PEG Screen: Profit Growth Outpaces P/E in 7 NSE Stocks

0.01 is the PEG ratio for [Chennai Petroleum](/stock/CHENNPETRO) (NSE: CHENNPETRO) after profit grew 1,000% year-on-year, a FairStock.ai screen shows. Profit growth is outpacing earnings multiples across a pocket of NSE stocks. The ratio divides the price-earnings multiple by profit growth. A reading below 1 means the market is paying less per unit of growth than the growth itself implies. The screen flagged seven stocks with PEG ratios below 0.15. [Akzo Nobel India](/stock/AKZOINDIA) (NSE: AKZOINDIA), [ACME Solar](/stock/ACMESOLAR) (NSE: ACMESOLAR), [Ventive Hospital](/stock/VENTIVE) (NSE: VENTIVE) and [Piramal Finance](/stock/PIRAMALFIN) (NSE: PIRAMALFIN) all came in below 0.1. [Tata Steel](/stock/TATASTEEL) (NSE: TATASTEEL) printed 0.08 and [Waaree Energies](/stock/WAAREEENER) (NSE: WAAREEENER) 0.14 on double-digit profit growth. | NSE code | PEG ratio | Profit growth signal | |---|---|---| | [Chennai Petroleum](/stock/CHENNPETRO) | 0.01 | 1,000% YoY | | Akzo Nobel India | <0.1 | Double-digit | | ACME Solar | <0.1 | Double-digit | | Ventive Hospital | <0.1 | Double-digit | | Piramal Finance | <0.1 | Double-digit | | Tata Steel | 0.08 | Double-digit | | Waaree Energies | 0.14 | Double-digit | What the PEG screen shows A PEG of 0.01 is an extreme print. It comes from a 1,000% profit growth rate against a low single-digit P/E. The math is P/E divided by growth. When growth is 1,000%, the denominator overwhelms the P/E. Investors shouldn't read it as a 99% discount. Chennai Petro's profit growth is largely a base-effect recovery. Refining margins improved from a weak year-ago quarter. That doesn't make the next four quarters predictable. The same applies to Tata Steel, where steel prices and coking coal costs decide whether double-digit growth repeats. Sector impact: cyclicals dominate the list Three of the seven names are tied to commodities or manufacturing. [Chennai Petroleum](/stock/CHENNPETRO) (NSE: CHENNPETRO) depends on gross refining margins and produc...