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Looking for low market cap to sales ratio stocks

mahesh's picture
Submitted by mahesh on January 16, 2010 - 04:37

Market cap to sales can be one of the good way to find some undervalued stocks. While earning is more critical factor, some companies put more emphasis on growth instead of margins and profits  that brings more revenue but less profits. It doesn't mean all these are great stocks ..

Traditionally companies in auto sector tends to have high sales because cars are big ticket items . or metal companies. But uptrend in market have crushed those ratios.

Here is a screen to look at , I am looking at companies with minimum market cap of 1000 cr to eliminate microcaps. Looking for at least 2% dividend and low market cap to sales ratio.

Most interesting findings are  HCL infosystems and Tata Chemical. Fertilizer stocks tend to trade at low p/e and p/s ratio historically . They don't have much room for capital appreciation.


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