Profitable and undervalued: 3 stocks to watch in 2026
value investing. One key measure of profitability is Return on Equity (ROE), which shows how efficiently a company uses shareholders’ money to generate profits.In 2026, with valuations stretched in many sectors, looking for stocks with strong ROE and attractive prices can help investors target both growth and safety.We screened for companies with ROE around 20% or more and price-to-earnings ratios near 10. Here are three that stand out.
This article is not a stock recommendation.Coal India produces over 80% of India’s coal and ranks as the world’s largest coal miner. Investors have long favoured it for its attractive dividend yield. The stock trades at a price-to-earnings ratio of 9.1, with a strong ROE of 35.6%.Looking ahead, Coal India targets 1.23 billion tonnes by FY2035, projecting 8% annual growth from FY2025.
Priority access to railway infrastructure and expedited project clearances support operational efficiency.The company is diversifying into coal gas, coal bed methane, and renewable energy, aligning with emerging policy incentives. Joint ventures in coking coal washeries aim to support domestic steel manufacturers. Operational improvements, ranging from digital mine management to productivity and environmental measures, complement these long-term initiatives.India’s largest iron ore producer, NMDC is a state-owned enterprise under the Ministry of Steel.
Read on livemint.com