Recent undervalued companies based on their current market price include Dhunseri Petrochem and Anjani Synthetics. 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.
Dhunseri Petrochem Limited (BSE:523736)
Dhunseri Petrochem Limited engages in treasury business India and internationally. Established in 1916, and headed by CEO Aruna Dhanuka, the company size now stands at 5,610 people and with the market cap of INR ₹4.17B, it falls under the mid-cap group.
523736’s shares are currently floating at around -76% below its actual value of INR506.83, at a price tag of ₹122.00, according to my discounted cash flow model. The discrepancy signals an opportunity to buy low. Furthermore, 523736’s PE ratio stands at around 8.16x relative to its Chemicals peer level of, 19.18x meaning that relative to its comparable set of companies, we can purchase 523736’s shares for cheaper. 523736 is also strong in terms of its financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. The stock’s debt-to-equity ratio of 9.75% has been diminishing for the last couple of years signifying its ability to pay down its debt. Interested in Dhunseri Petrochem? Find out more here.
Anjani Synthetics Limited (BSE:531223)
Anjani Synthetics Limited manufactures and sells fabrics in India. Founded in 1984, and now run by Vasudev Agarwal, the company size now stands at 94 people and has a market cap of INR ₹361.38M, putting it in the small-cap category.
531223’s stock is now trading at -50% below its real value of INR47.43, at a price tag of ₹23.95, based on my discounted cash flow model. The difference between value and price signals a potential opportunity to buy 531223 shares at a discount. Additionally, 531223’s PE ratio is trading at 11.24x compared to its Luxury peer level of, 16.59x meaning that relative to its competitors, 531223’s shares can be purchased for a lower price. 531223 also has a healthy balance sheet, with short-term assets covering liabilities in the near future as well as in the long run. The stock’s debt-to-equity ratio of 136.22% has been declining for the last couple of years showing 531223’s capability to reduce its debt obligations year on year. Dig deeper into Anjani Synthetics here.
Rungta Irrigation Limited (BSE:530449)
Rungta Irrigation Limited designs, manufactures, assembles, and markets pipe-based sprinkler irrigation systems in India. Rungta Irrigation was formed in 1986 and with the stock’s market cap sitting at INR ₹221.40M, it comes under the small-cap group.
530449’s shares are currently hovering at around -63% beneath its intrinsic value of INR68.07, at the market price of ₹25.00, based on my discounted cash flow model. This discrepancy gives us a chance to invest in 530449 at a discount. What’s even more appeal is that 530449’s PE ratio is trading at 9.57x relative to its Machinery peer level of, 26.33x suggesting that relative to its comparable set of companies, we can invest in 530449 at a lower price. 530449 is also strong in terms of its financial health, as short-term assets amply cover upcoming and long-term liabilities. Interested in Rungta Irrigation? Find out more here.
For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.