Stocks, such as Yogi Infra Projects, trading at a market price below their true values are considered to be undervalued. There’s a few ways you can determine how much a company is actually worth. The most popular methods include discounting the company’s cash flows it is expected to create in the future, or comparing its price to its peers or the value of its assets. The discrepancy between the price and value means investors have an opportunity to buy shares at a discount. Below are the stocks I believe are undervalued on all criteria, based on their latest financial data.
Yogi Infra Projects Limited (BSE:522209)
Yogi Infra Projects Limited engages in the infrastructure construction activities in India. Yogi Infra Projects was started in 1993 and with the company’s market cap sitting at INR ₹29.65M, it falls under the small-cap stocks category.
522209’s stock is currently floating at around -99% lower than its value of INR143.21, at the market price of ₹1.76, based on its expected future cash flows. signalling an opportunity to buy the stock at a low price. Additionally, 522209’s PE ratio stands at around 18.42x relative to its Construction peer level of, 25.84x meaning that relative to its comparable company group, 522209’s stock can be bought at a cheaper price. 522209 is also in great financial shape, with near-term assets able to cover upcoming and long-term liabilities.
Interested in Yogi Infra Projects? Find out more here.
Ion Exchange (India) Limited (BSE:500214)
Ion Exchange (India) Limited provides water and environment management solutions in India and internationally. Ion Exchange (India) was founded in 1964 and with the stock’s market cap sitting at INR ₹7.03B, it comes under the mid-cap stocks category.
500214’s stock is currently floating at around -64% beneath its true level of INR1337.6, at the market price of ₹479.25, based on my discounted cash flow model. This mismatch signals an opportunity to buy 500214 shares at a discount. Additionally, 500214’s PE ratio stands at around 24.03x relative to its Commercial Services peer level of, 42.48x meaning that relative to its comparable set of companies, we can invest in 500214 at a lower price. 500214 also has a healthy balance sheet, with current assets covering liabilities in the near term and over the long run.
More detail on Ion Exchange (India) here.
JK Paper Limited (BSE:532162)
JK Paper Limited manufactures and sells papers primarily in India. JK Paper was formed in 1960 and with the company’s market capitalisation at INR ₹26.07B, we can put it in the large-cap stocks category.