Top Five Companies Trading At PE Multiple Of More Than 100x

In our last Slide Show we had focused on companies trading at a PE multiple of less than 10x. In the present edition we have covered companies that have been trading at a PE multiple of more than 100x. In this article we have looked at the top five companies with a PE multiple of more than 100x on a trailing 12-month basis. Here a small methodology has been used: 1) We have considered companies that have posted profit in the last four quarters and 2) We have considered companies that have an equity capital of more than Rs 20 crore. All the bottomline figures are on a standalone basis.

Source: Dion Insight

Bajaj Finserv: Based in Pune, Bajaj Finserv provides various financial products and services in India. The company has a prominent presence in the sphere of consumer financing and offers products ranging from consumer durable, personal, small business and construction equipment loans, two and three-wheeler financing, loans against property and shares and insurance services for individuals or institutions. Further, it offers financial products and advises individual and institutional clients on financial and wealth management. The company also operates 138 wind mills in Maharashtra with a total installed capacity of 65.2 MW. The company has topped our list following the methodology we have followed. The stock discounts its trailing 12-month earnings by 163.39x. It has a market capitalisation of Rs 12,153.12 crore and the aggregate bottomline for the last four quarters stands at Rs 74.38 crore. If we look at the year-to-date performance we find that the scrip has given a return of 92.59 per cent.

United Breweries: Promoted by Dr Vijay Mallya, United Breweries is engaged in the manufacture, purchase and sale of beer, including the licensing of brands in India. The company was founded in 1915 and is based in Bengaluru. It provides beers under the Kingfisher Brand. The company also has an alliance with Heineken N.V. It is a part of the UB Group that has interest in sectors like beverages, aviation, electrical and chemicals. United Breweries is India’s largest producer of beer with a market share of around 48 per cent by volume. The company is placed second in our list. The stock discounts its trailing 12-month earnings by 117.39x. The company has a market capitalisation of Rs 18,051.91 crore and the aggregate bottomline for the last four quarters stands at Rs 153.78 crore. If we look at the year-to-date performance we find that the scrip has given a return of 75.97 per cent.

Den Networks: Den Networks is basically engaged in the business of cable television distribution and promotion of television (TV) channels and related services in India. The company is involved in the distribution of television channels through analog and digital cable distribution networks and also provides internet services. It offers approximately 180 channels through its digital cable television service. The company’s interactive applications portfolio comprises multi-genre digital music service. It offers its cable television services to approximately 11 million households, which include 6,00,000 digital cable subscribers in the states of Delhi, Uttar Pradesh, Rajasthan, Maharashtra, Gujarat, Karnataka, Haryana, Kerala, West Bengal, Jharkhand and Bihar. The stock discounts its trailing 12-month earnings by 114.29x. The company has a market capitalisation of Rs 2,117.85 crore and the aggregate bottomline for the last four quarters stands at Rs 18.53 crore. If we look at the year-to-date performance we find that the scrip has given a whopping return of 228.21 per cent.

DPSC: DPSC is engaged in the generation, transmission and distribution of electricity in West Bengal. It owns and operates generating stations at Chinakuri with a generating capacity of 30 megawatts and at Disherdarh with a generating capacity of 12.2 megawatts. The company also owns two networks of 11 KV, including one covering Disherdarh and Chinakuri areas. It serves the power requirements of collieries of West Bengal, state electricity board, distributing licensees, hospitals, nursing homes, pumping stations, railways and refractory and glass works, as well as television and radio stations. The company is placed fourth in our list. The stock discounts its trailing 12-month earnings by 110.66x. The company has a market capitalisation of Rs 1,290.29 crore and the aggregate bottomline for the last four quarters stands at Rs 11.66 crore. If we look at the year-to-date performance we find that the scrip has given a negative return of 19.21 per cent.

L&T Finance Holdings: A subsidiary of Larsen & Toubro, L&T Finance Holdings operates in four business groups viz. infrastructure finance, retail finance, corporate finance and investment management. This group also provides project finance and corporate loans, equity investments and financial advisory services. It serves corporate customers consisting of small and medium enterprises and multinational corporations. The investment management group focuses on the management, administration and distribution of L&T Mutual Fund. The company was formerly known as L&T Capital Holdings and changed its name to L&T Finance Holdings in September 2010.  The stock discounts its trailing 12-month earnings by 105.72x. The market capitalisation of the company stands at Rs 9,122.52 crore and the bottomline for the last four quarters aggregates to Rs 86.29 crore. On a year-to-date basis the scrip has given a return of 23.86 per cent.