8 stocks whose sales far outpace their market caps

Siddhartha Bhaiya of Aequitas Asset Management has earned a reputation for his disciplined, value-driven approach in Indian markets. Among his distinctive tools is the use of the price-to-sales (P/S) ratio, specifically focusing on stocks trading below 0.3x sales, as a way to identify fundamentally strong businesses overlooked by conventional valuation methods. Unlike the price-to-earnings (P/E) ratio —which can swing wildly due to transient earnings shocks, accounting quirks or one-time charges—P/S provides a more stable snapshot of a company's economic engine. Sales are less susceptible to short-term volatility, making P/S a useful filter for spotting companies whose earnings might be temporarily depressed but whose business remains solid. Inspired by this philosophy, we applied a screen for companies with: P/S below or equal to 0.3x Market cap above or equal to Rs 2,000 crore This shortlisted 8 businesses (see table) that stand out for their operational scale. Two of them— Redington and Gokul Agro —deserved a closer look. Company P/S Stock Rating 5-year ROCE (pa%) 5-year sales growth (pa%) Gokul Agro Resources 0.2 5 25 25 Chennai Petroleum Corporation 0.1 4 24 10 Redington 0.2 4 21 14 Mangalore Refinery And Petrochemicals 0.2 3 13 14 National Fertilizers 0.2