India, July 4 -- The automobile sector continues to benefit from rising vehicle demand, premiumization, electrification, improving exports, and government initiatives supporting manufacturing. While many auto stocks trade at premium valuations, a few market leaders continue to offer attractive valuations relative to their earnings growth.

A PEG ratio below 1 indicates that investors are paying less than one unit of price for every unit of expected earnings growth. Although the metric should never be viewed in isolation, it is widely used by investors to identify companies where future growth may not yet be fully reflected in the stock price.

1. Mahindra & Mahindra With a market capitalization of approximately Rs. 3,90,169.61 crore, the...