Top 10 Companies Trading At A PE Of Less Than 10x

The price to earnings ratio or the PE ratio is widely used by the analyst fraternity to measure the relative valuation of scrips. In this article, we have looked at the top 10 companies that are trading at a PE multiple of less than 10x on a trailing 12-month basis. As per our methodology, we have used the following criteria as filters: 1) Companies that have posted a positive bottomline in the last four quarters, 2) Companies that have witnessed an upward movement in their bottomline in the last three quarters, and 3) Companies that have an equity base of more than Rs 20 crore. All the bottomline figures are on a standalone basis.

Company	MCAP (Rs/Cr)	TTM PAT (Rs/Cr)	PE (x)	YTD Return (%)
Acropetal Technologies	60.67	31.25	1.94	37.57
Store One Retail India	60.3	28.98	2.08	233.89
Rathi Steel & Power	30.4	13	2.34	6
Global Offshore Services	189.19	67.44	2.81	9.34
Ansal Housing & Construction	100.44	31.94	3.14	53.49
Panoramic Universal	71.52	21.16	3.38	22.83
Nakoda	196.22	55.77	3.52	19.44
Shilpi Cable Technologies	83.67	19.76	4.23	130.61
Sumeet Industries	111.92	25.57	4.38	-17.24
Ankit Metal & Power	173.11	38.54	4.49	32.97

Source: Dion Insight


Acropetal Technologies
Acropetal Technologies is basically engaged in providing integrated enterprise solutions, primarily for engineering design services, information technology (IT) infrastructure and healthcare industries worldwide. The company has operations in regions like the United States, the Middle East, Europe and Asia. It was founded in 2001, and is headquartered at Bengaluru, Karnataka.

The company has topped our list as per the methodology we have followed. The stock discounts its trailing 12-month earnings by a mere 1.94x. The company has a market capitalisation of Rs 60.67 crore and the aggregate bottomline for the last four quarters stands at Rs 31.25 crore. If we look at the year-to-date performance, we find that the scrip has given a return of 37.57 per cent.


Store One Retail India
The company operates a chain of multi-brand retail stores in India. The company was formerly known as Indiabulls Retail Services, and changed its name to Store One Retail India in October 2009. It was incorporated in 2005 and is based in Gurgaon. Store One Retail India is a subsidiary of Indiabulls Wholesale Services. In the recent past, it has ventured into cities like Pune and Nagpur.

The company is placed second on our list. The stock discounts its trailing 12-month earnings by a mere 2.08x. The company has a market capitalisation of Rs 60.30 crore and the aggregate bottomline for the last four quarters stands at Rs 28.98 crore. If we look at the year-to-date performance, we find that the scrip has given a stupendous return of 233 per cent.


Rathi Steel & Power
The company is engaged in the manufacture and sale of rebars and wire rods, primarily for the construction industry in India. The company operates through two plants at Ghaziabad in Uttar Pradesh and Sambalpur in Odisha. The Ghaziabad plant has an installed capacity of 1,25,000 TPA and a steel melting shop with 40,000 TPA installed capacity. The Odisha plant comprises facilities for the production of 1,50,000 TPA sponge iron and a steel melting shop of 1,50,000 TPA.

The company is placed third on the list. On a trailing 12-month basis, the stock trades at a PE of 2.34x. The market capitalisation stands at Rs 30.40 crore. The stock has remained flat in terms of performance, appreciating by a mere 6 per cent on a YTD basis.


Global Offshore Services (Formerly known as Garware Offshore Services)
Promoted by the Garware Group and operating out of Mumbai, Global Offshore Services is engaged in the charter of offshore support vessels in the Far East, Africa, the North Sea region, India and the Middle East. Its vessels provide support services to oil & gas exploration activities. At present, the total fleet size of the company stands at 13 vessels.

The stock discounts its trailing 12-month earnings by a mere 2.81x. The market capitalisation of the company stands at Rs 189.19 crore and the aggregate bottomline for the last four quarters stands at Rs 67.44 crore. If we look at the year-to-date performance, we find that the scrip has given a return of 9.34 per cent.


