Sub-1 PEG Screen: Profit Growth Outruns P/E in 8 Stocks

MUMBAI: Eight Indian stocks now pass a sub-1 PEG screen, led by Chennai Petroleum at 0.01 and ACME Solar at 0.06. A PEG below 1.0 means the market is paying less per unit of trailing profit growth than the growth rate itself implies. Akzo Nobel India, Tata Steel, Waaree Energies, Ventive Hospitality, and Piramal Finance are among the others. FairStock.ai data shows [Chennai Petroleum](/stock/CHENNPETRO) with trailing profit growth of 312% and a P/E of 3.4. The math gives a 0.01 PEG. [ACME Solar](/stock/ACMESOLAR) pairs 520% trailing profit growth with a 31.2 P/E for a 0.06 PEG. These are two different business models, but the screen treats them as one thing: earnings growth has outpaced the multiple. What the Sub-1 PEG Screen Captures The screen uses trailing twelve-month numbers. That's the catch. It's backward-looking. A sub-1 reading says nothing about whether the next four quarters can repeat the growth. | Stock | NSE code | P/E (TTM) | Profit growth (TTM) | PEG | |---|---:|---:|---:|---:| | [Chennai Petroleum](/stock/CHENNPETRO) | NSE: CHENNPETRO | 3.4 | 312% | 0.01 | | [ACME Solar](/stock/ACMESOLAR) | NSE: ACMESOLAR | 31.2 | 520% | 0.06 | | [Waaree Energies](/stock/WAAREEENER) | NSE: WAAREEENER | 39.6 | 180% | 0.22 | | [Tata Steel](/stock/TASTEEL) | NSE: TATASTEEL | 22.8 | 57% | 0.40 | | [Ventive Hospitality](/stock/VENTIVE) | NSE: VENTIVE | 43.2 | 80% | 0.54 | | [Piramal Finance](/stock/PIRAMALFIN) | NSE: PIRAMALFIN | 33.0 | 50% | 0.66 | | [Akzo Nobel India](/stock/AKZOINDIA) | NSE: AKZOINDIA | 43.8 | 60% | 0.73 | The list spans individual sectors rather than one theme. That limits its use as a sector call. It also forces investors to split the names by earnings quality, not just by PEG. Market and Sector Impact The Nifty 50 trades near 21 times trailing earnings, so a sub-1 PEG on these names stands out. But low trailing PEG in cyclicals can be a sign of peak earnings. Chennai Petroleum is the clearest example. The refiner's 0.01 PEG comes from a low ...