PEG Below 1: Profit Growth Outpaces P/E in 8 Stocks

PEG below 1 is showing up in Indian equities, but the latest FairStock screen is more extreme. The weekend scan for profitability-adjusted valuations flagged eight names with PEG ratios under 0.15. That list includes Chennai Petroleum, ACME Solar, Akzo Nobel India, Tata Steel and Waaree Energies. The screen uses trailing P/E divided by trailing reported net profit growth. It is not forward-looking, and it is not clean. But the pattern is hard to ignore: reported profit growth is running far ahead of the multiples the market is paying. Screen data put [Chennai Petroleum](/stock/CHENNPETRO) at a trailing P/E near 8.1 and net profit growth of roughly 184% YoY, producing a PEG of 0.04. That is the most extreme print. [Tata Steel](/stock/TATASTEEL) follows at 11.4x trailing earnings against 146% profit growth, a PEG of 0.08. [ACME Solar](/stock/ACMESOLAR) prints 0.14 on 42x earnings and 310% growth. [Waaree Energies](/stock/WAAREEENER) is at 37x trailing earnings and 265% growth, PEG 0.14. [Akzo Nobel India](/stock/AKZOINDIA) shows 31x and 240% growth, PEG 0.13. [Piramal Finance](/stock/PIRAMALFIN) is at 9.3x with 128% growth, PEG 0.07. [Ventive Hospitality](/stock/VENTIVE) shows 22x with 172% growth, PEG 0.13. BSE: 511628 also made the list with similar reported-growth dynamics. What the Screen Is Capturing Low PEGs in cyclicals are often mean-reversion signals, not buy signals. Chennai Petroleum and Tata Steel are commodity-facing. Their profit growth comes from depressed bases and price recovery. When global steel spreads compress or Singapore gross refining margins weaken, the denominator swings. In that context, a 0.04 PEG is not cheap; it is a snapshot of peak trailing earnings. I'd treat CHENNPETRO and TATASTEEL as trades on margin stability, not compounding growth stories. ACME Solar and Waaree Energies are different. Both sit in renewable capex and module manufacturing, where order books and execution drive profit. ACME's 310% growth off a low base is aggres...