4 Small Cap Debt Free Companies With A P/E Of Upto 144.65

There are four small-cap debt-free companies with price-to-earnings ratios as high as nearly 144.65, which we have identified using a screener.

The price-to-earnings ratio or P/E ratio is used to determine the stock valuation. A P/E ratio can reveal how a stock's value compares to its industry group or the index like BSE or NSE. It also helps to determine the market value of a stock as compared to the company's earnings.

The P/E shows what the market is ready to pay today for a stock based on its past or potential earnings. A high P/E ratio indicates that a stock's price is high relative to earnings and is overvalued. Likewise, a low P/E ratio points indicate that the current stock price is low relative to earnings.

Additionally, a high P/E ratio of a company may mean that it is expected that revenue would grow faster in the future. Based on it speculation is done, leading to a spurt in its current stock prices.

Here are 4 small-cap companies that are debt free and have high P/E

1. Shanthi Gears
Shanthi Gears Ltd is operating in the Auto Ancillaries sector incorporated in the year 1972. It is in the business of design, manufacture, supply, and servicing of gears and gearboxes. The company's product portfolio encompasses a range of customized gearboxes, loose gears, worm gearboxes, and helical gearboxes. It has a market capitalisation of Rs 2,866.49 crore. The latest stock price is Rs 373.65 per share and the P/E multiple is at 42.77.

2. Wendt India
Wendt India is a leading manufacturer of Super Abrasives, Machining Tools, and Precision Components incorporated in 1980. The company is JV between 3M (via Wendt GmbH) and Carborundum Universal (Murugappa Group). Both companies hold 37.5% shares in the company. The company is JV between 3M (via Wendt GmbH) and Carborundum Universal (Murugappa Group). Both companies hold 37.5% shares in the company. It has a market capitalisation of Rs 1,835.67 crore and its stock is trading at Rs 9178.35 with a P/E multiple of 46.02.

3. Kennametal India Ltd
Kennametal India Ltd was incorporated in 1938, it is a 75% subsidiary of Kennametal Inc. It manufactures carbide tools and special-purpose machines for automotive, defense, railways, infrastructure, and General engineering segments. The manufacturing unit is in Bengaluru. It has a market capitalisation of Rs 5,448.19 crore and its stock is trading at Rs 2478.90 with a P/E multiple of 56.28.

4. Reliance Industrial Infrastructure Ltd
Reliance Industrial Infrastructure Ltd was incorporated in the year 1929 and is mainly engaged in the business of setting up/operating industrial infrastructure. It is a Reliance Group Company (RIL holdings 45.43%). The company has operations in the Mumbai and the Rasayani regions of Maharashtra, Surat, and Jamnagar belts of Gujarat. It has a market capitalisation of Rs 1,328.05 crore. The latest stock price of the company is Rs 879.50 per share and the P/E is at 144.65.

Disclaimer
This article is for information purposes only. The article should be treated as informational and not an advisory to invest. Neither the author, nor Greynium Information Technologies Pvt Ltd should be held responsible for decisions based on this article.