Elixir Capital and CIL Securities are stocks on my list that are potentially undervalued. This means their current share prices are trading well-below what the companies are actually worth. There’s a few ways you can measure the value of a company – you can forecast how much money it will make in the future and base your valuation off of this, or you can look around at its peers of similar size and industry to roughly estimate what it should be worth. Below, I’ve created a list of companies that compare favourably in all criteria based on their most recent financial data, making them potentially good investments.
Elixir Capital Limited (BSE:531278)
Elixir Capital Limited, together with its subsidiaries, trades and invests in shares and securities in India. Elixir Capital was founded in 1994 and with the company’s market capitalisation at INR ₹237.64M, we can put it in the small-cap stocks category.
531278’s shares are currently hovering at around -42% below its true level of INR70.19, at a price of INR40.95, based on its expected future cash flows. This mismatch indicates a chance to invest in 531278 at a discounted price. What’s even more appeal is that 531278’s PE ratio is trading at 5.3x relative to its capital markets peer level of 25.8x, meaning that relative to its comparable company group, 531278’s stock can be bought at a cheaper price. 531278 is also a financially robust company, as short-term assets amply cover upcoming and long-term liabilities.
Interested in Elixir Capital? Find out more here.
CIL Securities Limited (BSE:530829)
CIL Securities Limited provides various financial services in India. Founded in 1989, and run by CEO Krishna Maheshwari, the company provides employment to 34 people and has a market cap of INR ₹157.00M, putting it in the small-cap stocks category.
530829’s shares are now trading at -50% lower than its intrinsic value of INR62.73, at the market price of INR31.4, based on my discounted cash flow model. This discrepancy gives us a chance to invest in 530829 at a discount. Additionally, 530829’s PE ratio is currently around 4.7x compared to its capital markets peer level of 25.8x, suggesting that relative to other stocks in the industry, 530829 can be bought at a cheaper price right now. 530829 is also a financially healthy company, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. 530829 also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. More detail on CIL Securities here.