The price-to-earnings ratio (P/E) is one of the most popular stock valuation metric. It helps determine if a stock is overvalued or undervalued.
A government-owned company and one of India’s largest oil and gas producers. ONGC often displays a low P/E ratio due to the cyclical nature of energy markets.
Coal India also tends to exhibit a low P/E ratio, which may reflect environmental concerns and the shifting landscape of energy sources.
NMDC is India’s biggest iron ore producer and is also government-owned. Like other commodity-related businesses, NMDC’s P/E can fluctuate based on iron ore prices.
NTPC, India’s top power producer, grapples with low P/E amid renewables shift
A leading steel producer in India, also under government ownership. Steel companies face cyclical demand, potentially leading to periods of lower stock valuation.
Always research thoroughly and consult a financial advisor before investing.