Fundamentally Strong Stocks Trading at PE of Less than 5

Stocks With PE Less then Five:

The recent stock market carnage has spared not even fundamentally strong stocks. Thus, some very good stocks are trading at a PE of less then 5. It's true that forward PE always is a better indicator of valuations. But these stocks should not have very significant decline in earnings. So current low PE makes then attractive bets.

1)Financial Technologies (India) Ltd - PE ratio 3.22

2)Ruchi Soya Industries Ltd - PE ratio 3.98

3)Jindal Saw Ltd - PE ratio 2.23

4)Hindustan Zinc Ltd - PE ratio 3.48

5)Sterlite Technologies Ltd - PE ratio 3.81



Attractive Stocks in the Agriculture Sector:


This is one sector which will do very well the next time the markets make a upmove. That might be sometime away but slow accumulation on these stocks can be considered.

1)Jain Irrigation Systems Ltd

2)Kaveri Seed Company Ltd

3)Karuturi Global Ltd



Attractive Stocks in the Water Sector:

Two stocks which might be big companies of the future in the water related sector in my opinion are:

1)Subhash Projects & Marketing Ltd

2)Mount Everest Mineral Water Ltd

Should You buy in big numbers now:
If anyone does plan to buy any stock for long term also then he/she should buy only in small numbers. No one can say for sure that the stock markets have bottomed out or are even close to that. Yes some valuations are very attractive but it might get more attractive. So I would suggest to invest only 10-15% of the money allocated towards investment purpose in stocks now. For now capital preservation is the top priority.