Introduction:
The PEG ratio, which compares a company’s price-to-earnings (P/E) ratio to its earnings growth rate, is a key metric in determining whether a stock is undervalued. A PEG ratio under 1 typically suggests that the stock is priced lower than its growth potential.
In the defence sector, several companies are currently trading with a PEG ratio under 1, indicating that they are undervalued relative to their earnings growth expectations. Below are three companies with a PEG ratio of less than 1.
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NIBE Ltd:
On January 3, NIBE Ltd (BSE: NIBE) opened at ₹1684.50, reached a high of ₹1715.00 and a low of ₹1670.00, closing at ₹1704.70, marking an increase of 1.01%. The company’s market capitalisation is ₹2,306.40 crore.
NIBE Ltd has a PEG ratio of 0.18, suggesting it is undervalued for its growth potential. The company focuses on thermal management solutions across industries. NIBE’s innovation and quality support its long-term market presence.
NIBE Ltd manufactures electrical components, focusing on thermal management solutions for industries like automotive and electronics. The company is recognised for its innovation and quality. NIBE’s products are designed to enhance industrial efficiency and sustainability.
Astra Microwave Products Ltd:
Astra Microwave Products Ltd (BSE: ASTRAMICRO) opened at ₹790.75, reached a high of ₹795.95 and a low of ₹786.00, closing at ₹787.90, marking an increase of 0.22%. The company’s market capitalisation is ₹7,480.72 crore.
Astra Microwave Products Ltd has a PEG ratio of 0.55, reflecting healthy growth prospects. The company specialises in microwave components for defence and aerospace. Its advanced technology strengthens its competitive position.
Astra Microwave Products Ltd designs and manufactures microwave components for defence, aerospace, and communication sectors. Their products include radar systems and electronic warfare solutions. The company has a strong presence in both domestic and international markets.
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Data Patterns (India) Ltd:
Data Patterns (India) Ltd (BSE: DATAPATTNS) opened at ₹2500.35, reached a high of ₹2541.00 and a low of ₹2477.95, closing at ₹2491.00, marking a decrease of 0.07%. The company’s market capitalisation is ₹13,945.61 crore.
Data Patterns (India) Ltd has a PEG ratio of 0.86, indicating strong growth at a reasonable price. The company provides electronic systems for the defence and aerospace sectors. Its solutions contribute to India’s growing defence industry.
Data Patterns (India) Ltd specialises in electronic systems for defence and aerospace applications. The company provides complete solutions from design to integration. Data Patterns is a key player in India’s defence sector.
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.