The 5 Most Undervalued Stocks Of India


Undervalued Stocks Of India: Value Investing is a method that even big investors like Warren Buffett use in order to grow their money, in this method traders work on identifying companies that are trading below or above their intrinsic value.

Stock trading below their intrinsic value are considered as undervalued stocks, which simply means they have relatively better chances of growth.

5 Most Undervalued Stocks Of India

Below are India’s top 5 undervalued stocks which have higher chances of growth:

Bedmutha Industries Limited

Undervalued Stocks Of India: Bedmutha Industries Limited is a company in the iron and steel products sector. The total valuation (market value) of the company is ₹243 crore. The price of one share of the company is ₹79.15 in BSE market and ₹79.50 in NSE market . Bedmutha Industries Limited was established in the year 1990.

As per the report provided by the company, the total income for the last year stood at Rs 519.601 crore and the total sales were Rs 490.513 crore. The company’s net profit stood at Rs-70.862 crore.

PROS:

  • The company has reduced debt.
  • The company expects a good quarter
  • The company has achieved decent earnings growth of 47.25% CAGR in the last 5 years

CONS:

  • The company has achieved poor sales growth of -5.00% in the last five years.
  • The promoters have promised 95.06% of their participation.
  • The income includes other income of Rs 331.44 crore.
  • Loan days have increased from 47.50 to 58.59 days.
  • Promoter participation has declined in the last 3 years: -14.27%

Sportking India

Undervalued Stocks Of India: Sportking India is a company in the textile sector. The total valuation (market value) of the company is ₹0. The price of one share of the company is ₹ 999.00 in the BSE market and is not listed on the NSE market. Sportking India was established in the year 1989.

As per the report provided by the company, the total income for the last year stood at Rs 1,162.505 crore and the total sales were Rs 1,160.466 crore. The company’s net profit stood at Rs 24.02 crore. Sportking India has paid tax of Rs-25.704 crore in the current year.

PROS:

  • The company is expected to have a good quarter
  • The company has achieved good earnings growth of 79.80% CAGR over the last 5 years
  • The company has a good return on equity (ROE) track record: 3 years ROE 53.34%

CONS:

  • Although the company frequently reports earnings, it is not paying dividends.
  • The company can capitalize the interest cost.

Exide Industries Limited

Undervalued Stocks Of India: Exide Industries Limited (Exide Inds) is a company in the auto parts and equipment sector. The total valuation (market value) of the company is ₹11,985 crore. The price of one share of the company is ₹ 143.75 in BSE market and ₹ 143.65 in NSE market. Exide Industries Limited was established in the year 1947.

As per the report provided by the company, the total income for the last year stood at Rs 9,920.6 crore and the total sales were Rs 9,856.66 crore. The company’s net profit stood at Rs 825.51 crore. Exide Industries Limited has paid tax of Rs-249.42 crore in the current year.

PROS:

  • The company is going to debt free soon.
  • Stock is increased to 1.13 times its book value
  • Company made decent profit growth of 40.37% CAGR in past 5 years
  • Company has got good return on equity (ROE) track record: 3 Years ROE 26.96%
  • The company is maintaining a good dividend payout of 24.55%

CONS:

  • The sales growth of the company is 2.73% over past five years (which is poor).
  • Tax rate are low
  • The company’s earning include an other income of Rs.3724.60 Cr.

Manali Petrochemical Limited

Undervalued Stocks Of India: Manali Petrochemical Limited (Manali Petro) is a company in the petrochemicals sector. The total valuation (market value) of the company is ₹ 1,746 crore. The price of one share of the company is ₹ 105.65 in BSE market and ₹ 106.00 in NSE market. Manali Petrochemical Limited was established in the year 1986.

As per the report provided by the company, the total income for the last year was Rs.685.382 crore and the total sales were Rs.676.64 crore. The company’s net profit stood at Rs 38.64 crore. Manali Petrochemical Limited has paid tax of Rs -12.515 crore in the current year.

PROS:

  • Company is going to be debt free soon.
  • It is expected that the company will give good quarters.
  • The company has achieved a decent profit growth of 34.75% CAGR over last 5 years
  • Company has been paying healthy dividends of 19.11%

CONS:

  • The company has a sales growth of 11.98% over past five years (which is poor).

INEOS Stimulation India Ltd.

Undervalued Stocks Of India: INEOS Stimulation India Ltd. (INEOS Styrolution) is a specialized chemical sector company. The total valuation (market value) of the company is ₹ 1,335 crore. The price of one share of the company is ₹ 759.80 in BSE market and ₹ 758.95 in NSE market. INEOS Stimulation India Ltd was established in the year 1973.

As per the report provided by the company, the total income for the last year stood at Rs 1,585.782 crore and the total sales stood at Rs 1,578.999 crore. The company’s net profit stood at Rs -9.523 crore. INEOS Stimulation India Ltd. has paid tax of Rs 2.077 crore in the current year.

PROS:

  • Company has less debt then before.
  • Soon company will become debt free.
  • It is expected from the company to give good quarter
  • Company has made a decent profit growth of 34.12% CAGR over last 5 years

CONS:

  • The company has a sales growth of 0.59% over past five years (which is poor).
  • The debtor days of the company has gone from 49.81 to 68.45 days.

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