High EPS and Low PE Stocks

High EPS (Earnings Per Share) stocks indicate a company generates substantial profit per share, reflecting strong financial performance. Low PE (Price-to-Earnings) ratio stocks are considered undervalued, as their share price is low relative to earnings. Investors often seek these stocks for potential growth and value investment opportunities.

The table below shows the high eps and low PE stocks based on the highest market capitalisation and 1-year return.

List of Low PE High EPS Stocks

Reliance Industries Ltd

The Market Cap of Reliance Industries Ltd is ₹1,734,241.25 crore, with a monthly return of 1.96% and a yearly return of -10.24%. The stock is 25.54% away from its 52-week high.

Reliance Industries Ltd is a diversified conglomerate with operations spanning across petrochemicals, refining, oil, telecommunications, and retail. The company has a major presence in India and globally, focusing on innovation and sustainable practices to drive growth in multiple sectors, especially in energy and digital technology.

Reliance’s extensive network of businesses includes Jio, a leading telecom operator, and retail stores that cater to a vast consumer base. The company remains committed to enhancing its energy sustainability and leveraging technology to deliver transformative solutions.

Tata Consultancy Services Ltd

The Market Cap of Tata Consultancy Services Ltd is ₹1,477,174.68 crore, with a monthly return of -0.35% and a yearly return of -1.29%. The stock is 12.48% away from its 52-week high.

Tata Consultancy Services Ltd (TCS) is a global leader in IT services and consulting, providing a wide range of services, including software development, business process outsourcing, and digital transformation. The company focuses on delivering innovative solutions to clients across industries, helping businesses enhance operational efficiency.

As one of the most prominent technology services companies, TCS is recognised for its expertise in AI, cloud computing, and data analytics. The company’s deep-rooted client relationships and continuous investment in emerging technologies have positioned it as a leader in the global IT landscape.

HDFC Bank Ltd

The Market Cap of HDFC Bank Ltd is ₹1,334,076.58 crore, with a monthly return of -0.36% and a yearly return of 20.76%. The stock is 7.81% away from its 52-week high.

HDFC Bank Ltd is one of India’s leading private-sector banks, known for its strong retail and corporate banking services. The bank offers an array of products, such as savings accounts, loans, and investment solutions, catering to individuals and businesses.

With a focus on digital innovation and customer service, HDFC Bank continues to expand its reach through mobile banking, online services, and branch networks. Its robust growth strategy ensures it remains a market leader in the banking sector.

ICICI Bank Ltd

The Market Cap of ICICI Bank Ltd is ₹8,98,578.79 crore, with a monthly return of 0.05% and a yearly return of 23.93%. The stock is 7.07% away from its 52-week high.

ICICI Bank Ltd is a prominent private-sector bank in India offering a range of banking and financial services, including retail banking, corporate banking, insurance, and investment services. The bank is known for its robust financial products and commitment to customer satisfaction.

The bank continues to grow by embracing digital banking solutions and expanding its services to underserved segments. ICICI Bank’s wide presence and diversified offerings make it a leader in India’s financial landscape, focused on driving sustainable growth.

Infosys Ltd

The Market Cap of Infosys Ltd is ₹7,93,479.02 crore, with a monthly return of -2.67% and a yearly return of 10.66%. The stock is 4.38% away from its 52-week high.

Infosys Ltd is a global leader in IT services and consulting, offering solutions across cloud computing, data analytics, and digital transformation. The company caters to a diverse client base, helping organisations enhance their operational efficiency through innovative technology services.

Infosys has built a reputation for delivering high-quality, scalable solutions to businesses across the world. With a strong focus on sustainability and employee development, the company continues to lead in the tech services industry and foster innovation for global clients.

State Bank of India

The Market Cap of the State Bank of India is ₹6,71,354.54 crore, with a monthly return of -3.88% and a yearly return of 15.69%. The stock is 21.24% away from its 52-week high.

State Bank of India (SBI) is India’s largest public-sector bank, providing a wide array of financial services such as loans, savings accounts, and investment products. The bank has a strong nationwide presence and caters to both individual and corporate clients.

SBI’s extensive network of branches, ATMs, and digital platforms allows it to serve millions of customers across the country. The bank continues to grow by adopting new technologies and providing customer-centric banking solutions while maintaining a robust market position.

