Companies, such as Shetron, trading at a market price below their true values are considered to be undervalued. Smart investors can make money from this discrepancy by buying these shares, because they believe the current market prices will eventually move towards their true value. If you’re looking for capital gains in your next investment, I suggest you take a look at my list of potentially undervalued stocks.

Shetron Limited (BSE:526137)

Shetron Limited manufactures and sells metal packaging products for the food industry primarily in India. Founded in 1980, and currently headed by CEO Kartik Nayak, the company currently employs 197 people and with the company’s market capitalisation at INR ₹458.27M, we can put it in the small-cap group.

526137’s shares are now trading at -49% under its actual value of INR100.36, at the market price of ₹50.90, according to my discounted cash flow model. The discrepancy signals an opportunity to buy low. Also, 526137’s PE ratio is trading at 18.27x against its its Packaging peer level of, 18.91x meaning that relative to its peers, we can purchase 526137’s shares for cheaper. 526137 is also robust in terms of financial health, as current assets can cover liabilities in the near term and over the long run. It’s debt-to-equity ratio of 168.69% has been dropping over time, indicating 526137’s capability to reduce its debt obligations year on year. More on Shetron here.

Vijay Shanthi Builders Limited (BSE:523724)

Vijay Shanthi Builders Limited engages in the real estate development business in Chennai, India. Started in 1977, and run by CEO Chandan Jain, the company size now stands at 70 people and has a market cap of INR ₹509.37M, putting it in the small-cap stocks category.

523724’s stock is currently floating at around -41% below its actual worth of INR33.16, at the market price of ₹19.45, based on its expected future cash flows. signalling an opportunity to buy the stock at a low price. Furthermore, 523724’s PE ratio is trading at around 10.79x against its its Real Estate peer level of, 23.79x meaning that relative to its comparable set of companies, 523724 can be bought at a cheaper price right now. 523724 is also a financially robust company, with current assets covering liabilities in the near term and over the long run.

Dig deeper into Vijay Shanthi Builders here.

Yogi Infra Projects Limited (BSE:522209)

Yogi Infra Projects Limited engages in the infrastructure construction activities in India. Yogi Infra Projects was founded in 1993 and with the company’s market cap sitting at INR ₹33.86M, it falls under the small-cap category.