Stocks recently deemed undervalued include Indo Borax & Chemicals and Lahoti Overseas, as they trade at a market price below their true valuations. 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.
Indo Borax & Chemicals Limited (BSE:524342)
Indo Borax & Chemicals Limited manufactures and sells chemicals in India. Indo Borax & Chemicals was started in 1980 and with the stock’s market cap sitting at INR ₹1.46B, it comes under the small-cap group.
524342’s shares are currently hovering at around -41% lower than its intrinsic level of INR708.98, at a price of INR418.45, based on my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. Moreover, 524342’s PE ratio stands at around 16.9x compared to its chemicals peer level of 27.1x, meaning that relative to its peers, 524342’s shares can be purchased for a lower price. 524342 is also strong financially, with current assets covering liabilities in the near term and over the long run. It’s debt-to-equity ratio of 1% has been dropping for the past few years showing its ability to pay down its debt. Interested in Indo Borax & Chemicals? Find out more here.
Lahoti Overseas Limited (BSE:531842)
Lahoti Overseas Limited, together with its subsidiaries, engages in the export trading of cotton yarns and fabrics. Lahoti Overseas was founded in 1990 and with the company’s market capitalisation at INR ₹684.07M, we can put it in the small-cap stocks category.
531842’s stock is now trading at -41% beneath its real value of INR40.02, at the market price of INR23.45, based on my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. Furthermore, 531842’s PE ratio is trading at around 6.2x compared to its retail distributors peer level of 83.7x, indicating that relative to other stocks in the industry, 531842’s stock can be bought at a cheaper price. 531842 is also strong financially, with current assets covering liabilities in the near term and over the long run.
Continue research on Lahoti Overseas here.
Shree Krishna Paper Mills & Industries Limited (BSE:500388)
Shree Krishna Paper Mills & Industries Limited manufactures, markets, and trades in paper in India. Formed in 1972, and run by CEO Narendra Pasari, the company employs 273 people and with the company’s market capitalisation at INR ₹425.93M, we can put it in the small-cap group.