List of companies with low P/E and high ROE

For several reasons, a company with low P/E and High ROE can be a desirable investment avenue.

P/E stands for (Price to Earning) ratio. It compares the company’s current price to its earning per share. A low P/E indicates that the company’s stock is undervalued with its earnings. As a result, investors can buy the company’s stock for less money than it could make in the future. Due to the possibility of a bigger return, this may make investment more attractive.  

ROE stands for (Return on Equity). A high ROE is a measure of a company’s profitability with shareholder equity. This shows that the company is making more money for every Rupee that its shareholders have invested in equity. Businesses with high ROE are frequently regarded as being effective at generating profits from their equity.  

As a result, a company with a low P/E ratio and a high ROE may represent an attractive investment opportunity because its earnings are cheap in comparison to its profitability. A high ROE and low P/E suggest that the company is generating strong profits while its stock is undervalued. This could present a buying opportunity for investors looking for undervalued stocks with growth potential.    

The present market downturn should be viewed as a chance to purchase high-quality companies at a discount.  

Here is the list of some companies having low P/E and high ROE and CMP