PEG Below 1: India Profit Growth Outpaces P/E

Eight India-listed companies now show a PEG ratio below 1.0, according to a FairStock screen published Wednesday. Profit growth is outpacing price-to-earnings multiples at [Chennai Petroleum (NSE: CHENNPETRO)](/stock/CHENNPETRO), [Fedders Holding (NSE: 511628)](/stock/511628), [ACME Solar (NSE: ACMESOLAR)](/stock/ACMESOLAR), [Ventive Hospital (NSE: VENTIVE)](/stock/VENTIVE), [Akzo Nobel India (NSE: AKZOINDIA)](/stock/AKZOINDIA), [Piramal Finance (NSE: PIRAMALFIN)](/stock/PIRAMALFIN), [Tata Steel (NSE: TATASTEEL)](/stock/TATASTEEL), and [Waaree Energies (NSE: WAAREEENER)](/stock/WAAREEENER). PEG below one is a simple screen, not a buy signal. It divides a stock's P/E by its earnings growth rate. When the number falls under 1.0, the market is paying less per unit of growth. The screen flags 8 names, but the quality of that growth is not uniform. What the PEG Screen Shows in India The screen sorts by lowest PEG. Chennai Petroleum has a trailing P/E near 7.4 and profit growth of roughly 88% year over year, producing a PEG near 0.08. That is not normal operating performance. It is a base effect after a weak refining cycle. CPCL's FairStock Score sits at 72, but the growth rate won't repeat without another swing in gross refining margins. Tata Steel's inclusion is similar. The stock trades around a P/E of 13 with trailing profit growth above 120%. The PEG is below 0.12. Steel earnings in India have recovered from a low base, and the profit jump says more about where earnings were in March 2024 than where they're headed in fiscal 2026. Investors who ignore that base pay for a multiple that's temporarily low. Waaree Energies and ACME Solar tell a different story. Waaree has a P/E near 35 and profit growth of 48%, for a PEG near 0.73. ACME Solar's P/E is around 28 with growth of 65%, a PEG near 0.43. Both have FairStock Scores above 70. The solar names are growing on actual capacity additions, not just accounting swings. The market still doubts the sector because of exe...