Dozen Nifty50 stocks trade below 20x price/earning

A dozen stocks, mostly banking and energy stocks, in the Nifty50 index are trading below a P/E of 20, providing an opportunity to investors despite broader concerns related to expensive valuations in the Indian market.

- ARSHAD KHAN @ New Delhi

As of Monday's closing, the benchmark Nifty50 index had a P/E of 20, a sharp decline from a P/E of 24.4 on September 27, 2024. Nifty has a one-year median P/E of 22.5, which is in line with the five-year average P/E of 22.6.

Nifty50 stocks trading below a P/E of 20 have a strong buy call from analysts.

The Price-to-Earnings (P/E) ratio measures a company's stock price relative to its earnings per share. It helps investors assess valuation, growth potential, and compare stocks within industries.