Hindustan Unilever Ltd

The Market Cap of Hindustan Unilever Ltd is ₹5,57,487.52 crore, with a monthly return of -0.94% and a yearly return of -2.21%. The stock is 27.91% away from its 52-week high.

Hindustan Unilever Ltd (HUL) is one of the largest FMCG companies in India, known for its broad portfolio of household products, personal care items, and food and beverages. Brands like Dove, Surf Excel, and Lipton are popular globally.

HUL’s focus on sustainability, innovation, and consumer satisfaction has made it a leader in the FMCG sector. With a vast distribution network, the company continues to expand its presence in the Indian market while maintaining a commitment to environmental responsibility.

ITC Ltd

The Market Cap of ITC Ltd is ₹5,51,925.47 crore, with a monthly return of -1.64% and a yearly return of 8.08%. The stock is 13.35% away from its 52-week high.

ITC Ltd is a diversified FMCG company, best known for its tobacco products but also involved in a variety of sectors including packaged foods, personal care, and hotels. The company’s strong brand portfolio includes products like Aashirvaad, Sunfeast, and Wills Lifestyle.

ITC continues to expand its presence in consumer goods, leveraging sustainability as a key focus in its operations. The company’s foray into non-tobacco sectors demonstrates its adaptability and commitment to long-term growth across multiple industries.

Bajaj Finance Ltd

The Market Cap of Bajaj Finance Ltd is ₹5,26,839.90 crore, with a monthly return of 13.24% and a yearly return of 28.93%. The stock is 1.83% away from its 52-week high.

Bajaj Finance Ltd is a leading player in the consumer finance sector, offering financial services like personal loans, home loans, insurance, and wealth management. The company has established itself as a trusted name in providing consumer financing solutions.

The company continues to innovate by introducing new financial products, leveraging digital platforms to enhance customer experience, and expanding its reach across urban and rural markets. Bajaj Finance’s customer-centric approach drives its growth and market leadership in consumer finance.

Life Insurance Corporation Of India

The Market Cap of Life Insurance Corporation Of India is ₹5,24,215.81 crore, with a monthly return of -7.27% and a yearly return of -19.21%. The stock is 47.44% away from its 52-week high.

Life Insurance Corporation of India (LIC) is the largest life insurance company in India, offering a wide range of policies, including life insurance, health insurance, and pension plans. LIC plays a vital role in providing financial security to millions of families across the country.

LIC has a long-standing reputation for trust and reliability, with its large customer base and extensive distribution network. The company continues to innovate and develop new insurance products to meet the evolving needs of its policyholders, ensuring long-term growth and stability.

What Are Low PE High EPS Stocks In India?

Low PE (Price-to-Earnings) and high EPS (Earnings Per Share) stocks are shares of companies that are relatively undervalued in the market. A low PE ratio suggests that the stock’s price is low compared to its earnings, making it attractive for value investors. High EPS indicates that the company is generating significant profits per share. These stocks are often sought after as they can provide good value, combining solid earnings performance with a lower price relative to those earnings, potentially offering growth potential.

Features Of Low PE and High EPS Stocks

The key features of low PE and high EPS stocks are crucial for investors seeking value and growth. High EPS signifies strong profitability per share, while a low PE ratio often suggests that a stock may be undervalued, providing a potential opportunity for growth.

1. Value Investment
   Low PE stocks are typically seen as undervalued by the market. This can attract value investors looking for stocks that may appreciate over time. They believe that the market will eventually recognize the true worth of these companies.
2. Strong Financial Performance
   High EPS indicates robust earnings, which reflects a company’s ability to generate profit efficiently. Companies with consistently high EPS often exhibit strong operational management, which can lead to sustained growth and increased investor confidence in their future prospects.
3. Attractive for Income Investors
   Investors seeking income might prefer high EPS stocks, as these companies are more likely to distribute dividends. A consistent dividend payout can provide a reliable income stream, making these stocks appealing for those prioritizing yield alongside capital appreciation.
4. Market Resilience
   Stocks with high EPS and low PE often demonstrate resilience during market downturns. Strong earnings can provide a buffer against economic challenges, leading to better performance compared to their peers. This quality can make them a safer investment choice in volatile markets.
5. Growth Potential
   Investors often view low PE stocks as having significant growth potential. As the market recognizes their value, these stocks may experience price increases, offering investors the chance for capital appreciation. This growth dynamic makes them attractive for long-term investment strategies.

