Catvision, Lycos Internet, and UFO Moviez India are technology companies which share a common feature – they’re also great dividend stocks. The tech sector is known to be highly volatile and cyclical since firms face high competition, constant disruption and generally relies on consumer discretionary income. Catvision and Lycos Internet are tech companies that are currently trading below what they’re actually worth. There’s a few ways you can determine how much a cyclical company is actually worth. The most popular methods include discounting the company’s cash flows it is expected to create in the future, or comparing its price to its peers or the value of its assets. The discrepancy between the price and value means investors have an opportunity to buy shares at a discount. Below are the stocks I believe are undervalued on all criteria, based on their latest financial data.
Catvision Limited (BSE:531158)
Catvision Limited engages in the manufacture and sale of community antenna television (CATV), satellite master antenna television, and IPTV equipment in India and internationally. Catvision was started in 1985 and with the company’s market capitalisation at INR ₹225.23M, we can put it in the small-cap group.
531158’s stock is now floating at around -51% under its true level of INR84.48, at the market price of ₹41.30, based on my discounted cash flow model. The discrepancy signals an opportunity to buy low. Moreover, 531158’s PE ratio stands at around 19.83x while its Communications peer level trades at, 25.26x suggesting that relative to its competitors, you can purchase 531158’s stock for a lower price right now. 531158 is also robust in terms of financial health, with near-term assets able to cover upcoming and long-term liabilities.
Dig deeper into Catvision here.
Lycos Internet Limited (BSE:532368)
Lycos Internet Limited provides digital marketing solutions and computer software development services to businesses, agencies, and online publishers worldwide. Formed in 1999, and now run by Muthukuru Reddy, the company employs 1,000 people and with the company’s market capitalisation at INR ₹2.04B, we can put it in the mid-cap group.
532368’s shares are now hovering at around -66% below its true level of INR12.57, at a price of ₹4.28, based on its expected future cash flows. signalling an opportunity to buy the stock at a low price. Also, 532368’s PE ratio stands at 0.47x relative to its Internet peer level of, 24.95x implying that relative to its comparable company group, we can purchase 532368’s shares for cheaper. 532368 is also strong in terms of its financial health, with near-term assets able to cover upcoming and long-term liabilities. It’s debt-to-equity ratio of 3.29% has been reducing for the last couple of years showing its capability to reduce its debt obligations year on year. Continue research on Lycos Internet here.