Low PE, High Growth Stocks: Stocks Trading Below 15 PE with 20% Sales CAGR

Over the years, investors have been choosing sides, either buying a cheap stock or buying fast-growing ones. Value investors look for stocks which are trading at low price-to-earnings (PE) multiples as it offers margin of safety, on other hand, investors from growth camp are willing to pay a premium for companies delivering rapid revenue expansion.

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But what if a stock offers both? This is where this blog will help you. In this blog we shall cover stocks which have a combination of both low PE and rapid revenue growth. The parameters used for identifying such stocks is: PE below 15x and sales growth of over 20% CAGR for 5-year period. Ideally, such stocks sit at the sweet spot where valuation comforts meet business momentum.

Now let’s understand why PE of 15x combined with 20% sales CAGR over 5 years is a good combination?

Low PE and Sales Growth Combination; Why does it Matters?

The price-to-earnings (PE) ratio tells investors how much they are paying for every rupee of a company’s profit. A PE below 15, offers margin of safety. It limits downside risk and offers valuation comfort, especially if growth sustains. Hence, sales growth comes into picture.

Sales growth is one of the key indicators of business demand. A company that has grown revenues at over 20% CAGR for five years has demonstrated:

1. Consistent market demand for its products or services
2. Ability to scale operations across cycles
3. Execution capability despite macro volatility

Unlike profit growth, which can be enhanced temporarily through cost cuts or accounting adjustments, revenue growth reflects real business development. When sales compound at this pace, earnings usually follow, provided margins are protected.

This is why combining low PE stock with strong sales growth is powerful.

Here’s is the overview of the stocks which meets the criteria of Low PE and sales growth of over 20% CAGR in 5-years

Indus Towers

Indus Towers Limited is India’s leading provider of passive telecom infrastructure, and it deploys, owns and manages telecom towers and communication structures, for various mobile operators. The Company’s portfolio of 2,51,773 telecom towers makes it one of the largest tower infrastructure providers in the country with presence in all 22 telecom circles. Indus Towers caters to all wireless telecommunication service providers in India. The Company has been the industry pioneer in adopting green energy initiatives for its operations.

NCC

NCC Limited is a leading infrastructure and construction enterprise headquartered in Hyderabad, India. Established in 1978, the company has built a strong legacy of more than four decades in the Indian infrastructure sector, with a diverse portfolio spanning multiple verticals such as Buildings, Transportation, Water and Environment, Irrigation, Mining, Railways and Electrical (T&D).

Nazara Technologies

Nazara Technologies is India’s only publicly listed gaming company. Its key businesses include Curve Games, Kiddopia, Animal Jam, Fusebox Games (Love Island, Big Brother), World Cricket Championship and Sportskeeda, along with offline gaming businesses such as Funky Monkeys and Smaash Entertainment. Nazara also operates Datawrkz, a digital ad tech business. With presence in India, North America, and other global markets, Nazara is building a global gaming platform with strong IP, publishing, and operating capabilities.

Ganesh Housing

Ganesh Housing Ltd, a renowned real estate developer in Ahmedabad, specialises in the business of real estate development in residential, commercial segment and infrastructure projects. With completed projects like Maple Tree , Maple Trade Centre, Magnet Corporate Park, Malabar County I & II, Sundervan Epitome, Maple County I & II, GCP Business Center, Malabar County III, Malabar Exotica and involvement in mega projects like Million Minds Tech City (first IGBC platinum IT building in Ahmedabad), the company continues to contribute significantly to the real estate sector in Ahmedabad.

Electrosteel Castings

Electrosteel Castings Limited (ECL) is the pioneer in manufacturing Ductile Iron Pipes and Fittings in India and South Asia. ECL is one of the leaders in Ductile Iron Pipes and Fittings in India. The Company is amongst the top manufacturers of the product in the World and exports to 110+ countries across 5 continents. ECL has its presence in the most discerning markets in Western Europe, UK, USA, Middle east and Gulf, Asia and Africa.

Route Mobile

Established in 2004, Route Mobile (RML) is a cloud communications platform service provider catering to enterprises, over-the-top (OTT) players, and mobile network operators (MNO). RML's portfolio comprises solutions in messaging, voice, email, SMS filtering, analytics, and monetization. RML has a diverse enterprise client base across various industries, including social media companies, banks and financial institutions, e-commerce entities, and travel aggregators.

Share India Securities

Share India Securities Limited has steadily evolved into a prominent financial services conglomerate, primarily focusing on algo-trading solutions. While initially serving High Networth Individuals (HNIs), Share India is now committed to expanding its services to cater to the burgeoning retail investor market.

Steel Strips Wheels

Steel Strips Wheels Ltd. (SSWL) designs & manufactures automotive steel wheels since 1991. It designs, manufactures, and supplies Steel Wheel Rims and Alloy Wheels for a wide range of domestic and global automobile makers. The product range comprises Steel wheels for Two and Three Wheelers, Passenger cars, Multi utility vehicles, Tractors, Trucks & OTR Vehicles.

Alembic Limited

Alembic Limited was incorporated on July 30, 1907. The company was promoted by industrialist, Shri Bhailalbhai Amin, and scientists, Prof. TK Gajjar and Shri Kotibhaskar. The company has been a pioneer in manufacturing Penicillin-G (Pen-G) through the fermentation process. To unlock shareholder value and help insulate the core pharmaceutical operations from severe volatility and uncertainty of the Pen-G business, the company’s board of directors approved the demerger of its core pharmaceutical business (formulations) into a wholly-owned subsidiary, APL, with effect from April 01, 2010. Following the demerger, both the companies were listed on the Bombay Stock Exchange and the National Stock Exchange.

Rashi Peripherals

Incorporated in 1989, Rashi Peripherals operates across key verticals: Personal Computing, Enterprises and Cloud Solutions (PES) and Lifestyle and IT Essentials (LIT). The company has presence in 708 locations and supported by 52 branches, 50 service centres, and 68 warehouses (as of March 31, 2025), i bridge the digital divide between urban and rural India. It's extensive network ensures seamless delivery of cutting-edge technology to a broad and diverse audience.

Conclusion

Stocks trading below 15 PE with sustained 20% sales growth are often mispriced stories in transition; either moving from a cyclical to a structural phase or operating under temporary market pessimism.

For patient investors, such stocks can deliver valuation re-rating plus earnings growth, a combination that drives outsized returns over the long term.

The real edge lies not in spotting the screen, but in understanding why the market is wrong and whether the business fundamentals justify that belief.