K.C.P. Sugar and Industries and Hind Aluminium Industries are two of the stocks I have identified as undervalued. This means their current share prices are trading at levels less than what the companies are actually worth. Investors can profit from the difference by investing in these stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.
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 started in 1995 and with the stock’s market cap sitting at INR ₹2.88B, it comes under the mid-cap stocks category.
533192’s stock is now floating at around -49% less than its true level of INR49.36, at a price tag of ₹25.40, based on its expected future cash flows. This discrepancy gives us a chance to invest in 533192 at a discount. In addition to this, 533192’s PE ratio stands at around 8.48x relative to its Food peer level of, 20.39x suggesting that relative to other stocks in the industry, 533192’s shares can be purchased for a lower price. 533192 is also a financially healthy company, as current assets can cover liabilities in the near term and over the long run. 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. Formed in 1987, and headed by CEO Shailesh Daga, the company employs 85 people and with the company’s market capitalisation at INR ₹586.86M, we can put it in the small-cap stocks category.
531979’s stock is now hovering at around -47% beneath its value of INR174.76, at a price tag of ₹93.15, according to my discounted cash flow model. The difference between value and price signals a potential opportunity to buy 531979 shares at a discount. Moreover, 531979’s PE ratio is currently around 9.07x compared to its Metals and Mining peer level of, 19.27x suggesting that relative to other stocks in the industry, 531979’s shares can be purchased for a lower price. 531979 also has a healthy balance sheet, with near-term assets able to cover upcoming and long-term liabilities. Dig deeper into 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 stocks category.
532932’s shares are currently floating at around -83% beneath its actual worth of INR302.56, at the market price of ₹49.95, based on my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. Moreover, 532932’s PE ratio is currently around 3.66x while its Metals and Mining peer level trades at, 19.27x implying that relative to its peers, we can invest in 532932 at a lower price. 532932 is also strong financially, 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 11.18% has been dropping over time, signifying 532932’s ability to reduce its debt obligations year on year. Interested in Manaksia? Find out more here.
For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.