India, Feb. 12 -- The PEG ratio (Price/Earnings-to-Growth) measures a stock's valuation relative to its expected earnings growth. A PEG below 1 suggests potential undervaluation. ROE (Return on Equity) and ROCE (Return on Capital Employed) complement this by showing how efficiently a company generates profits from equity and total capital.

Stocks like NALCO, Torrent, Dixon and other stocks with PEG ratios under 1, combined with strong ROE and ROCE, indicate undervaluation while efficiently utilizing both equity and overall capital. These metrics help investors identify companies that are not only cheap but also financially robust and growth-ready. Here is the list of stocks with strong fundamentals and PEG ratio less than 1

Torrent Powe...