High EPS Low PE Indian Stocks Based on 6 Month Return

The table below shows the high EPS and low PE Indian stocks based on 6-month returns.

Stocks With Low PE Ratio And High EPS Based on 5 Year Net Profit Margin

The table below shows the stocks with low PE ratio and high EPS based on a 5-year net profit margin.

Best Low PE High EPS Stocks Based on 1M Return

The table below shows the best low PE and high EPS stocks based on 1-month return.

High Dividend Yield Low PE High EPS Stocks

The table below shows the high dividend yield Low PE and High EPS stocks.

Historical Performance of Low PE High EPS Stocks

The table below shows the historical performance of low PE and high EPS stocks based on 5-year CAGR.

Factors To Consider When Investing In Low PE High EPS Stocks

The factors to consider when investing in low PE and high EPS stocks are company fundamentals. Key metrics like revenue growth, debt levels, and profit margins can provide insights into the sustainability of earnings. A strong fundamental foundation increases the likelihood of long-term success for the stock.

1. Industry Analysis
   Different industries have varying PE ratios and growth prospects. Understanding the industry context helps evaluate whether a low PE is justified. Investing in companies within a stable or growing industry can enhance the chances of capital appreciation and reduced risk.
2. Market Conditions
   Broader market trends and economic conditions significantly impact stock performance. Monitoring market sentiment and economic indicators can help investors gauge whether the timing is right for investment. This awareness can lead to more strategic decisions and improved returns.
3. Competitive Positioning
   Evaluate a company’s position within its industry. Strong competitors may hinder growth potential, while a solid market position can enhance profitability. Companies with unique advantages or a loyal customer base tend to perform better over time, making them more attractive investments.
4. Management Quality
   The effectiveness of a company’s management team plays a vital role in its success. Experienced leaders with a proven track record can navigate challenges and capitalize on opportunities. Assessing management quality can provide insights into the company’s future performance and stability.

How To Invest In the Best Low PE High EPS Stocks?

Investing in low PE (Price-to-Earnings) and high EPS (Earnings Per Share) stocks can be a smart strategy for maximizing returns. Start by researching companies with strong fundamentals and stable earnings growth. Analyze their PE ratios and EPS figures to identify undervalued stocks with potential for expansion. Utilizing platforms like Alice Blue allows you to access valuable market data and insights.  

Impact of Government Policies on Best Low PE High EPS Stocks

Government policies can significantly influence low PE high EPS stocks, impacting their valuation and performance. Policies such as tax incentives for certain industries can enhance profitability, making these stocks more attractive. Conversely, increased regulation or higher taxes may hinder growth, affecting earnings potential and leading to lower stock prices.

Additionally, government spending initiatives can create opportunities for companies within targeted sectors. For instance, infrastructure investments may benefit construction and engineering firms, boosting their EPS and encouraging investor interest.

Furthermore, monetary policies, like interest rate changes, affect overall market conditions. Lower interest rates can lead to increased borrowing and spending, benefiting companies with solid fundamentals, while high rates may suppress growth, impacting their stock valuations.

How Low PE High EPS Stocks Perform in Economic Downturns?

Typically, these stocks are seen as more resilient because their strong earnings can provide some buffer against adverse market conditions. Investors often view them as safer investments when the economy is struggling, as they may be less volatile and offer consistent performance.  

During recessions, the stability of high EPS can attract cautious investors looking for reliable returns. However, the effectiveness of low PE and high EPS stocks can vary based on industry and market dynamics, requiring careful analysis.

Advantages Of Investing In Low PE High EPS Stocks?

The primary advantage of investing in low PE and high EPS stocks lies in their potential for significant returns. These stocks often indicate undervaluation and strong profitability, which can lead to attractive investment opportunities for discerning investors seeking both growth and value.

