Top 5 Small Cap Stocks with Low PEG and High OPM to Keep on Your Radar
Synopsis: Low PEG ratio and high operating margins in small-cap stocks may signify both good value and efficiency, which makes these companies worth watching for those who search for growth opportunities.
Identifying small cap stocks with a good valuation as well as profitability can be a difficult task. A low PEG ratio implies that the stock of a company may have a reasonable growth rate, while an OPM ratio implies that the company has high profitability due to strong operations. Such companies are definitely worth considering for their efficiency and growth potential. Below, you will find five such companies.
Indosolar Ltd
Indosolar Ltd is an Indian solar energy company engaged in manufacturing high-efficiency solar photovoltaic (PV) cells. The company caters to the renewable energy sector by supplying solar cells for module manufacturers. Following its acquisition by the Waaree Group through the insolvency process, Indosolar has been focusing on reviving operations and expanding manufacturing capacity.
With the market capitalization of Rs. 1,364 Crores, the shares of Indosolar Ltd were trading at around Rs. 328 per share which is 54 percent discount from its 52 week high of Rs. 725 per share. The stock is trading at a PEG of 0.04 and has delivered operating profit margin of 71 percent
Deep Industries Ltd:
Deep Industries Limited is an energy services firm that mainly offers its services to the oil and gas industry. Services offered by the firm include air and gas compression, drilling and workover, gas dehydration, and project management services. The firm deals with public and private energy companies in India.
With the market capitalization of Rs. 4083 Crores, the shares of Deep Industries Ltd were trading at around Rs. 638 per share which is 4 percent discount from its 52 week high of Rs.662 per share. The stock is trading at a PEG of 0.16 and has delivered operating profit margin of 39 percent
Cartrade Tech Ltd:
CarTrade Tech Ltd is a web-based auto marketplace where buyers, sellers, dealers, original equipment manufacturers (OEMs), and financial organizations can come together in the automotive industry. CarTrade Tech Ltd runs online marketplaces for both new and used cars, auction services, inspection services, and financing services through various platforms.
With the market capitalization of Rs. 13,425 Crores, the shares of Cartrade Tech Ltd were trading at around Rs. 2,778 per share which is 15 percent discount from its 52 week high of Rs.3291 per share. The stock is trading at a PEG of 0.63 and has delivered operating profit margin of 33 percent
Borosil Renewables Ltd:
Borosil Renewables Ltd is a leading producer of solar glass for use in photovoltaic modules in India. Borosil Renewables Ltd provides advanced glass products to both local and overseas solar module producers. The firm emphasizes increasing production capability, improving product quality, and satisfying increased demands for solar power solutions.
With the market capitalization of Rs. 7780 Crores, the shares of Borosil Renewables Ltd were trading at around Rs. 548 per share which is 23 percent discount from its 52 week high of Rs.721 per share. The stock is trading at a PEG of 0.32 and has delivered operating profit margin of 32 percent
Sarda Energy & Minerals Ltd:
Sarda Energy & Minerals Ltd is a resource and metals corporation that deals with the production of steel, ferro alloys, iron ore, electricity production, and coal and pellet mining. It has a number of manufacturing plants and captive sources, which help in increasing efficiency.
With the market capitalization of Rs. 17,529 Crores, the shares of Sarda Energy & Minerals Ltd were trading at around Rs. 497 per share which is 22 percent discount from its 52 week high of Rs.640 per share. The stock is trading at a PEG of 0.70 and has delivered operating profit margin of 41 percent
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