IST and Aries Agro are two of the companies on my list that I consider are undervalued. Investors can benefit from buying these companies while they are discounted, because they gain when the market prices move towards the stocks’ true values. Below is a list of stocks I’ve compiled that are deemed undervalued based on the latest financial data.
IST Limited (BSE:508807)
IST Limited manufactures and sells automotive components in India. IST was formed in 1976 and with the stock’s market cap sitting at INR ₹5.22B, it comes under the mid-cap category.
508807’s stock is now trading at -48% lower than its real value of INR1719.85, at a price of ₹895.70, based on its expected future cash flows. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. Also, 508807’s PE ratio is around 6.39x while its Auto Components peer level trades at, 27.78x indicating that relative to its comparable set of companies, you can purchase 508807’s stock for a lower price right now. 508807 is also in great financial shape, with current assets covering liabilities in the near term and over the long run. 508807 also has a miniscule amount of debt on its balance sheet, which gives it headroom to grow and financial flexibility. More on IST here.
Aries Agro Limited (BSE:532935)
Aries Agro Limited, together with its subsidiaries, manufactures and supplies micronutrients and other customized nutritional products for plants and animals in India. Aries Agro was established in 1969 and with the company’s market cap sitting at INR ₹2.29B, it falls under the mid-cap group.
532935’s shares are now floating at around -43% less than its actual worth of INR308.11, at a price tag of ₹176.25, based on my discounted cash flow model. signalling an opportunity to buy the stock at a low price. Furthermore, 532935’s PE ratio is trading at 19.92x compared to its Chemicals peer level of, 21.32x suggesting that relative to other stocks in the industry, we can invest in 532935 at a lower price. 532935 is also a financially healthy company, with near-term assets able to cover upcoming and long-term liabilities. The stock’s debt-to-equity ratio of 77.07% has been reducing for the past few years showing 532935’s ability to reduce its debt obligations year on year. More on Aries Agro here.
Kiri Industries Limited (BSE:532967)
Kiri Industries Limited manufactures and sells dyes, dyes intermediates, and basic chemicals in India. Kiri Industries was founded in 1998 and with the company’s market capitalisation at INR ₹12.58B, we can put it in the large-cap group.