Top Undervalued BSE Stocks This Month

Recent undervalued companies based on their current market price include Vallabh Steels and Darjeeling Ropeway. 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.

Vallabh Steels Limited (BSE:513397)

Vallabh Steels Limited manufactures and markets steel pipes, and cold rolled steel strips and coils primarily in India. Established in 1980, and currently run by Kapil Jain, the company provides employment to 143 people and with the company’s market capitalisation at INR ₹161.12M, we can put it in the small-cap group.

513397’s stock is currently trading at -71% beneath its true level of INR112.07, at a price tag of ₹32.55, based on my discounted cash flow model. The divergence signals an opportunity to buy 513397 shares at a low price. What’s even more appeal is that 513397’s PE ratio is currently around 18.81x compared to its Metals and Mining peer level of, 21.29x suggesting that relative to other stocks in the industry, 513397 can be bought at a cheaper price right now. 513397 is also robust in terms of financial health, as current assets can cover liabilities in the near term and over the long run. Finally, its debt relative to equity is 80.09%, which has been reducing over time, revealing 513397’s capacity to pay down its debt. Interested in Vallabh Steels? Find out more here.

BSE:513397 PE PEG Gauge Mar 5th 18
BSE:513397 PE PEG Gauge Mar 5th 18

Darjeeling Ropeway Company Limited (BSE:539770)

Darjeeling Ropeway Company Limited trades and invests in shares and securities. Darjeeling Ropeway was established in 1936 and has a market cap of INR ₹43.71M, putting it in the small-cap group.

539770’s shares are now hovering at around -42% less than its real value of INR24.58, at the market price of ₹14.33, based on my discounted cash flow model. The discrepancy signals an opportunity to buy low. Moreover, 539770’s PE ratio stands at 4.87x while its Capital Markets peer level trades at, 24.49x suggesting that relative to its competitors, 539770’s shares can be purchased for a lower price. 539770 is also strong in terms of its financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. 539770 has zero debt on its books as well, meaning it has no long term debt obligations to worry about. Interested in Darjeeling Ropeway? Find out more here.

BSE:539770 PE PEG Gauge Mar 5th 18
BSE:539770 PE PEG Gauge Mar 5th 18

CL Educate Limited (BSE:540403)

CL Educate Limited engages in the education business. Started in 1996, and currently headed by CEO Gautam Puri, the company size now stands at 376 people and with the market cap of INR ₹3.24B, it falls under the mid-cap group.