Haryana Leather Chemicals and Yogi Infra Projects are two of the stocks I have identified as undervalued. This means their current share prices are trading at levels less than what the companies are actually worth. Investors can determine how much a company is worth based on how much money they are expected to make in the future, or compared to the value of their peers. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them good investments if you believe the price should eventually reflect the stock’s actual value.
Haryana Leather Chemicals Limited (BSE:524080)
Haryana Leather Chemicals Limited manufactures and sells various performance chemicals for use in leather processing, footwear finishing, textile printing, pressure sensitive adhesives, and PVC additives in India, the Far East, Asia, Africa, the Middle East, and Europe. Established in 1985, and currently lead by Pankaj Jain, the company provides employment to 89 people and with the stock’s market cap sitting at INR ₹163.94M, it comes under the small-cap group.
524080’s shares are now trading at -45% below its intrinsic value of INR63.26, at the market price of ₹34.55, according to my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. Moreover, 524080’s PE ratio is currently around 9.82x while its Chemicals peer level trades at, 19.18x suggesting that relative to its comparable set of companies, you can buy 524080 for a cheaper price. 524080 is also a financially robust company, with current assets covering liabilities in the near term and over the long run. 524080 also has a miniscule amount of debt on its balance sheet, which gives it headroom to grow and financial flexibility. Dig deeper into Haryana Leather Chemicals here.
Yogi Infra Projects Limited (BSE:522209)
Yogi Infra Projects Limited engages in the infrastructure construction activities in India. Yogi Infra Projects was started in 1993 and with the stock’s market cap sitting at INR ₹33.69M, it comes under the small-cap group.
522209’s stock is currently trading at -98% less than its real value of INR123.86, at a price tag of ₹1.90, based on my discounted cash flow model. This mismatch indicates a chance to invest in 522209 at a discounted price. Furthermore, 522209’s PE ratio stands at 6.33x against its its Construction peer level of, 19.83x suggesting that relative to other stocks in the industry, we can purchase 522209’s shares for cheaper. 522209 is also a financially healthy company, with near-term assets able to cover upcoming and long-term liabilities.