Titagarh Wagons Limited (NSEI:TWL), a machinery company based in India, saw significant share price volatility over the past couple of months on the NSEI, rising to the highs of ₹184.65 and falling to the lows of ₹126.3. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Titagarh Wagons’s current trading price of ₹128.1 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Titagarh Wagons’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Titagarh Wagons

Is Titagarh Wagons still cheap?

Great news for investors – Titagarh Wagons is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is ₹248.9, but it is currently trading at IN₨128.10 on the share market, meaning that there is still an opportunity to buy now. Titagarh Wagons’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

What kind of growth will Titagarh Wagons generate?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to grow by 46.92% over the next year, the near-term future seems bright for Titagarh Wagons. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? Since TWL is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on TWL for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy TWL. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.