PEG Below 1: 8 Stocks Where Profit Growth Outpaces Multiple

# PEG Below 1: Eight Stocks Where Profit Growth Outpaces the Multiple A market that has stopped paying for growth creates an unusual screen result. Eight NSE names now show a price/earnings-to-growth ratio below 1, meaning the earnings growth rate is higher than the P/E multiple. A PEG below 1 is usually read as the market paying less per unit of profit growth than the growth rate itself implies. The screen is led by Chennai Petroleum. NSE: CHENNPETRO reports a 4.72 P/E against 999% profit growth, which compresses the PEG to 0.01. [Fedders Holding](/stock/FEDDERS) (BSE: 511628) follows at 0.02. [Akzo Nobel India](/stock/AKZOINDIA) prints 0.06 and [Tata Steel](/stock/TATASTEEL) 0.08. The list also includes Acme Solar, Ventive Hospitality, Piramal Finance and Waaree Energies. This is not a buy list. It's a map of where earnings momentum has run ahead of stock prices. The question for investors is whether the growth is structural or a low-base illusion. A 999% profit surge is almost always the latter, but the valuation cushion in Chennai Petroleum is large enough that the market has already priced a sharp mean reversion. PEG Below 1 Screen: What the Numbers Show The screen sorts companies with positive earnings and positive growth by PEG. [Chennai Petroleum](/stock/CHENNPETRO) sits at the extreme. A 4.72 P/E against 999% profit growth compresses the PEG to 0.01. If refining margins stay at current levels, the stock is trading for less than the next year's cash cycle. If they don't, the P/E will expand quickly because the denominator will shrink. That is the commodity trap. [Tata Steel](/stock/TATASTEEL) (NSE: TATASTEEL) has a PEG of 0.08. Steel earnings swung from a weak base, and the stock hasn't moved in line. Global steel prices and Chinese export quotas will decide whether this ratio is a bargain or a warning. Domestic infrastructure spending matters too. A stronger rupee and falling met coal prices would help. A China slowdown would not. [Akzo Nobel India](...