PEG Screen: 8 Indian Stocks With Profit Growth Outpacing P/E

MUMBAI, Oct 14 (FairStock) - Eight Indian companies now trade at PEG ratios between 0.01 and 0.14, according to a FairStock PEG screen as of Oct. 14, a reading that puts profit growth ahead of price-earnings multiples. [Chennai Petroleum](/stock/CHENNPETRO) (NSE: CHENNPETRO) led at 0.01, followed by [Fedders Holding](/stock/511628) (BSE: 511628) at 0.02. The screen captured several names with profit growth above 100%, FairStock data showed. Sales trends were less consistent. Fedders Holding and [Akzo Nobel India](/stock/AKZOINDIA) (NSE: AKZOINDIA) posted negative sales growth even as profits jumped. That mix is the central tension in this screen. A low PEG ratio can signal an undervalued growth stock. It can also flag a company whose profit surge is a one-off, driven by a depressed base year or an exceptional gain. The screen's own notes caution that one-off profit swings are worth checking. What the PEG screen shows The PEG ratio is the price-earnings multiple divided by earnings growth. A reading below 1 is generally seen as cheap. A reading near zero, as with Chennai Petroleum, suggests the market has not priced in the latest profit spike. A 0.01 PEG is not a typo. It happens when the growth denominator is huge and the P/E is normal. FairStock data showed the eight names on the screen are Chennai Petroleum, Fedders Holding, [Acme Solar](/stock/ACMESOLAR) (NSE: ACMESOLAR), [Ventive Hospitality](/stock/VENTIVE) (NSE: VENTIVE), Akzo Nobel India, [Piramal Finance](/stock/PIRAMALFIN) (NSE: PIRAMALFIN), [Tata Steel](/stock/TATASTEEL) (NSE: TATASTEEL) and [Waaree Energies](/stock/WAAREEENER) (NSE: WAAREEENER). The PEG ratios ranged from 0.01 to 0.14. Only a few names in the screen have FairStock Scores above 70, FairStock data showed. That gap matters. A low PEG ratio is not the same as a durable franchise or a clean balance sheet. Sector impact: profit growth with mixed sales signals The screen tilts toward cyclicals and mid-cap industrials. [Tata Steel](/stock...