At ₹254, Is GTPL Hathway Limited (NSE:GTPL) Worth Looking At Closely?

While GTPL Hathway Limited (NSE:GTPL) might not be the most widely known stock at the moment, it saw a significant share price rise of over 20% in the past couple of months on the NSEI. Less-covered, small caps tend to present more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s take a look at GTPL Hathway’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for GTPL Hathway

Is GTPL Hathway still cheap?

Great news for investors – GTPL Hathway is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is ₹410.86, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, GTPL Hathway’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

Can we expect growth from GTPL Hathway?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a negative profit growth of -5.3% expected next year, near-term growth certainly doesn’t appear to be a driver for a buy decision for GTPL Hathway. This certainty tips the risk-return scale towards higher risk.

What this means for you:

Are you a shareholder? Although GTPL is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. I recommend you think about whether you want to increase your portfolio exposure to GTPL, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping tabs on GTPL for some time, but hesitant on making the leap, I recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

If you'd like to know more about GTPL Hathway as a business, it's important to be aware of any risks it's facing. In terms of investment risks, we've identified 2 warning signs with GTPL Hathway, and understanding these should be part of your investment process.

If you are no longer interested in GTPL Hathway, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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