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Stocks, such as Seshasayee Paper and Boards and Global Education, are trading at a value below what they may actually be 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.
Seshasayee Paper and Boards Limited (NSEI:SESHAPAPER)
Seshasayee Paper and Boards Limited operates an integrated pulp, paper, and paper board mill in India. Established in 1960, and currently run by K. Viswanathan, the company size now stands at 1,321 people and with the market cap of INR ₹10.53B, it falls under the large-cap group.
SESHAPAPER’s shares are currently floating at around -44% beneath its intrinsic level of INR1500.17, at the market price of ₹834.50, based on my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. Also, SESHAPAPER’s PE ratio is trading at around 7.92x against its its Forestry peer level of, 15x implying that relative to its comparable company group, you can buy SESHAPAPER’s shares at a cheaper price. SESHAPAPER is also a financially healthy company, with current assets covering liabilities in the near term and over the long run. Finally, its debt relative to equity is 30.73%, which has been falling for the past few years signalling its capacity to pay down its debt. Continue research on Seshasayee Paper and Boards here.
Global Education Limited (NSEI:GLOBAL)
Global Education Limited provides educational and consultancy services in India and internationally. Started in 2011, and now led by CEO Rajeev Chand, the company employs 121 people and with the stock’s market cap sitting at INR ₹448.18M, it comes under the small-cap stocks category.
GLOBAL’s shares are now floating at around -59% beneath its actual value of INR443.4, at a price tag of ₹180.50, according to my discounted cash flow model. The discrepancy signals an opportunity to buy low. Also, GLOBAL’s PE ratio stands at 6.7x relative to its Consumer Services peer level of, 34.91x indicating that relative to its competitors, you can buy GLOBAL for a cheaper price. GLOBAL is also in great financial shape, as short-term assets amply cover upcoming and long-term liabilities.
More detail on Global Education here.
Rithwik Facility Management Services Limited (BSE:540843)
Rithwik Facility Management Services Limited provides integrated facilities, property, and equipment and assets management services in India. Rithwik Facility Management Services was established in 2010 and with the stock’s market cap sitting at INR ₹100.98M, it comes under the small-cap group.