Stocks recently deemed undervalued include K.C.P. Sugar and Industries and Hind Aluminium Industries, as they trade at a market price below their true valuations. Investors can determine how much a company is worth based on how much money they are expected to make in the future, or compared to the value of their peers. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them good investments if you believe the price should eventually reflect the stock’s actual value.
K.C.P. Sugar and Industries Corporation Limited (BSE:533192)
K.C.P. Sugar and Industries Corporation Limited, together with its subsidiaries, manufactures and sells sugar and associated products in India and internationally. K.C.P. Sugar and Industries was established in 1995 and with the company’s market capitalisation at INR ₹2.88B, we can put it in the mid-cap group.
533192’s shares are currently floating at around -49% under its actual worth of INR49.36, at a price of ₹25.40, based on its expected future cash flows. The difference between value and price signals a potential opportunity to buy 533192 shares at a discount. What’s even more appeal is that 533192’s PE ratio stands at 8.48x compared to its Food peer level of, 20.39x implying that relative to its peers, we can invest in 533192 at a lower price. 533192 is also a financially robust company, as short-term assets amply cover upcoming and long-term liabilities.
Continue research on K.C.P. Sugar and Industries here.
Hind Aluminium Industries Limited (BSE:531979)
Hind Aluminium Industries Limited manufactures and sells aluminum products. Established in 1987, and currently headed by CEO Shailesh Daga, the company size now stands at 85 people and with the market cap of INR ₹586.86M, it falls under the small-cap group.
531979’s stock is currently trading at -47% below its true value of INR174.76, at a price of ₹93.15, based on my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. What’s even more appeal is that 531979’s PE ratio stands at around 9.07x against its its Metals and Mining peer level of, 19.27x suggesting that relative to its comparable set of companies, you can buy 531979’s shares at a cheaper price. 531979 is also a financially healthy company, as short-term assets amply cover upcoming and long-term liabilities.
More detail on Hind Aluminium Industries here.
Manaksia Limited (BSE:532932)
Manaksia Limited manufactures and sells packaging, metal, and other products in India and internationally. Manaksia was started in 1984 and with the stock’s market cap sitting at INR ₹3.27B, it comes under the mid-cap category.