24 stocks with high dividend and low PE combo

The Indian stock market is going through a rough patch, with the bears
extensively dominating the bulls. Since the beginning of 2011, Sensex
has fallen over 14%, not sparing the midcaps or smallcaps. BSE Midcap
and Smallcap indices fell more than 16% and 19% respectively during
the same period.

The slide in the market has been due to higher inflation, hike in
interest rates, disappointing IIP numbers and Mauritius tax treaty and
several other reasons. But investors are using this decline too to
their advantage. Typically, investors are interested in valuable
stocks in this kind of fall and adopt a 'buy on dips' strategy. Thus,
when the market bounces back investors are hoping to make maximum RoE
(return on investment) in a short period of time.

In this type of market we can take into consideration stocks that
declare higher dividends, and if the PE is less than or equal to 5,
then valuation wise, these stocks may have higher growth rate.

Below is a list of stocks (with marketcap above Rs 250 crore) with
high dividend yield but low P/E. Dividend yield is greater than or
equal to 4% and P/E less than or equal to 10. (As on June 22, 2011)

Company

Market Cap

P/E

Dividend Yield%

Aarti Inds .

354.83

5.31

5.31

Andhra Bank

7224.18

5.70

4.27

Bajaj Holdings

8269.40

8.27

4.71

Balmer Lawrie

927.80

7.66

4.00

C P C L

3277.42

6.41

5.49

D C Holdings

1562.95

9.62

4.67

Electrost.Cast.

944.45

6.21

4.32

GHCL

373.07

3.19

5.29

HCL Infosystems

1944.80

8.08

8.52

HEG

1020.45

7.92

4.21

Hyd.Industries

276.24

5.73

4.34

Indo Rama Synth.

583.79

4.23

5.09

JK Paper

354.02

3.33

4.32

K P R Mill Ltd

443.49

6.22

4.72

Kirl. Ferrous

363.85

7.46

5.54

Kothari Products

284.92

4.62

4.67

Mangalam Cement

297.12

7.77

5.44

Nava Bharat Vent

1569.37

5.13

4.12

Navin Fluo.Intl.

277.18

3.60

5.34

NIIT Tech .

1030.76

8.55

4.06

PSL

371.01

4.89

5.74

Sasken Comm.Tec.

344.43

3.85

4.77

Sonata Software

407.65

6.57

5.04

SRF

1671.92

3.60

4.94