, S-Presso, Eeco, and Swift.  

Dr Reddy’s Laboratories Ltd

The Market Cap of Dr Reddy’s Laboratories Ltd is Rs. 112,448.36 crores. The stock’s monthly return is -2.59%. Its one-year return is 22.80%. The stock is 5.30% away from its 52-week high.

Dr. Reddy’s Laboratories Limited is a pharmaceutical company headquartered in India with a global presence. The company provides a range of products and services, which include active pharmaceutical ingredients (APIs), generics, branded generics, biosimilars, and over-the-counter (OTC) medications. 

Its key focus areas in terms of therapeutic treatment include gastrointestinal, cardiovascular, diabetology, oncology, pain management, and dermatology. The company is divided into segments, namely Pharmaceutical Services and Active Ingredients, Global Generics, and Others. The Pharmaceutical Services and Active Ingredients segment primarily deals with the manufacturing and marketing of APIs and intermediates. 

Page Industries Ltd

The Market Cap of Page Industries Ltd is Rs. 46,884.25 crores. The stock’s monthly return is 0.77%. Its one-year return is 8.64%. The stock is 4.91% away from its 52-week high.

Page Industries Limited is an Indian company that is fully involved in the design, development, manufacturing, sales, marketing, distribution, retail, and e-commerce of products. The company holds the license from JOCKEY International Inc. 

With 15 manufacturing facilities located across Bangalore, Hassan, Mysore, Gowribidanur, Tiptur, and Tirupur, the company operates nationwide with a presence in over 1,800 cities and towns through 50,000 retail outlets. Page Industries Limited has a network of approximately 1,131 Exclusive Brand Outlets (EBOs), which includes 48 Jockey Woman EBOs and 71 Jockey Juniors EBOs.

Honeywell Automation India Ltd

The Market Cap of Honeywell Automation India Ltd is Rs. 43,182.62 crores. The stock’s monthly return is -5.75%. Its one-year return is 20.52%. The stock is 22.84% away from its 52-week high.

Honeywell Automation India Limited (HAIL) is an Indian company specializing in automation and control systems. The company operates three sectors: electronic systems manufacturing, equipment maintenance and repair, and machinery trading. Its Process solutions division provides a range of industrial automation products. 

The Building Solutions sector offers technologies for green and secure buildings in various industries. The Building Management Systems arm focuses on building automation, and the Advanced Sensing Technologies unit delivers sensors for healthcare and other industries.

3M India Ltd

The Market Cap of 3M India Ltd is Rs. 38,893.89 crores. The stock’s monthly return is 1.62%. Its one-year return is 10.74%. The stock is 18.34% away from its 52-week high.

3M India Limited is a company focused on technology and science, with different segments including Safety and Industrial, Transportation & Electronics, Health Care, and Consumer. In the Safety and Industrial division, they offer various industrial tapes and adhesives made from vinyl, polyester, foil, and specialty materials. 

The Health Care section provides medical supplies, devices, wound care products, infection prevention solutions, drug delivery systems, dental products, and food safety items. The Transportation & Electronics unit includes personal protection products, solutions for brand and asset protection, border control products, fire protection items, track and trace products, and cleaning and hygiene products for the hospitality industry.  

TVS Holdings Ltd

The Market Cap of TVS Holdings Ltd is Rs. 30,724.98 crores. The stock’s monthly return is 2.28%. Its one-year return stands at 159.15%. The stock is currently 8.78% away from its 52-week high.

TVS Holdings Limited, previously known as Sundaram Clayton Limited, is an Indian company that specializes in manufacturing and distributing auto components. The company operates in segments such as Automotive Components, Automotive Vehicles & Parts, Financial Services, and Others. 

It produces aluminum pressure die castings for a variety of vehicles including heavy commercial vehicles, passenger cars, and two-wheelers. Some of its products include flywheel housings, clutch housings, oil filters, turbochargers, and various other components for different vehicle segments. TVS Holdings Limited is a leading supplier of aluminum die castings to both the automotive and non-automotive industries.

Aster DM Healthcare Ltd

The Market Cap of Aster DM Healthcare Ltd is Rs. 20,691.84 crores. The stock’s monthly return is 1.03%. Its one-year return is 27.68%. The stock is 34.28% away from its 52-week high.

