Companies with shares trading at a market price below what they are actually worth, such as Bits and PVP Ventures, are deemed undervalued. 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.

Bits Limited (BSE:526709)

Bits Limited provides educational services in India. The company was established in 1992 and with the stock’s market cap sitting at INR ₹22.38M, it comes under the small-cap category.

526709’s shares are now trading at -96% beneath its true value of INR5.37, at a price tag of ₹0.20, according to my discounted cash flow model. This difference in price and value gives us a chance to buy low. In terms of relative valuation, 526709’s PE ratio stands at around 8.44x while its Consumer Services peer level trades at, 38.34x meaning that relative to its competitors, you can buy 526709’s shares at a cheaper price. 526709 is also a financially healthy company, with near-term assets able to cover upcoming and long-term liabilities. 526709 also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. Dig deeper into Bits here.

PVP Ventures Limited (BSE:517556)

PVP Ventures Limited engages in the real estate/urban infrastructure, and media production and movie financing activities in India. PVP Ventures was established in 1991 and has a market cap of INR ₹1.52B, putting it in the small-cap category.

517556’s shares are currently hovering at around -79% under its intrinsic value of INR30.06, at a price of ₹6.25, based on its expected future cash flows. The mismatch signals a potential chance to invest in 517556 at a discounted price. In addition to this, 517556’s PE ratio stands at around 18.64x relative to its Real Estate peer level of, 23.99x suggesting that relative to its comparable company group, you can buy 517556 for a cheaper price. 517556 is also in great financial shape, with current assets covering liabilities in the near term and over the long run.

Dig deeper into PVP Ventures here.

CIL Securities Limited (BSE:530829)

CIL Securities Limited provides various financial services in India. Started in 1989, and headed by CEO Krishna Maheshwari, the company now has 34 employees and has a market cap of INR ₹139.00M, putting it in the small-cap stocks category.

530829’s stock is currently hovering at around -56% less than its intrinsic level of INR62.95, at a price of ₹27.80, based on my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. In addition to this, 530829’s PE ratio stands at 5.29x compared to its Capital Markets peer level of, 24.25x suggesting that relative to other stocks in the industry, you can purchase 530829’s stock for a lower price right now. 530829 is also strong in terms of its financial health, with current assets covering liabilities in the near term and over the long run. 530829 has zero debt on its books as well, meaning it has no long term debt obligations to worry about. Interested in CIL Securities? Find out more here.