Undervalued companies, such as Nitiraj Engineers and Accord Synergy, are those that trade at a price below their actual values. 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.

Nitiraj Engineers Limited (NSEI:NITIRAJ)

Nitiraj Engineers Limited manufactures and sells a range of electronic weighing scales and systems, currency counting machines, and electronic fare meters for industrial and domestic consumption. Established in 1989, and run by CEO Rajesh Bhatwal, the company employs 307 people and with the company’s market capitalisation at INR ₹533.05M, we can put it in the small-cap category.

NITIRAJ’s shares are now hovering at around -85% less than its value of INR437.18, at a price of ₹65.00, based on its expected future cash flows. This mismatch indicates a potential opportunity to buy low. In terms of relative valuation, NITIRAJ’s PE ratio stands at around 11.58x while its Electronic peer level trades at, 37.66x meaning that relative to its comparable set of companies, we can buy NITIRAJ’s stock at a cheaper price today. NITIRAJ also has a healthy balance sheet, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. NITIRAJ also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. Dig deeper into Nitiraj Engineers here.

Accord Synergy Limited (NSEI:ACCORD)

Accord Synergy Limited provides support services to the telecom industry through sub-contracting basis in India. Accord Synergy was formed in 2014 and has a market cap of INR ₹152.77M, putting it in the small-cap category.

ACCORD’s shares are now trading at -67% less than its true level of INR132.63, at a price tag of ₹44.00, according to my discounted cash flow model. The mismatch signals a potential chance to invest in ACCORD at a discounted price. Furthermore, ACCORD’s PE ratio stands at 3.86x compared to its Commercial Services peer level of, 32.73x meaning that relative to its competitors, you can buy ACCORD for a cheaper price. ACCORD is also strong in terms of its financial health, with short-term assets covering liabilities in the near future as well as in the long run.

Interested in Accord Synergy? Find out more here.

Khoobsurat Limited (BSE:535730)

Khoobsurat Limited engages in the trade of textiles in India. Khoobsurat was formed in 1982 and has a market cap of INR ₹26.57M, putting it in the small-cap group.