Companies, such as Karuturi Global, are deemed to be undervalued because their shares are currently trading below their true values. 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.
Karuturi Global Limited (BSE:531687)
Karuturi Global Limited, together with its subsidiaries, produces, sells, and exports cut roses in India and internationally. Karuturi Global was started in 1994 and with the company’s market capitalisation at INR ₹2.34B, we can put it in the mid-cap category.
531687’s stock is currently floating at around -73% beneath its true level of INR5.68, at a price of ₹1.56, based on my discounted cash flow model. The mismatch signals a potential chance to invest in 531687 at a discounted price. Moreover, 531687’s PE ratio is trading at 4.5x while its Food peer level trades at, 18.88x implying that relative to its peers, you can purchase 531687’s stock for a lower price right now. 531687 is also strong financially, as short-term assets amply cover upcoming and long-term liabilities. Finally, its debt relative to equity is 1.37%, which has been dropping over the past couple of years signalling 531687’s capacity to reduce its debt obligations year on year. Continue research on Karuturi Global here.
Reliance Chemotex Industries Limited (BSE:503162)
Reliance Chemotex Industries Limited manufactures and sells synthetic blended yarns in India and internationally. Started in 1977, and currently headed by CEO Sanjiv Shroff, the company size now stands at 1,837 people and with the company’s market capitalisation at INR ₹276.13M, we can put it in the small-cap group.
503162’s stock is currently trading at -76% below its real value of INR283.83, at the market price of ₹69.00, based on its expected future cash flows. This difference in price and value gives us a chance to buy low. Also, 503162’s PE ratio is trading at 10.57x against its its Luxury peer level of, 15.29x meaning that relative to its peers, we can buy 503162’s stock at a cheaper price today. 503162 is also a financially healthy company, as current assets can cover liabilities in the near term and over the long run. It’s debt-to-equity ratio of 118.12% has been falling over the past couple of years indicating its ability to reduce its debt obligations year on year. Dig deeper into Reliance Chemotex Industries here.
Simran Farms Limited (BSE:519566)
Simran Farms Limited engages in the integrated poultry and poultry farming activities in India. Simran Farms was established in 1984 and with the market cap of INR ₹241.91M, it falls under the small-cap stocks category.
519566’s shares are now floating at around -78% beneath its intrinsic value of INR291.02, at a price tag of ₹63.80, according to my discounted cash flow model. The difference between value and price signals a potential opportunity to buy 519566 shares at a discount. Moreover, 519566’s PE ratio stands at 6.02x relative to its Food peer level of, 18.88x implying that relative to its comparable set of companies, we can invest in 519566 at a lower price. 519566 is also in good financial health, with current assets covering liabilities in the near term and over the long run. More on Simran Farms here.
For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.