Best Cheap Stocks To Buy

Recent undervalued companies based on their current market price include National Standard (India) and Dwarikesh Sugar Industries. Smart investors can make money from this discrepancy by buying these shares, because they believe the current market prices will eventually move towards their true value. If you’re looking for capital gains in your next investment, I suggest you take a look at my list of potentially undervalued stocks.

National Standard (India) Limited (BSE:504882)

National Standard (India) Limited engages in the real estate development activities in India. National Standard (India) was started in 1962 and with the company’s market capitalisation at INR ₹438.00M, we can put it in the small-cap stocks category.

504882’s stock is now hovering at around -84% below its intrinsic level of INR139.66, at a price of ₹21.90, according to my discounted cash flow model. The discrepancy signals an opportunity to buy low. Furthermore, 504882’s PE ratio is trading at around 2.46x while its Real Estate peer level trades at, 23.99x meaning that relative to other stocks in the industry, you can buy 504882 for a cheaper price. 504882 is also strong in terms of its financial health, as short-term assets amply cover upcoming and long-term liabilities. The stock’s debt-to-equity ratio of 30.12% has been falling over time, indicating 504882’s capability to reduce its debt obligations year on year. More detail on National Standard (India) here.

BSE:504882 PE PEG Gauge Mar 17th 18
BSE:504882 PE PEG Gauge Mar 17th 18

Dwarikesh Sugar Industries Limited (BSE:532610)

Dwarikesh Sugar Industries Limited, an integrated conglomerate, manufactures and sells sugar and allied products in India. Formed in 1993, and headed by CEO Gautam Morarka, the company now has 638 employees and with the company’s market cap sitting at INR ₹5.60B, it falls under the mid-cap stocks category.

532610’s stock is now floating at around -55% lower than its intrinsic value of INR64.42, at a price of ₹29.10, according to my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. What’s even more appeal is that 532610’s PE ratio is trading at around 3.51x while its Food peer level trades at, 21.38x indicating that relative to its comparable company group, we can purchase 532610’s shares for cheaper. 532610 is also a financially robust company, as short-term assets amply cover upcoming and long-term liabilities. The stock’s debt-to-equity ratio of 20.24% has been reducing over time, demonstrating 532610’s capability to reduce its debt obligations year on year. Dig deeper into Dwarikesh Sugar Industries here.