Kolkata: Stock which have the possibility of generating high returns but are available at a relatively cheap price is the topic of eternal quest by investors. Here are three PSU stocks that are trading below the industry average P/E ratio. The signal is clear: investors can hope to acquire them relatively cheaply. Let’s take a closer look at these stocks.
Hindustan Aeronautics Limited (HAL)
HAL was set up in 1940. It is one of the leading aerospace and defense equipment manufacturers. This company has 20 production facilities and 11 R&D units. The stock has a market cap of about Rs 3,25,754 crore. Around 12 noon it was trading at Rs 4,844.10, down Rs 26.30 (or 0.54%). The stock has generated returns of 309% in three years and 1078% in five years. HAL clocked a revenue of Rs 4,819 crore in Q1FY26 up from Rs 4,348 crore in the same quarter a year ago. But PAT declined from Rs 1,437 crore to Rs 1,384 crore in the two quarters.
The P/E ratio of the HAL stock is 38.13 against an industry average of 70.44. It has generated ROE of 26% and ROCE of 33.9%.
Oil and Natural Gas Corporation (ONGC)
ONGC is the country’s principal crude oil and gas producer and a Maharatna company. While Indian imports more than 85% of its crude requirements, ONGC generates more than 75% of the domestic production. ONGC’s market cap is Rs 3,06,519 crore. The company’s shares have produced returns of 79% in the past three years and 249% over five years. On Monday, ONGC stock was trading at Rs 244.90, up Rs 1.24 (or 0.51%).
ONGC’s total income in Q1FY26 was at Rs 1,63,108 crore, up from Rs 1,68,968 crore in the same quarter a year ago. Net profit, too, rose from Rs 9,776 crore to Rs 11,554 crore. The P/E ratio of ONGC stock is 8.29 contrasted against an industry average of 11.50. The ROE of ONGC was recorded at 10% and ROCE at 12%.
NMDC (National Mineral Development Corporation)
A Navratna company, NMDC is the chief iron ore producer in India. Its market cap is Rs 7,829 crore. NMDC stock has generated returns of 76% in three years and 174% in five years.
The total income of NMDC in Q1FY26 was recorded at Rs 6,739 crore, up from Rs 5,414 crore in the same period a year ago. previous year. However, the net profit figure was almost unchanged at Rs 1,968 crore. The stock was trading at Rs 75.87, down Rs 1.23 (or 1.60%) on Monday afternoon. Its ROE was 23% and ROCE at 29%. The P/E ratio of NMDC stock was 10.08, much lower than the industry average of 21.87.
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