New Delhi: Brokerage firms are bullish on some of the major financial companies in the Indian stock market, including Manappuram Finance, Bajaj Finance, Aditya Birla Capital, Union Bank of India, Reliance Industries, and Shriram Finance. The shares of these companies have the potential to give up to 55 percent return.

ET's team has selected stocks that meet the criteria of the new ratios PEG ratio and LTG ratio. When you think about a stock, you often pay attention to the PE (Price-to-Earnings) ratio. However, the PE ratio is only an indicator and its use is not enough to get the correct valuation of a company. The PEG ratio is helpful for correct valuation. The PEG ratio (Price/Earnings to Growth ratio) helps investors to recognize the real growth of companies and helps to avoid stocks that look cheap.

For example, 12 years ago, the PE ratio of an MNC company was 44, while Nifty's PE ratio was 25. Since then, the market capitalization of that company has increased 10 times, and today its PE ratio is 65. If you had decided to buy or sell a stock by just looking at the PE ratio, you would have missed an opportunity to earn. Therefore, ET brings you stocks that have a long-term earning potential.

Manappuram Finance has an average score of 8 and its stock has an upside potential of 54.9%. It is a mid-cap company with a market capitalization of ₹14,199 crore and institutional holdings of 27.7%. It has a PEG ratio of 0.9 and an LTG ratio of 8.5%.

Bajaj Finance has an average score of 7 and its stock has an upside potential of 46%. It is a large company with a market capitalization of ₹4,24,536 crore and institutional holdings of 25.1%. It has a PEG ratio of 1.1 and an LTG ratio of 20.6%.

Aditya Birla Capital has an average score of 6 and its stock has an upside potential of 43.4%. This is a large company with a market capitalization of ₹51,783 crore and institutional holdings of 10.1%. It has a PEG ratio of 1.0 and an LTG ratio of 14.7%.

Union Bank of India has an average score of 9 and its stock has an upside potential of 39.6%. It is also a large company with a market capitalization of ₹98,321 crore and institutional holdings of 12.8%. It has a PEG ratio of 0.3 and an LTG ratio of 20.4%.

Reliance Industries has an average score of 7 and its stock has an upside potential of 39.5%. It is a large-cap company with a market capitalization of ₹17,75,177 crore and institutional holdings of 27.1%. It has a PEG ratio of 1.2 and an LTG ratio of 19.8%.

Shriram Finance has an average score of 8 and an upside potential of 36.9% is seen on its stock. The company is a large-cap company with a market capitalization of ₹1,17,492 crore and its institutional share is 48.4%. Its PEG ratio is 0.5 and its LTG ratio is 22.7%.