A Share is said to be undervalued when its price-earnings ratio is towards the lower end when compared to its industry peers. A PE Ratio (Price-earnings ratio) indicates the relationship between the price offered for the stock in the exchange and the earnings of the company.
Share prices are as it is because of various external or internal reasons apart from the companies performance, It could be affected due to misconceptions, mob sentiments, and fake news also. But a wise investor must know that a fundamentally strong stock will always find its way in the long term. Here are 10 Stocks we feel are undervalued and provide a good amount of dividend.
| Sl No | Stock Name | Market Capital |
|---|---|---|
| 1 | HCL Technologies | ₹ 2,56,047.87 Cr. |
| 2 | Aditya Birla Sun Life Asset Management | ₹ 12,408.48 Cr. |
| 3 | REC Ltd | ₹ 25,772.68 Cr. |
| 4 | Cochin Shipyard | ₹ 4,186.93 Cr. |
| 5 | Hinduja Global | ₹ 5,207.46 Cr. |
| 6 | NMDC | ₹ 31,943.60 Cr. |
| 7 | JK Lakshmi Cement | ₹ 5,099.23 Cr. |
| 8 | V Mart Retail | ₹ 5,512.52 Cr. |
| 9 | Adani Total Gas | ₹ 2,98,779.91 Cr. |
| 10 | Oracle Financial Services | ₹ 27,735.99 Cr. |
1. HCL Technologies
HCL is a multinational company that handles IT services and consulting. It was founded in the year 1976 and is one of the biggest players in the country. It is also among the top 20 largest publicly traded companies in India. In March 2021, HCL Technologies expands its partnership with Google Cloud.
It is a fundamentally strong share, It has a healthy PE of 20.97.and pays out at a dividend yield rate of 4.04%.
The shares are currently trading at Rs 1,043.
| Market Cap | ₹ 2,56,047.87 Cr. |
| P/E | 23.55 |
| P/B | 6.01 |
| Sales Growth | 9.21% |
2. Aditya Birla Sun Life Asset Management
Aditya Birla sun life AMC is an asset management company belonging to the prestigious Birla group. It is registered under the securities and exchange board of India. The company offers various investment schemes including sector-specific equity schemes, fund of fund schemes, hybrid and monthly income funds, debt and treasury products.
It is a fundamentally strong share, It has a healthy PE of 17.91.and pays out at a dividend yield rate of 0%.
The shares are currently trading at Rs 418.45
| Market Cap | ₹ 12,408.48 Cr. |
| P/E | 18.79 |
| P/B | 5.77 |
| Sales Growth | -4.12% |
3. REC Ltd
REC is an infrastructure finance company that lends money to construction companies and is a public sector undertaking formed in the year 1969. It also promotes various other projects in the country like power projects based out of India. REC is a navaratna A certified company and seems to be a very good investment at this point in time.
It is a fundamentally strong share, It has a healthy PE of 2.35.and pays out at a dividend yield rate of 10.67%.
The shares are currently trading at Rs 119
| Market Cap | ₹ 25,772.68 Cr. |
| P/E | 2.57 |
| P/B | 0.51 |
| Sales Growth | 18.70% |
4. Cochin Shipyard
Cochin Shipyard is a shipbuilding and maintenance company based out of Kochi as the name suggests. It was founded in the year 1972 by the government of India. It generated a revenue of 3670 crores in 2021. The services they provide building platforms supply vessels and double-hulled oil tankers.
It is a fundamentally strong share, It has a healthy PE of 7.64.and pays out at a dividend yield rate of 5.12%.
The shares are currently trading at Rs 327
| Market Cap | ₹ 4,186.93 Cr. |
| P/E | 7.14 |
| P/B | 0.96 |
| Sales Growth | -17.64% |
5. Hinduja Global
Hinduja global solutions private limited is an overall business solutions provider and also provides allied consultancy services in India. It was formed in the year 1973. It is headquartered in the city of Bengaluru and has its subsidiaries in Canada, Australia Etc.
It is a fundamentally strong share, It has a healthy PE of 7.66.and pays out at a dividend yield rate of 22.68.
The shares are currently trading at Rs 970
| Market Cap | ₹ 5,207.46 Cr. |
| P/E | 0 |
| P/B | 1.35 |
| Sales Growth | -0.78% |
6. NMDC
NMDC Ltd is a mining company and stands for National Mineral Development Corporation. It was formed in the year 1958 by the government as it is identified as a public sector undertaking. It is involved in the mining of various minerals like iron ore, bentonite, magnesite, diamond, tin, etc.
It is a fundamentally strong share, It has a healthy PE of 3.96.and pays out at a dividend yield rate of 11.62
The shares are currently trading at Rs 127
| Market Cap | ₹ 31,943.60 Cr. |
| P/E | 3.4 |
| P/B | 0.92 |
| Sales Growth | 31.38% |
7. JK Lakshmi Cement
Jk Lakshmi cement is one of the leading civil companies in the country and is a mass producer of cement and allied building material products. Founded in the year 1938. J K Lakshmi cement
JK Lakshmi Cement is the first cement manufacturer in India.
It is a fundamentally strong share, It has a healthy PE of 10.80.and pays out at a dividend yield rate of 1.18
The shares are currently trading at Rs 425
| Market Cap | ₹ 5,099.23 Cr. |
| P/E | 11.96 |
| P/B | 2.08 |
| Sales Growth | 8.44% |
8. V Mart Retail
V Mart retail private limited is an Indian online shop made for fashion. It was founded in 2002. The stock is best known for its amazing TTM PPE which is astonishingly impressive. is one of India’s fastest-growing value-retailer promoted by Mr. Lalit Agarwal, a first-generation entrepreneur.
It is a fundamentally strong share, It has a healthy PE of 527.50.and pays out at a dividend yield rate of 0.02
The shares are currently trading at Rs 3107
| Market Cap | ₹ 5,512.52 Cr. |
| P/E | 473.59 |
| P/B | 6.49 |
| Sales Growth | -35.29% |
9. Adani Total Gas
Adani Total Gas Limited is an India-based company that is engaged in the business of natural gas and was founded in the year 2005 by the Adani group of businesses. It supplies natural gas to transport domestic commercial industrial and vehicle users in 13 geographical areas. It is a fundamentally strong share, It has a healthy PE of 516.30 .and pays out at a dividend yield rate of 0.01
The shares are currently trading at Rs 2390
| Market Cap | ₹ 2,98,779.91 Cr. |
| P/E | 592.04 |
| P/B | 122.96 |
| Sales Growth | -9.55% |
10. Oracle Financial Services
Oracle Financial Services Private Limited. It is in the business of retail banking, corporate banking, and insurance technology, They also provide various financial consultancy services. They are seasoned in areas like Risk and Finance, Revenue Management, and Billing. Insurance, Cloud Infrastructure. It has a healthy PE of 15.01 .and pays out at a dividend yield rate of 5.79
The shares are currently trading at Rs 3283.70
| Market Cap | ₹ 27,735.99 Cr. |
| P/E | 15.31 |
| P/B | 4.91 |
| Sales Growth | 3.40% |
Equity shares tend to be more volatile than others because both the supply and demand are relatively price elastic. Investors are requested to take caution and follow conservatism while trading. Happy Trading.