1. Undervalued Opportunities
   Low PE stocks often represent undervalued companies, making them appealing for value investors. This undervaluation can lead to substantial price appreciation as the market recognizes the true worth of these companies, providing potential for significant capital gains.
2. Strong Earnings Power
   High EPS signifies robust earnings performance, reflecting a company’s ability to generate substantial profits. This strong earnings power can indicate financial stability and operational efficiency, making these stocks attractive for investors seeking reliable performance over time.
3. Potential for Dividends
   Companies with high EPS often distribute dividends, providing investors with a steady income stream. Investing in low PE high EPS stocks allows investors to benefit from both capital appreciation and regular dividend payouts, enhancing total return on investment.
4. Risk Mitigation
   Investing in low PE high EPS stocks can help mitigate risks associated with market volatility. Companies demonstrating strong earnings are often more resilient during economic downturns, making these stocks safer bets compared to high PE counterparts that may be more sensitive to market fluctuations.
5. Attractive Growth Prospects
   Low PE stocks may possess significant growth potential as the market re-evaluates their value. If a company continues to deliver strong earnings, its stock price may increase, providing investors with the opportunity for long-term growth and wealth accumulation.

Risks Of Investing In Low PE High EPS Stocks?

The main risk of investing in low PE and high EPS stocks is the potential for misjudgment regarding their true value. While these stocks may appear attractive, underlying issues could cause their performance to falter, leading to unexpected losses for investors.

1. Market Mispricing
   Low PE stocks can sometimes be undervalued for valid reasons, such as poor management or declining industries. If investors overlook these factors, they may end up investing in companies with bleak prospects, leading to potential financial losses.
2. Earnings Manipulation
   Some companies may artificially inflate their EPS through accounting practices, creating a misleading appearance of profitability. If these earnings figures are not sustainable, investors may face sudden declines in stock value once the truth is revealed.
3. Industry Volatility
   Investing in low PE high EPS stocks within volatile industries can be risky. Economic downturns or shifts in consumer preferences may disproportionately affect these companies, causing stock prices to drop significantly and leading to potential losses for investors.
4. Limited Growth Potential
   While low PE and high EPS stocks may seem appealing, some may lack significant growth opportunities. Companies in mature industries often experience slow growth, which can limit future earnings potential and lead to stagnant stock prices over time.
5. Negative Market Sentiment
   Market perception can greatly influence stock performance, regardless of a company’s fundamentals. If negative sentiment surrounds a low PE high EPS stock, it may struggle to gain traction, causing prices to decline and increasing investment risks.

Low PE High EPS Stocks GDP Contribution

Low PE and high EPS stocks often play a vital role in contributing to a country’s GDP by driving economic growth and employment. Companies with strong earnings and undervalued stock prices can reinvest profits into expansion, leading to increased production and job creation. This dynamic fosters a healthier economy as businesses thrive and consumer confidence grows.

Moreover, these companies tend to be resilient during economic fluctuations, maintaining stable earnings that support overall economic stability. Their ability to weather downturns can contribute to sustained GDP growth, making them critical players in the broader economic landscape.

Who Should Invest In Best Low PE High EPS Stocks?

Investing in the best low PE high EPS stocks can be a strategic choice for various types of investors. These stocks offer the potential for growth and value, making them suitable for those looking to enhance their investment portfolios.

1. Value Investors
   Value investors seek undervalued stocks that offer strong potential for appreciation. Low PE and high EPS stocks align perfectly with this strategy, providing opportunities to buy shares at attractive prices while benefiting from robust earnings.
2. Income Seekers
   Investors looking for reliable income through dividends should consider these stocks. Companies with high EPS often distribute dividends, offering a steady income stream that can supplement returns, making them appealing for income-focused investors.
3. Long-Term Investors
   Long-term investors aiming for capital appreciation will find these stocks attractive. As the market recognizes the true value of low PE high EPS stocks, there is significant potential for price appreciation over time, aligning with long-term investment goals.
4. Risk-Averse Investors
   Risk-averse investors may prefer these stocks due to their stable earnings. Companies with high EPS typically exhibit resilience during market downturns, providing a safer investment option compared to more volatile stocks, thus appealing to those prioritizing capital preservation.
5. Growth-Oriented Investors
   Investors seeking growth opportunities can benefit from low PE high EPS stocks. As the market reassesses these undervalued companies, the potential for substantial growth exists, making them suitable for those focused on long-term wealth accumulation.

Top Low PE High EPS Stocks In India – FAQs

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.