Aster DM Healthcare Limited is a provider of healthcare services. The company is divided into different segments: Hospitals, Clinics, Retail Pharmacies, and Others. The Hospitals segment includes hospitals and in-house pharmacies, while the Clinics segment includes clinics and in-house pharmacies. 

The Retail Pharmacies segment consists of standalone retail pharmacies and optical outlets. The Other segment offers healthcare consultancy services. Geographically, the company operates in the Gulf Corporation Council (GCC) States, including the United Arab Emirates, Qatar, Oman, Kingdom of Saudi Arabia, Jordan, Kuwait, Bahrain, and India. 

Bharat Rasayan Ltd

The Market Cap of Bharat Rasayan Ltd is Rs. 4,741.34 crores. The stock’s monthly return is -12.08%. Its one-year return is 22.47%. The stock is currently 28.00% away from its 52-week high.

Bharat Rasayan Limited, an India-based company, specializes in the production of technical-grade pesticides, formulations, and intermediates. The company offers a wide range of products, including insecticides like Zeta Cypermethrin, Alphacypermethrin, Bifenthrin, and Acetamiprid, herbicides such as Chlorimuron Ethyl and Clodinafop Propargyl, fungicides like Myclobutanil and Tebuconazole, and various intermediates. 

The company operates manufacturing plants in Rohtak, Haryana, and Bharuch, Gujarat. The Haryana plant has an annual capacity of 4,260 metric tons and facilities for bulk packaging of formulations.

Maithan Alloys Ltd

The Market Cap of Maithan Alloys Ltd is Rs. 3,389.02 crores. The stock’s monthly return is 5.51%. Its one-year return is 9.86%. The stock is currently 16.74% below its 52-week high.

Maithan Alloys Limited specializes in manufacturing and exporting specialized manganese alloys, such as ferro manganese, silico manganese, and ferro silicon, with a focus on niche markets. The company also generates and supplies wind power through its captive power plant. 

Operating primarily in the Ferro Alloys segment, Maithan’s ferro manganese is essential for producing silico manganese used in various steel products, while its silico manganese is a key ingredient in steel production and is particularly important in certain stainless steel varieties. Additionally, the company’s ferrosilicon is utilized in specialty steels and in small amounts for mild steel applications.  

Vadilal Industries Ltd

The Market Cap of Vadilal Industries Ltd is Rs. 2,858.13 crores. The stock’s monthly return is -1.68%. Its one-year return is 51.28%. The stock is currently 29.34% away from its 52-week high.

Vadilal Industries Limited, an Indian company, specializes in the manufacturing of ice cream, flavored milk, frozen desserts, processed foods, and other dairy products. The company also exports ice cream, dairy products, and processed food items such as frozen fruits, vegetables, pulp, ready-to-eat and ready-to-serve products. 

With ice cream production facilities in Gujarat and Uttar Pradesh, it processes frozen fruits, vegetables, and foods at a factory in Dharampur, District Valsad, Gujarat. Vadilal Industries Limited exports to various countries worldwide and operates primarily in the Food segment. 

What Are Low PE High EPS Stocks In India?

Low PE (Price-to-Earnings) and high EPS (Earnings Per Share) stocks are shares of companies that are relatively undervalued in the market. A low PE ratio suggests that the stock’s price is low compared to its earnings, making it attractive for value investors. High EPS indicates that the company is generating significant profits per share. These stocks are often sought after as they can provide good value, combining solid earnings performance with a lower price relative to those earnings, potentially offering growth potential.

Features Of Low PE and High EPS Stocks

The key features of low PE and high EPS stocks are crucial for investors seeking value and growth. High EPS signifies strong profitability per share, while a low PE ratio often suggests that a stock may be undervalued, providing a potential opportunity for growth.

1. Value Investment
   Low PE stocks are typically seen as undervalued by the market. This can attract value investors looking for stocks that may appreciate over time. They believe that the market will eventually recognize the true worth of these companies.
2. Strong Financial Performance
   High EPS indicates robust earnings, which reflects a company’s ability to generate profit efficiently. Companies with consistently high EPS often exhibit strong operational management, which can lead to sustained growth and increased investor confidence in their future prospects.
3. Attractive for Income Investors
   Investors seeking income might prefer high EPS stocks, as these companies are more likely to distribute dividends. A consistent dividend payout can provide a reliable income stream, making these stocks appealing for those prioritizing yield alongside capital appreciation.
4. Market Resilience
   Stocks with high EPS and low PE often demonstrate resilience during market downturns. Strong earnings can provide a buffer against economic challenges, leading to better performance compared to their peers. This quality can make them a safer investment choice in volatile markets.
5. Growth Potential
   Investors often view low PE stocks as having significant growth potential. As the market recognizes their value, these stocks may experience price increases, offering investors the chance for capital appreciation. This growth dynamic makes them attractive for long-term investment strategies.

