Marksans Pharma and 2 other stocks with PEG less than 1 to keep in your watchlist

Synopsis:
This article highlights three such stocks, BLS E-Services, Marksans Pharma, and Genus Power Infrastructures, which combine low PEG ratios with high ROCE, offering strong growth potential, efficient operations, and attractive valuations.

Investors often seek fundamentally strong stocks that offer both value and efficient capital use. Two key metrics to screen such opportunities are the PEG ratio (Price/Earnings to Growth) and ROCE (Return on Capital Employed). A PEG ratio below 1 indicates undervaluation relative to earnings growth, while a ROCE above 15 percent reflects strong operational efficiency. Together, these metrics can highlight companies with both upside potential and solid financial health.

The stock has a low PEG ratio of 0.28, indicating it may be undervalued relative to its growth, and a healthy ROCE of 16.5 percent, reflecting efficient capital utilisation. With a market capitalisation of Rs. 1,649.5 cr, the shares of  BLS E-Services Ltd closed at Rs. 181.55 per share, from its previous close of Rs. 189.3 per share.

BLS E-Services Ltd is a digital service provider offering business correspondent services, assisted e-services, and e-governance solutions across India. The company plays a key role in promoting digital and financial inclusion by facilitating services like cash deposits, Aadhaar enrolment, utility payments, and public service access.

Marksans Pharma has a low PEG of 0.95 and ROCE of 20.03 percent, delivers consistent profitability through its global pharmaceutical presence, supported by strong fundamentals and an attractive valuation. With a market capitalisation of Rs. 9,568.5 cr, the shares of  Marksans Pharma Ltd closed at Rs. 211.15 per share, from its previous close of Rs. 214.75 per share.

Marksans Pharma is a pharmaceutical company that develops and manufactures generic drugs, focusing on formulations in areas like oncology, cardiology, anti-diabetic, and pain management. It primarily serves regulated markets such as the US, UK, and Australia, offering over-the-counter (OTC) and prescription medicines.

Genus Power’s PEG of 0.32 and ROCE of 19.2 percent reflect its efficient operations and high-growth prospects in the smart metering and power infrastructure sector. With a market capitalisation of Rs. 11,310.6 cr, the shares of  Genus Power Infrastructures Ltd closed at Rs. 372.15 per share, from its previous close of Rs. 385.45 per share.

Genus Power Infrastructures Ltd is a leading provider of smart metering solutions and power infrastructure services. It manufactures energy meters and executes turnkey power projects, including substations and rural electrification.

Written by Manideep Appana

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