How to find low P/E and high ROE stocks
Learn how to screen low P/E high ROE stocks and avoid common traps around banks, cyclicals, one-off earnings, and low liquidity.
Why investors like this screen
Low P/E tries to capture valuation comfort. High ROE tries to capture business quality. Together, they can identify companies that are profitable without looking obviously expensive. But the combination can also produce traps.
Where it goes wrong
Banks, NBFCs, commodity companies, and cyclicals can distort simple P/E and ROE screens. A low P/E may reflect peak earnings or market distrust. A high ROE may come from leverage, one-off profits, or accounting quirks.
Better version of the screen
Use P/E and ROE with sector exclusions, ROCE, debt, sales growth, profit growth, liquidity, and recent returns. The goal is not just cheap plus profitable; it is cheap enough, profitable enough, and not obviously deteriorating.
How to ask Gimli
Use a direct screening prompt, then refine the result with follow-ups such as adding market cap, sorting by returns, excluding sectors, or checking the industry breakup.
Stocks with PE less than 20 and ROE above 20 percent, exclude banksFresh examples from Gimli data
These rows are pulled from the latest available Gimli database snapshots when the page loads. They are examples for learning, not recommendations.
| Symbol | Pe Ttm | Roe Ttm Pct | Roce Ttm Pct | Market Cap Cr |
|---|---|---|---|---|
| SPARC | 4.75 | 276.90 | 163.09 | 7,383.19 |
| MADRASFERT | 13.52 | 269.50 | 14.11 | 1,087.27 |
| WAAREEINDO | 6.44 | 150.63 | 91.47 | 1,587.18 |
| RAYMOND | 0.76 | 146.91 | 2.31 | 4,078.60 |
| KSOLVES | 20.72 | 136.79 | 98.66 | 710.19 |
Key takeaways
- Low P/E plus high ROE is a starting point, not a final shortlist.
- Exclude sectors where metrics are not comparable when needed.
- Add growth, debt, and liquidity checks before trusting the result.