Low PE Stocks under Rs 200 – Financials And More

Low PE Stocks under Rs 200: The Indian markets are having their best time this year, with both Nifty & Sensex touching their all-time highs in January. With the markets trading at such high valuations, it’s truly a hard time for value investors to enter the field & bet on their favourite pick.

Keeping this in mind, we set out to find some hidden gems with great fundamentals and growth. We also made sure that these gems have the lowest Price-to-earnings (PE) as possible. If you are wondering what PE might be, it is simply the price multiple an investor is willing to pay for its respective earnings per share. 

Also, we wanted to help investors with any small sum to find value in these Companies. Hence, we looked out for stocks with low PE stocks also trading at an affordable price of just Rs. 200.

Low PE Stocks under Rs 200 – Stock List

Now lets take a good look at these low PE stocks. Most of the stocks are from famous Companies, so you might be familiar. Let us learn more about what the Company does and then take a look at how its revenue & profits scaled in the past year.

Low PE Stocks under Rs 200 #1 – Indian Oil Corporation

Indian Oil Corporation is a Maharatna Company which is the largest refiner in the country & the 2^nd largest player in petrochemicals. IOCL owns 11 refineries with a total capacity of 80.6 Million Metric Tonnes Per Annum (MMTPA) serving 32% of India’s refining demands. The Company also owns one of the largest crude oil pipelines stretching a length of 17,000 km with a capacity of 119.2 MMTPA.

In FY23, the refineries of Indian Oil had a capacity utilization of 103% which led to a throughput of over 72 MMT. With a vision for research & development, IOCL collaborates with multiple Companies such as Ashok Leyland, BARC, L&T, and SAIL. As of FY23, the Company has over 1554 patents filed for products like lubes, catalysts, additives, polymers, hydrogen, Biofuels, and other petrochemicals. 

The Company’s current ongoing projects include the expansion of the Panipat Refinery from 15 MMTPA to 25 MMTPA for Rs. 34,627 Cr. Expansion of Gujarat Refinery from 13.7 MMPTA to 18 MMTPA for Rs. 18,936 Cr. The current ongoing projects of IOCL are worth an estimated Rs. 1.1 Lakh Crore, with Capex for FY24 at an approximate of Rs. 26,327 Cr.

During the year, IOCL revenue from operations scaled by 19%, from Rs. 7.36 Lakh Cr in FY22 to Rs. 9.51 Lakh Cr in FY23. However, due to the steep rise in crude oil prices, IOCL’s profits dipped by 55%, from Rs. 25,726 Cr in FY22 to Rs. 11,704 Cr in FY23. The Company currently trades at a PE of just 4.32x, which is below its industry PE of 9.83x.

Low PE Stocks under Rs 200 #2 – Satia Industries Limited

Satia Industries Limited (SIL) is one of India’s largest paper manufacturers using wood and Agro-based Raw Materials such as Wood Chips, Veneer Waste, Wheat Straw, and Sarkanda. The company commenced its operations in 1984 as M/s. Satia Paper Mills Ltd. by Dr Ajay Satia and later changed its name to Satia Industries Ltd. 

The Company has a fully integrated manufacturing facility, which includes 4 Paper Machines and pulping Machinery. It also has a Chemical Recovery plant and a Power Generation plant that meets 100% of its power requirement. This form of backward integration gives a superior advantage in terms of cost efficiency and environmental compliance, ultimately leading to good margins. 

Further, SIL has 540 Acres of eucalyptus plantations, developed per Karnal Technology, that consume total treated water discharge and will serve all the future wood raw material requirements. The company’s product mix includes Colored Paper, Ledger Paper, Cartridge Paper, duplicating paper, and Bond Paper with and without watermarks from the GSM range of 42 to 200 GSM. 

Satia Industries Ltd. also has the facility to make Chromo Paper. SIL has a strong Pan India distribution network with 70+ dealers. During the year, the Company reported a gross revenue of Rs. 1884 Cr in FY23, which increased by 111% from Rs. 891 Cr in FY22.

Net Profit increased by 91% from Rs. 100 Cr in FY22 to Rs. 192 Cr in FY23. The Company currently trades at a PE of just 5.58x, which is below its industry PE of 7.49x.

Low PE Stocks under Rs 200 #3 –  Kuantum Papers

Kuantum Papers is yet another eco-conscious organization committed to the manufacturing and supplying of premium quality paper made from Agro and wood materials. It was founded in 1980 in the village of Saila Khurd, located in Punjab, India. Kuantum mill was established to harness the untapped potential of Agro vegetation such as Sarkanda Grass, Kahi Grass, and agro-residues like Wheat straw and Bagasse.