High EPS Low PE Indian Stocks Based on 6 Month Return

The table below shows the high EPS and low PE Indian stocks based on 6-month returns.

Stocks With Low PE Ratio And High EPS Based on 5 Year Net Profit Margin

The table below shows the stocks with low PE ratio and high EPS based on a 5-year net profit margin.

Best Low PE High EPS Stocks Based on 1M Return

The table below shows the best low PE and high EPS stocks based on 1-month return.

High Dividend Yield Low PE High EPS Stocks

The table below shows the high dividend yield Low PE and High EPS stocks.

Historical Performance of Low PE High EPS Stocks

The table below shows the historical performance of low PE and high EPS stocks based on 5-year CAGR.

Factors To Consider When Investing In Low PE High EPS Stocks

The factors to consider when investing in low PE and high EPS stocks are company fundamentals. Key metrics like revenue growth, debt levels, and profit margins can provide insights into the sustainability of earnings. A strong fundamental foundation increases the likelihood of long-term success for the stock.

1. Industry Analysis
   Different industries have varying PE ratios and growth prospects. Understanding the industry context helps evaluate whether a low PE is justified. Investing in companies within a stable or growing industry can enhance the chances of capital appreciation and reduced risk.
2. Market Conditions
   Broader market trends and economic conditions significantly impact stock performance. Monitoring market sentiment and economic indicators can help investors gauge whether the timing is right for investment. This awareness can lead to more strategic decisions and improved returns.
3. Competitive Positioning
   Evaluate a company’s position within its industry. Strong competitors may hinder growth potential, while a solid market position can enhance profitability. Companies with unique advantages or a loyal customer base tend to perform better over time, making them more attractive investments.
4. Management Quality
   The effectiveness of a company’s management team plays a vital role in its success. Experienced leaders with a proven track record can navigate challenges and capitalize on opportunities. Assessing management quality can provide insights into the company’s future performance and stability.

How To Invest In the Best Low PE High EPS Stocks?

Investing in low PE (Price-to-Earnings) and high EPS (Earnings Per Share) stocks can be a smart strategy for maximizing returns. Start by researching companies with strong fundamentals and stable earnings growth. Analyze their PE ratios and EPS figures to identify undervalued stocks with potential for expansion. Utilizing platforms like Alice Blue allows you to access valuable market data and insights.  

Impact of Government Policies on Best Low PE High EPS Stocks

Government policies can significantly influence low PE high EPS stocks, impacting their valuation and performance. Policies such as tax incentives for certain industries can enhance profitability, making these stocks more attractive. Conversely, increased regulation or higher taxes may hinder growth, affecting earnings potential and leading to lower stock prices.

Additionally, government spending initiatives can create opportunities for companies within targeted sectors. For instance, infrastructure investments may benefit construction and engineering firms, boosting their EPS and encouraging investor interest.

Furthermore, monetary policies, like interest rate changes, affect overall market conditions. Lower interest rates can lead to increased borrowing and spending, benefiting companies with solid fundamentals, while high rates may suppress growth, impacting their stock valuations.

How Low PE High EPS Stocks Perform in Economic Downturns?

Typically, these stocks are seen as more resilient because their strong earnings can provide some buffer against adverse market conditions. Investors often view them as safer investments when the economy is struggling, as they may be less volatile and offer consistent performance.  

During recessions, the stability of high EPS can attract cautious investors looking for reliable returns. However, the effectiveness of low PE and high EPS stocks can vary based on industry and market dynamics, requiring careful analysis.

Advantages Of Investing In Low PE High EPS Stocks?

The primary advantage of investing in low PE and high EPS stocks lies in their potential for significant returns. These stocks often indicate undervaluation and strong profitability, which can lead to attractive investment opportunities for discerning investors seeking both growth and value.

