8 Small-Cap Stocks With PEG and Debt-to-Equity Ratios Below 1 to Keep on Your Radar
Small-cap stocks with a PEG ratio and Debt-to-Equity (D/E) ratio of less than 1 may indicate relatively attractive valuations and manageable debt levels. These companies, operating across different sectors, could offer a combination of earnings growth potential and financial stability.
Investors often use a PEG ratio below 1 to identify companies whose earnings growth may be undervalued by the market, while a lower D/E ratio indicates limited financial leverage and a relatively healthier balance sheet. Nevertheless, in addition to the above ratios, there are other factors that investors should look into.
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Websol Energy System Ltd
Websol Energy System Ltd is an Indian company engaged in manufacturing solar photovoltaic (PV) cells and modules. Its product portfolio includes high-efficiency Mono-PERC and bifacial solar cells, along with solar PV modules, catering to utility-scale, commercial and industrial solar installations and renewable energy applications.
With a market capitalisation of Rs. 3,108 crore, the company demonstrates strong financial performance, supported by a PEG ratio of 0.06, ROCE of 63.2 percent, and ROE of 66.9 percent. Additionally, its low debt-to-equity ratio of 0.02 indicates minimal debt and a strong balance sheet.
HBL Engineering Ltd
HBL Engineering Ltd is an Indian engineering and technology company engaged in manufacturing industrial batteries, railway electronics and defence-related products. Its business operations include specialised batteries for industrial and defence applications, railway signalling systems, electronic safety solutions, electric drivetrains and ammunition-related electronic products, serving defence, railways and industrial sectors.
With a market capitalisation of Rs. 22,165 crore, the company demonstrates strong financial performance, supported by a PEG ratio of 0.37, ROCE of 59.3 percent, and ROE of 45.3 percent. Additionally, its low debt-to-equity ratio of 0.02 indicates minimal debt and a strong balance sheet.
Kanohar Electricals Ltd
Kanohar Electricals Ltd is an Indian engineering company specialising in manufacturing power transformers, shunt reactors and gas-insulated switchgear (GIS). It also undertakes EPC projects involving substations and transmission lines. Its products and services cater to power transmission, distribution, railway electrification, renewable energy and industrial infrastructure sectors.
With a market capitalisation of Rs. 8,423 crore, the company demonstrates strong financial performance, supported by a PEG ratio of 0.62, ROCE of 54.3 percent, and ROE of 42.2 percent. Additionally, its low debt-to-equity ratio of 0.04 indicates minimal debt and a strong balance sheet.
Emmvee Photovoltaic Power Ltd
Emmvee Photovoltaic Power Ltd is an Indian solar energy company primarily engaged in manufacturing photovoltaic (PV) modules for large-scale solar projects. The company also provides engineering, procurement, and construction (EPC) services for solar installations across India and Europe, while offering domestic content requirement (DCR) modules for the Indian market.
With a market capitalisation of Rs. 18,607 crore, the company demonstrates strong financial performance, supported by a PEG ratio of 0.03, ROCE of 44.6 percent, and ROE of 50.7 percent. Additionally, its low debt-to-equity ratio of 0.25 indicates minimal debt and a strong balance sheet.
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Gokul Agro Resources Ltd
Gokul Agro Resources Ltd is an Indian agro-processing and FMCG company engaged in manufacturing, processing, and trading edible and non-edible oils, their derivatives, and feed meals. Its product portfolio includes soybean oil, palm oil, sunflower oil, mustard oil, cottonseed oil, groundnut oil, vanaspati and castor oil derivatives, catering to domestic and international markets.
With a market capitalisation of Rs. 6,690 crore, the company demonstrates strong financial performance, supported by a PEG ratio of 0.35, ROCE of 36.7 percent, and ROE of 30.0 percent. Additionally, its low debt-to-equity ratio of 0.36 indicates minimal debt and a strong balance sheet.
Quality Power Electrical Equipments Ltd
Quality Power Electrical Equipments Ltd is an Indian engineering company specialising in high-voltage electrical equipment and power technologies. Its product portfolio includes power transformers, reactors, line traps, instrument transformers, capacitor banks, converters and harmonic filters. It also provides reactive power compensation and grid interconnection solutions for power transmission, distribution and industrial applications.
With a market capitalisation of Rs. 11,650 crore, the company demonstrates strong financial performance, supported by a PEG ratio of 0.92, ROCE of 31.7 percent, and ROE of 25.3 percent. Additionally, its low debt-to-equity ratio of 0.07 indicates minimal debt and a strong balance sheet.
Shaily Engineering Plastics Ltd
Shaily Engineering Plastics Ltd is an Indian manufacturer of precision-engineered plastic components using advanced injection moulding technologies. The company caters to healthcare, medical, consumer, and automotive industries, manufacturing specialised plastic components, medical devices, and drug-delivery systems. It also works with high-performance polymers and supplies products to domestic and international customers.
With a market capitalisation of Rs. 14,405 crore, the company demonstrates strong financial performance, supported by a PEG ratio of 0.95, ROCE of 30.3 percent, and ROE of 28.2 percent. Additionally, its low debt-to-equity ratio of 0.23 indicates minimal debt and a strong balance sheet.
Cemindia Projects Ltd
Cemindia Projects Ltd, formerly known as ITD Cementation India Ltd, is an engineering and construction company engaged in executing complex infrastructure and EPC projects. Its operations include metro rail systems, airports, maritime structures, tunnels, highways, bridges, dams, hydroelectric projects, irrigation, industrial buildings, specialised foundation engineering and water infrastructure.
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With a market capitalisation of Rs. 24,068 crore, the company demonstrates strong financial performance, supported by a PEG ratio of 0.57, ROCE of 32.8 percent, and ROE of 27.8 percent. Additionally, its low debt-to-equity ratio of 0.35 indicates minimal debt and a strong balance sheet.