Undervalued companies are those that trade at a price lower than their actual values, such as Manaksia and Opto Circuits (India). 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.
Manaksia Limited (BSE:532932)
Manaksia Limited manufactures and sells packaging, metal, and other products in India and internationally. The company was established in 1984 and with the market cap of INR ₹3.49B, it falls under the mid-cap category.
532932’s shares are now floating at around -82% less than its true level of INR297.67, at the market price of ₹53.20, based on my discounted cash flow model. This mismatch signals an opportunity to buy 532932 shares at a discount. In addition to this, 532932’s PE ratio is around 3.9x compared to its Metals and Mining peer level of, 19.61x implying that relative to other stocks in the industry, you can buy 532932’s shares at a cheaper price. 532932 is also robust in terms of financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. It’s debt-to-equity ratio of 11.18% has been falling for the past few years indicating its ability to pay down its debt. Continue research on Manaksia here.
Opto Circuits (India) Ltd (BSE:532391)
Opto Circuits (India) Ltd designs, develops, manufactures, markets, and distributes medical products in India and internationally. Opto Circuits (India) was started in 1992 and with the stock’s market cap sitting at INR ₹3.37B, it comes under the mid-cap stocks category.
532391’s shares are now floating at around -87% below its actual value of INR84.89, at the market price of ₹10.94, based on my discounted cash flow model. This discrepancy signals a potential opportunity to buy 532391 shares at a low price. Furthermore, 532391’s PE ratio stands at 8.16x compared to its Medical Equipment peer level of, 24.9x implying that relative to its peers, you can buy 532391’s shares at a cheaper price. 532391 is also a financially healthy company, with current assets covering liabilities in the near term and over the long run.
Dig deeper into Opto Circuits (India) here.
Nahar Poly Films Limited (BSE:523391)
Nahar Poly Films Limited manufactures and sells bi-axially oriented polypropylene films in India and internationally. Formed in 1988, and headed by CEO Jawahar Oswal, the company now has 182 employees and with the market cap of INR ₹1.38B, it falls under the small-cap group.