Traditionally, these residues were burnt in the field, but now they have been repurposed to manufacture premium quality paper. The Company has a fully integrated manufacturing facility that spans over 259 acres & is located at the foothills of the Shivalik Range. In 2008, Kuantum expanded into a wood-based pulp mill, exclusively utilizing wood waste from the furniture industry.

Evolving from our initial production of 30 Tonne Per Day (TPD), Kuantum has grown to an impressive 450 TPD, producing over 150,000 MT of paper annually. The Company has also added a new Chemical Recovery Plant, taking the total recovery capacity to 700 TPD ensuring efficient resource utilization. 

In recent years, Kuantum expanded its global footprint to serve customers in over 30 countries, making it a trusted name in the international market. Its distinguished clientele includes renowned names such as Walmart, McGraw Hill, Kokuyo, Thomson, Lotus Global, Pearson, Oxford University Press, Macmillan, and others.

During the year, Kuantum reported a Gross revenue of Rs. 1310 Cr in FY23 which increased by 58% from Rs. 830 Cr in FY22. Net Profits of the Company skyrocketed to increase by 840%, from Rs. 13 Cr in FY22 to Rs. 136 Cr in FY23. The bumper gains came as a significant drop in materials cost. The Company currently trades at a PE of just 6.77x, which is below its industry PE of 7.49x.

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Low PE Stocks under Rs 200 #4 – South Indian Bank

South Indian Bank (SIB) is a private-sector bank headquartered in Thrissur, Kerala. It was The first among the private sector banks in Kerala to become a scheduled bank in 1946 under the RBI Act. Also, the first among the private sector banks in Kerala to open an “Overseas Branch” to cater exclusively to the export and import business in June 1993.

As of March 31, 2023, the Bank had a network of 942 banking outlets (941 Branches & 1 Service Branch) and 1175 ATMs and 134 CRMs spanning 26 States and 4 Union Territories). During FY23, the bank’s deposits increased from Rs. 89,142 Cr in FY22 to Rs. 91,651 Cr in FY23, growing by just 3%. Advances increased from Rs. 59,993 Cr to Rs. 69,804 Cr, growing by 16%.  

Net Interest Income increased by 34%, growing from Rs. 2240 Cr in FY22 to Rs. 3012 Cr in FY23. Net Profit for the year increased by 139x, from Rs. 49 Cr in FY22 to Rs. 737 Cr in FY23. 

The huge jump in profits comes as a result of an increase in Net Interest margins and lower Provisions & contingencies.  Net Interest margins rose from 2.62% to 3.3% during the respective time.  The bank currently trades at a PE of just 5.78x, which is below its industry PE of 12.2x.

Low PE Stocks under Rs 200 #5 –  Union Bank of India

Union Bank of India is one of the leading public-sector banks in the country, with 76.99% of the Bank’s total paid-up capital being held by the Government. Headquartered in Mumbai, the Bank was established way back in 1919. On 1^st April 2020, Andhra Bank & Corporation Bank was amalgamated into Union Bank as part of the Government’s objective to consolidate India’s Public sector banking network.

Today, the bank has a network of 8450+ domestic branches, 9800+ ATMs, 76,300+ employees, and 18,900+ BC Points. It also has 2 branches overseas at Dubai International Financial Centre (UAE) & Sydney (Australia); and 1 banking subsidiary in London (UK). 1 banking joint venture in Malaysia; 4 para-banking subsidiaries (domestic); 2 joint ventures and 1 associate – Chaitanya Godavari Gramin Bank. 

Union Bank of India is the first large public sector bank in the country to have implemented a 100% core banking solution. It is a system where the bank offers a complete suite of end-to-end services from accepting deposits, loans, payments, and all other regulatory compliances.

UBI’s Net interest Margins increased by 18%, from Rs. 28,051 Cr in FY22 to Rs. 33,130 Cr in FY23. Net Profits increased by a strong 62%, from Rs. 5265 Cr in FY22 to Rs. 8511 Cr in FY23. This was due to an increase in Profits from Associates as well as lower growth in provisions as compared to the previous year. The bank currently trades at a PE of just 7.9x, which is below its industry PE of 9.47x.

List of 10 other Low PE Stocks under Rs 200

The list below puts together other 10 Low PE Stocks under Rs 200.

Conclusion

In conclusion, we believe that the paper industry is very undervalued right with almost every stock trading below 10 Price to Earning. A few reasons could be rising input costs along with the market perception of no growth in the paper industry due to digitalization. Nevertheless, the industry reported really strong results with every Company doubling its profits. 

Our list also talks about two banks, that have been beaten down by the market due to their sky-high Non-Performing Assets. These banks were able to perform better as the rate of provisions provided for bad loans decreased. 

So that’s it from us on this topic. We would like to hear what you think about these Companies. Do they have any potential according to you? Is the market valuing them rightly? Let us know in the comments below.

Written by Nasir Hussain

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