The stock that resides in the LQ45 Index has a low PER, which one is interesting to buy?

Reporter: Akhmad Suryahadi | Editor: The novice Laoli

KONTAN.CO.ID – JAKARTA. A number of stocks belonging to the LQ45 Index are recorded to have price to earnings ratio (PER) is low. These stocks have a PER of under 11 times.

The shares are PT Media Nusantara Citra Tbk (MNCN) with a PER of 5.77 times, PT Japfa Confeed Indonesia Tbk (JPFA) with a PER of 7.03 times, PT Indofood Sukses Makmur Tbk (INDF) with a PER of 8.66 times, and PT Indah Kiat Pulp & Paper Tbk (INKP) with PER 5.95 times.

There are also shares of PT Erajaya Swasembada Tbk (ERAA) with a PER of 8.64 times, PT Bank Tabungan Negara Tbk (BBTN) with a PER of 9.64 times, PT Paper Factory Tjiwi Kimia Tbk (TKIM) with 7,48 times, and PT Bukit Asam Tbk (PTBA) with a PER of 9.04 times.

The majority of these issuers have a fairly solid financial performance. However, the majority of its shares are still minus from the beginning of the year, except for JPFA and ERAA. Take, for example, INDF shares, which have fallen by 1.09% since the beginning of the year and PTBA, which has corrected 0.71% since the beginning of the year.

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Erdikha Elite Sekuritas analyst Hendri Widiantoro assesses, basically, there are some stocks that do not move in accordance with their fundamental performance. This is because several issuers have not gained momentum/sentiment at the beginning of this year.

However, there were several issuers who gained sentiment and momentum at the end of this year, so the prices gradually improved. Coal companies such as PTBA began to move closer to the price at the beginning of the year after receiving sentiment that coal price movements began to improve.

“Consumer stocks such as INDF are starting to move because they have started to enter the economic recovery cycle, so it is estimated that they will be able to boost the company’s financial performance,” explained Hendri to Kontan.co.id, Wednesday (11/13).

Hendri said, the performance of several stocks also began to improve. The improving performance of these stocks is inseparable from the momentum of economic recovery after the easing of social restrictions. People’s purchasing power also began to increase, so that industrial productivity also increased. This has a multiplier effect on several issuers of consumption and energy.

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Hendri estimates that in the short term these stocks will appreciate until the end of the year, taking advantage of the usual window dressing momentum. He assessed that, in the long term, there are several issuers that have upside potential in business continuity after the economic recovery.

One of them is INDF. The catalyst for this stock was the increase in public consumption amidst the continued recovery of the domestic economy, which was able to drive an increase in INDF’s income until the end of the year.

“As we know that in the fourth quarter of 2021, Indonesia’s economic conditions are much better than the two previous quarters,” he continued.