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Asian Granito India Limited (NSE:ASIANTILES), which is in the building business, and is based in India, led the NSEI gainers with a relatively large price hike in the past couple of weeks. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine Asian Granito India’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
Check out our latest analysis for Asian Granito India
What is Asian Granito India worth?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 1.4% below my intrinsic value, which means if you buy Asian Granito India today, you’d be paying a fair price for it. And if you believe the company’s true value is ₹179.17, then there’s not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? Given that Asian Granito India’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
Can we expect growth from Asian Granito India?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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. With profit expected to grow by 65% over the next year, the near-term future seems bright for Asian Granito India. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? It seems like the market has already priced in ASIANTILES’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping tabs on ASIANTILES, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.