Talbros Automotive Components and Winsome Textile Industries may be trading at prices below their likely values. This suggests that these stocks are undervalued, meaning we can benefit when the stock price moves to its true valuation. Investors can benefit from buying these companies while they are discounted, because they gain when the market prices move towards the stocks’ true values. Below is a list of stocks I’ve compiled that are deemed undervalued based on the latest financial data.
Talbros Automotive Components Limited (BSE:505160)
Talbros Automotive Components Limited manufactures and sells auto components and parts in India and internationally. Founded in 1956, and now run by Umesh Talwar, the company currently employs 579 people and with the company’s market cap sitting at INR ₹4.07B, it falls under the mid-cap stocks category.
505160’s shares are now floating at around -21% lower than its real value of INR417.15, at a price tag of INR329.3, according to my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. Furthermore, 505160’s PE ratio is around 20.4x compared to its auto components peer level of 30.5x, indicating that relative to its comparable set of companies, 505160’s shares can be purchased for a lower price. 505160 is also strong financially, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. Finally, its debt relative to equity is 71%, which has been reducing over the past couple of years signalling 505160’s ability to pay down its debt. Interested in Talbros Automotive Components? Find out more here.
Winsome Textile Industries Limited (BSE:514470)
Winsome Textile Industries Limited produces and sells yarns and fabrics in India and internationally. Founded in 1980, and currently headed by CEO Anil Sharma, the company currently employs 2,141 people and with the company’s market capitalisation at INR ₹1.43B, we can put it in the small-cap group.
514470’s shares are currently trading at -55% under its value of INR160.36, at a price of INR72.2, based on its expected future cash flows. This mismatch indicates a potential opportunity to buy low. In addition to this, 514470’s PE ratio stands at 7.4x while its luxury peer level trades at 12.5x, meaning that relative to other stocks in the industry, 514470 can be bought at a cheaper price right now. 514470 is also strong financially, with short-term assets covering liabilities in the near future as well as in the long run. It’s debt-to-equity ratio of 143% has been declining over the past couple of years revealing 514470’s ability to reduce its debt obligations year on year. Dig deeper into Winsome Textile Industries here.