In This Article:
Companies that are recently trading at a market price lower than their real values include Gujarat Narmada Valley Fertilizers & Chemicals and Kiri Industries. 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.
Gujarat Narmada Valley Fertilizers & Chemicals Limited (BSE:500670)
Gujarat Narmada Valley Fertilizers & Chemicals Limited manufactures and markets fertilizers and chemicals in India. Formed in 1976, and currently headed by CEO Rajiv Gupta, the company employs 3,075 people and with the company’s market cap sitting at INR ₹73.50B, it falls under the large-cap category.
500670’s shares are currently floating at around -21% beneath its actual level of INR598.81, at the market price of ₹472.90, according to my discounted cash flow model. The divergence signals an opportunity to buy 500670 shares at a low price. Also, 500670’s PE ratio is trading at 9.25x against its its Chemicals peer level of, 22.07x implying that relative to its comparable company group, 500670’s shares can be purchased for a lower price. 500670 also has a healthy balance sheet, as short-term assets amply cover upcoming and long-term liabilities. Finally, its debt relative to equity is 8.80%, which has been dropping for the past few years showing its ability to pay down its debt. Dig deeper into Gujarat Narmada Valley Fertilizers & Chemicals here.
Kiri Industries Limited (BSE:532967)
Kiri Industries Limited manufactures and sells dyes, dyes intermediates, and basic chemicals in India. The company was established in 1998 and with the company’s market cap sitting at INR ₹13.27B, it falls under the large-cap stocks category.
532967’s stock is now hovering at around -26% lower than its actual level of INR575.3, at a price of ₹423.40, according to my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. In terms of relative valuation, 532967’s PE ratio is trading at around 4.07x compared to its Chemicals peer level of, 22.07x suggesting that relative to its competitors, you can buy 532967’s shares at a cheaper price. 532967 is also in good financial health, with current assets covering liabilities in the near term and over the long run. Finally, its debt relative to equity is 13.52%, which has been falling over time, signalling its capacity to pay down its debt. Continue research on Kiri Industries here.