Recent undervalued companies based on their current market price include Ashiana Ispat and Gujarat Craft Industries. Smart investors can make money from this discrepancy by buying these shares, because they believe the current market prices will eventually move towards their true value. If you’re looking for capital gains in your next investment, I suggest you take a look at my list of potentially undervalued stocks.
Ashiana Ispat Limited (BSE:513401)
Ashiana Ispat Limited manufactures and sells steel products for construction, engineering, automotive, and infrastructure sectors in India. Established in 1992, and currently headed by CEO Puneet Jain, the company size now stands at 132 people and with the company’s market cap sitting at INR ₹246.11M, it falls under the small-cap stocks category.
513401’s shares are now hovering at around -41% beneath its real value of INR52.37, at a price tag of ₹30.90, according to my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. What’s even more appeal is that 513401’s PE ratio stands at around 4.76x relative to its Metals and Mining peer level of, 18.85x suggesting that relative to its comparable set of companies, you can buy 513401 for a cheaper price. 513401 also has a healthy balance sheet, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. The stock’s debt-to-equity ratio of 118.64% has been diminishing for the past few years showing 513401’s capability to pay down its debt. Interested in Ashiana Ispat? Find out more here.
Gujarat Craft Industries Limited (BSE:526965)
Gujarat Craft Industries Limited manufactures and sells coated woven products in India and internationally. Founded in 1984, and run by CEO Ashok Ratanchand Chhajer, the company size now stands at 115 people and has a market cap of INR ₹166.45M, putting it in the small-cap stocks category.
526965’s stock is now hovering at around -55% below its actual level of INR74.89, at the market price of ₹34.05, based on my discounted cash flow model. This mismatch signals an opportunity to buy 526965 shares at a discount. Furthermore, 526965’s PE ratio stands at 8.29x against its its Packaging peer level of, 17.28x indicating that relative to its comparable set of companies, you can buy 526965 for a cheaper price. 526965 is also in good financial health, as short-term assets amply cover upcoming and long-term liabilities. The stock’s debt-to-equity ratio of 87.76% has been reducing over time, showing its ability to pay down its debt. Continue research on Gujarat Craft Industries here.
Sunil Industries Limited (BSE:521232)
Sunil Industries Limited processes and sells fabrics. Established in 1976, and currently lead by Vinod Lath, the company size now stands at 34 people and with the stock’s market cap sitting at INR ₹119.70M, it comes under the small-cap group.
521232’s stock is currently floating at around -63% beneath its intrinsic value of INR77.48, at a price of ₹28.50, according to my discounted cash flow model. The difference between value and price signals a potential opportunity to buy 521232 shares at a discount. In addition to this, 521232’s PE ratio is trading at around 7.4x against its its Luxury peer level of, 17.58x indicating that relative to its comparable company group, we can purchase 521232’s shares for cheaper. 521232 is also in good financial health, with current assets covering liabilities in the near term and over the long run.
More on Sunil Industries here.
For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.