Introduction:
The PEG (Price/Earnings to Growth) ratio compares a company’s P/E (Price to Earnings) ratio with its earnings growth rate, offering a more complete measure for assessing stock value. By integrating value & growth factors, the PEG ratio helps investors make better-informed choices.
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A lower PEG ratio indicates that a stock may be undervalued in relation to its future growth potential. This ratio is particularly important for growth investors, as it highlights stocks with significant earnings growth prospects at an attractive price.
Titagarh Rail Systems Ltd
On January 10, Titagarh Rail Systems Ltd (BSE: TITAGARH) opened at ₹1,091.10, hit a high of ₹1,091.35 and a low of ₹1,021.65, closing at ₹1,039.20, down by 4.67%. The company’s market capitalisation is ₹13,995.30 crore.
The stock has a Price/Earnings-to-Growth (PEG) ratio of 0.55, which is lower than 1, indicating strong growth potential at an attractive price. Key financial metrics include a Price-to-Earnings (P/E) ratio of 46.63 and a Return on Capital Employed (ROCE) of 24.97%.
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Titagarh Rail Systems is a leading railway manufacturing company specialising in wagons, coaches, and signalling systems. It focuses on delivering innovative solutions for railway infrastructure. The company plays a crucial role in modernising India’s rail network.
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.