Ansal Housing & Construction
Based in New Delhi, Ansal Housing & Construction is engaged in the development, promotion and maintenance of residential, commercial and hospitality properties. The company’s project portfolio includes townships, residential and commercial complexes, retail spaces, hotels and cinema halls. The company has a presence mainly in the northern part of the country. It operates restaurants under the Food Garh, Super Stars and The Great Kabab Factory brand names.

The stock discounts its trailing 12-month earnings by a mere 3.14x. The market capitalisation of the company stands at Rs 100.44 crore and the bottomline for the last four quarters aggregates to Rs 31.94 crore. If we look at the year-to-date performance, we find that the scrip has given a return of 53.49 per cent.


Panoramic Universal
Based in Mumbai, Panoramic Universal is engaged in the information technology (IT), hospitality and travel businesses. The company offers software development services as well as operates a chain of hotel and resort properties in India, the United States and New Zealand. It is also engaged in providing travel and tourism services and operates two travel portals, viz. travelhot.in and traveluniversally.com.

The stock discounts its trailing 12-month earnings by 3.38x. The company has a market capitalisation of Rs 71.52 crore and the aggregate bottomline for the last four quarters stands at Rs 21.16 crore. If we look at the year-to-date performance, we find that the scrip has given a good return of 22.83 per cent.


Nakoda
Nakoda Ltd. manufactures and trades in partially oriented yarn, polyester texturised yarn and polyester fully drawn yarn in India. The company was formerly known as Nakoda Textile Industries and changed its name to Nakoda Limited in February 2010. In 2010, it expanded its spinning capacity from 50,000 MTPA to 1,00,000 MTPA. The company has extended its focus on its core business areas by implementing a continuous polymerisation (CP) plant for backward integration with a capacity of 1,40,000 MTPA.

The stock discounts its trailing 12-month earnings by 3.52x. The company’s market capitalisation stands at Rs 196.22 crore and the bottomline for the last four quarters aggregates to Rs 55.77 crore. If we look at the year-to-date performance, we find that the scrip has given a return of 19.44 per cent.


Shilpi Cable Technologies
Based in New Delhi, Shilpi Cable Technologies was founded in the year 2006. Starting off with a project to manufacture RF cables, it has specialised in a wide variety of cables used in the telecom, automobile and power sectors. The production plant is spread over a considerable area of 10 acres, with a work area of 3.5 acres. It has a monthly production capacity of 1,200 kms. As per the information available on its website, the company has plans to increase its production capacity by a considerable amount.

The stock discounts its trailing 12-month earnings by 4.23x. The company’s market capitalisation stands at Rs 83.67 crore and the aggregate bottomline for the last four quarters stands at Rs 19.76 crore. If we look at the year-to-date performance, we find that the scrip has given a hefty return of 130.61 per cent.


Sumeet Industries
Sumeet Industries is another company from the textile sector. Based in Surat, the company manufactures and exports polyester yarn, polypropylene yarn, woven fabrics, menthol and allied products. It also exports its products directly as well as through merchant exporters to Egypt, Saudi Arabia, Syria, South Africa, Nepal, Bangladesh, Sri Lanka, Spain, China and Europe.

This is the only stock on our list that has yielded a negative return of 17.24 per cent. The stock discounts its trailing 12-month earnings by 4.38x. The market capitalisation of the company stands at Rs 111.92 crore and the aggregate bottomline for the last four quarters stands at Rs 25.57 crore.


Ankit Metal & Power
Based in Kolkata, Ankit Metal & Power was floated in the year 2005. It started off as an integrated steel plant to produce 1,00,000 MTPA of rolled products through its steel melting shop, a billets and rolling mill along and a 12.5 MW captive power plant. At present, the sponge iron capacity stands at 2,10,000 TPA, the rolling mill has a capacity of 1,00,000 TPA and the wire rod mill has a capacity of 1,00,000 TPA.

The stock discounts its trailing 12-month earnings by 4.49x. The market capitalisation of the company stands at Rs 173.11 crore and the aggregate bottomline for the last four quarters stands at Rs 38.54 crore. If we look at the year-to-date performance, we find that the scrip has given a return of 32.97 per cent.