1. Undervalued Opportunities
   Low PE stocks often represent undervalued companies, making them appealing for value investors. This undervaluation can lead to substantial price appreciation as the market recognizes the true worth of these companies, providing potential for significant capital gains.
2. Strong Earnings Power
   High EPS signifies robust earnings performance, reflecting a company’s ability to generate substantial profits. This strong earnings power can indicate financial stability and operational efficiency, making these stocks attractive for investors seeking reliable performance over time.
3. Potential for Dividends
   Companies with high EPS often distribute dividends, providing investors with a steady income stream. Investing in low PE high EPS stocks allows investors to benefit from both capital appreciation and regular dividend payouts, enhancing total return on investment.
4. Risk Mitigation
   Investing in low PE high EPS stocks can help mitigate risks associated with market volatility. Companies demonstrating strong earnings are often more resilient during economic downturns, making these stocks safer bets compared to high PE counterparts that may be more sensitive to market fluctuations.
5. Attractive Growth Prospects
   Low PE stocks may possess significant growth potential as the market re-evaluates their value. If a company continues to deliver strong earnings, its stock price may increase, providing investors with the opportunity for long-term growth and wealth accumulation.

Risks Of Investing In Low PE High EPS Stocks?

The main risk of investing in low PE and high EPS stocks is the potential for misjudgment regarding their true value. While these stocks may appear attractive, underlying issues could cause their performance to falter, leading to unexpected losses for investors.

1. Market Mispricing
   Low PE stocks can sometimes be undervalued for valid reasons, such as poor management or declining industries. If investors overlook these factors, they may end up investing in companies with bleak prospects, leading to potential financial losses.
2. Earnings Manipulation
   Some companies may artificially inflate their EPS through accounting practices, creating a misleading appearance of profitability. If these earnings figures are not sustainable, investors may face sudden declines in stock value once the truth is revealed.
3. Industry Volatility
   Investing in low PE high EPS stocks within volatile industries can be risky. Economic downturns or shifts in consumer preferences may disproportionately affect these companies, causing stock prices to drop significantly and leading to potential losses for investors.
4. Limited Growth Potential
   While low PE and high EPS stocks may seem appealing, some may lack significant growth opportunities. Companies in mature industries often experience slow growth, which can limit future earnings potential and lead to stagnant stock prices over time.
5. Negative Market Sentiment
   Market perception can greatly influence stock performance, regardless of a company’s fundamentals. If negative sentiment surrounds a low PE high EPS stock, it may struggle to gain traction, causing prices to decline and increasing investment risks.

Low PE High EPS Stocks GDP Contribution

Low PE and high EPS stocks often play a vital role in contributing to a country’s GDP by driving economic growth and employment. Companies with strong earnings and undervalued stock prices can reinvest profits into expansion, leading to increased production and job creation. This dynamic fosters a healthier economy as businesses thrive and consumer confidence grows.

Moreover, these companies tend to be resilient during economic fluctuations, maintaining stable earnings that support overall economic stability. Their ability to weather downturns can contribute to sustained GDP growth, making them critical players in the broader economic landscape.

Who Should Invest In Best Low PE High EPS Stocks?

Investing in the best low PE high EPS stocks can be a strategic choice for various types of investors. These stocks offer the potential for growth and value, making them suitable for those looking to enhance their investment portfolios.

1. Value Investors
   Value investors seek undervalued stocks that offer strong potential for appreciation. Low PE and high EPS stocks align perfectly with this strategy, providing opportunities to buy shares at attractive prices while benefiting from robust earnings.
2. Income Seekers
   Investors looking for reliable income through dividends should consider these stocks. Companies with high EPS often distribute dividends, offering a steady income stream that can supplement returns, making them appealing for income-focused investors.
3. Long-Term Investors
   Long-term investors aiming for capital appreciation will find these stocks attractive. As the market recognizes the true value of low PE high EPS stocks, there is significant potential for price appreciation over time, aligning with long-term investment goals.
4. Risk-Averse Investors
   Risk-averse investors may prefer these stocks due to their stable earnings. Companies with high EPS typically exhibit resilience during market downturns, providing a safer investment option compared to more volatile stocks, thus appealing to those prioritizing capital preservation.
5. Growth-Oriented Investors
   Investors seeking growth opportunities can benefit from low PE high EPS stocks. As the market reassesses these undervalued companies, the potential for substantial growth exists, making them suitable for those focused on long-term wealth accumulation.

Top Low PE High EPS Stocks In India – FAQs

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.