Formula of High Growth Low Valuation
The most successful formula for investing in any stock is High Growth Low Valuation. If a stock is trading below its real value and shows a growth as well, then the expectation of high returns for investors increases. Today, we are telling you about stocks that are the cheapest stock of companies that grow high in the eyes of the broking house.
Read those assured conditions
ICICI Direct has included companies that meet the three conditions in the cheapest stocks with higher growth. This list includes-
- Companies above the market capital of Rs.1000 crores, whose profits are more than 20% compared to their sales.
- At the same time, the price to earning ratio is less than 20 and the price to sell ratio is less than 1.5. According to market experts, if a company’s profit is more than 20 percent of its sales, i.e. the company is raising its margins on good sales. At the same time, it is generally assumed that Profit Earning ratio is less than 20, then there is a possibility of increase in stocks.
- The price-to-sales ratio is below 1.5 per cent, but it is believed that the stock is below the performance of the company.
Companies with good Profits, PE Ratio and price-to-sales ratio
The list given by ICICI Direct comprises 39 stocks, whose Profits, PE Ratio and price-to-sales ratio are meeting the above conditions. In this included Oil India, Reliance Capital, NMDC, Sonata Software, ONGC, HDIL, GMDC, Siemens, Glenmark Pharma, Aban Offshore, Hindustan Zinc, Infosys, Axis Bank, PTC India Financial, Coal India, Power Grid, Alembic Pharma, Rural Electrification. is. Broking House has issued investment advice in some of these companies. You can do stock market trading on these companies’ stocks.