10 Undervalued Indian stocks with low Price to Sales ratios

Almost 20 years, fund manager and expert on quantitative finance James O'Shaugnessy published his book "What works on Wall Street." In it he argued, that buying stocks with low price to sales, price to book and price to cash flow ratios outperforms a stock index significantly. So let's take a look at some of India's biggest companies selling for low price to sales multiples:

10. Union Bank of India

Market cap: 13866 Rs. Cr.
Price to Sales: 0.47
P/E ratio: 8.1
Dividend yield: 1.48%
Sales growth: 16.8%
Promoter holding: 60%

Union Bank of India chart

9. Hindalco Industries

Market cap: 33821 Rs. Cr.
Price to Sales: 0.42
P/E ratio: 10
Dividend yield: 0.7%
Sales growth: -
Promoter holding: -

Hindalco Industries chart

8. Central Bank of India

Market cap: 10006 Rs. Cr.
Price to Sales: 0.42
P/E ratio: -
Dividend yield: 0%
Sales growth: 11
Promoter holding: 88%

Central Bank of India chart

7. Tata Steel

Market cap: 50500 Rs. Cr.
Price to Sales: 0.34
P/E ratio: 13
Dividend yield: 1.5%
Sales growth: 10%
Promoter holding: 32%

Tata Steel chart

6. Petronet LNG

Market cap: 12540 Rs. Cr.
Price to Sales: 0.33
P/E ratio: 17
Dividend yield: 1.5%
Sales growth: 20%

Petronet LNG chart

5. Indian Oil Corporation

Market cap: 78 153 Rs. Cr.
Price to Sales: 0.17
P/E ratio: 15
Dividend yield: 1.93%
Sales growth: 6%
Promoter holding: 68%

Indian Oil Corporation chart

4. Bharat Petroleum Corporation

Market cap: 39 886Rs. Cr.
Price to Sales: 0.16
P/E ratio: 20
Dividend yield: 2%
Sales growth: -
Promoter holding: 64%

Bharat Petroleum Corporation chart

3. Essar Oil

Market cap: 15 718 Rs. Cr.
Price to Sales: 0.16
P/E ratio: 11
Dividend yield: 0%
Sales growth: 11%
Promoter holding: 90%

Essar Oil chart

2. Mangalore Refinery and Petrochemicals

Market cap: 11 628 Rs. Cr.
Price to Sales: 0.16
P/E ratio: 23
Dividend yield: 0%
Sales growth: 9.3%
Promoter holding: 90%

Mangalore Refinery and Petrochemicals chart

1. Hindustan Petroleum Corporation

Market cap: 13137 Rs. Cr.
Price to Sales: 0.06
P/E ratio: 249
Dividend yield: 2.19%
Sales growth: -
Promoter holding: -

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Hindustan Petroleum Corporation chart