Auto stocks with PEG ratio less than 1 to keep an eye on
News by Aliceblue News Desk
23 Sept 2025

Auto stocks with a PEG ratio below 1 can indicate potential undervaluation compared to their growth. PEG ratio is calculated by dividing the PE ratio by annual earnings growth, showing value versus growth.
The PEG ratio (Price/Earnings to Growth ratio) measures a stock’s valuation relative to its earnings growth. It is calculated by dividing the PE ratio by the company’s annual earnings growth rate. A lower PEG suggests the stock may be undervalued compared to its growth potential.
Eicher Motors
On September 23, 2025, Eicher Motors Ltd opened at ₹6,980.00, up 0.50% from its previous close of ₹6,945.10. The stock reached a high of ₹7,123.65 and a low of ₹6,980.00. By 2:04 PM, it traded at ₹7,000.50, a 0.80% increase, with a market cap of ₹1,92,008.31 crore.
Eicher Motors Ltd has a PEG ratio of 0.96, indicating the stock’s valuation aligns closely with growth.
Eicher Motors Ltd (NSE: EICHERMOT), incorporated in 1982, is a leading Indian automobile company and global middleweight motorcycle leader, with a joint venture with Volvo for trucks, buses, components, and technical consulting services.
Hero MotoCorp
On September 23, 2025, Hero MotoCorp Ltd opened at ₹5,430.00, up 0.08% from its previous close of ₹5,425.70. The stock reached a high of ₹5,512.80 and a low of ₹5,390.00. By 2:05 PM, it traded at ₹5,396.05, a 0.55% decline, with a market cap of ₹1,07,957.62 crore.
Hero MotoCorp Ltd has a PEG ratio of 0.90, suggesting the stock may be reasonably valued.
Hero MotoCorp Ltd (NSE: HEROMOTOCO), established in 1984 as a joint venture with Honda, is one of India’s leading motorcycle manufacturers, evolving from Hero Cycles and now fully owned by the Munjal promoters.
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Maruti Suzuki
On September 23, 2025, Maruti Suzuki India Ltd opened at ₹16,130.05, up 2.00% from its previous close of ₹15,808.35. The stock reached a high of ₹16,321.00 and a low of ₹16,050.00. By 2:02 PM, it traded at ₹16,101.55, a 1.85% increase, with a market cap of ₹5,06,236.88 crore.
Maruti Suzuki India Ltd has a PEG ratio of 0.48, indicating potential undervaluation relative to growth.
Maruti Suzuki India Ltd (NSE: MARUTI), established in 1981, is India’s market leader in passenger vehicles, manufacturing, selling motor vehicles, components, and spare parts, and is Suzuki Motor Corporation’s largest subsidiary.
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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.
FAQs
Q: Which 3 stocks Auto stocks have a PEG ratio less than 1?
A: Maruti Suzuki India Ltd, Hero MotoCorp Ltd, and Eicher Motors Ltd have PEG ratios below 1, indicating potential undervaluation.
Q: What does a PEG ratio below 1 mean for auto stocks?
A: A PEG ratio below 1 suggests the stock may be undervalued relative to its earnings growth potential.
Q: Why should investors monitor auto stocks with low PEG ratios?
A: Investors monitor low PEG auto stocks to identify growth opportunities at reasonable valuations compared to market peers.

News Author
Aliceblue News Desk















