January Top Cheap Stock To Invest In
Oswal Agro Mills and Ajanta Soya are two of the stocks I have identified as undervalued. This means their current share prices are trading at levels less than what the companies are actually worth. 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.
Oswal Agro Mills Limited (BSE:500317)
Oswal Agro Mills Limited engages in real estate, investing, and trading activities in India. Oswal Agro Mills was started in 1979 and has a market cap of INR ₹2.05B, putting it in the mid-cap category.
500317’s shares are now trading at -81% below its true level of INR81.68, at a price of INR15.25, based on my discounted cash flow model. This discrepancy signals a potential opportunity to buy 500317 shares at a low price. Moreover, 500317’s PE ratio stands at 6.6x relative to its real estate peer level of 28.2x, meaning that relative to other stocks in the industry, we can buy 500317’s stock at a cheaper price today. 500317 is also in great financial shape, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. 500317 has zero debt on its books as well, meaning it has no long term debt obligations to worry about. Interested in Oswal Agro Mills? Find out more here.
Ajanta Soya Limited (BSE:519216)
Ajanta Soya Limited manufactures and sells Vanaspati and refined oils in India. Started in 1992, and now run by Sushil Goyal, the company now has 103 employees and with the stock’s market cap sitting at INR ₹1.12B, it comes under the small-cap stocks category.
519216’s stock is currently floating at around -73% beneath its actual worth of INR254.74, at a price of INR69.55, based on its expected future cash flows. The discrepancy signals an opportunity to buy low. Moreover, 519216’s PE ratio is trading at around 16.6x relative to its food peer level of 25.5x, suggesting that relative to its competitors, we can buy 519216’s stock at a cheaper price today. 519216 also has a healthy balance sheet, as short-term assets amply cover upcoming and long-term liabilities.
Dig deeper into Ajanta Soya here.
Karuturi Global Limited (BSE:531687)
Karuturi Global Limited, together with its subsidiaries, produces, sells, and exports cut roses in India and internationally. Karuturi Global was formed in 1994 and with the company’s market capitalisation at INR ₹4.16B, we can put it in the mid-cap group.
531687’s shares are currently floating at around -48% less than its actual worth of INR5.36, at a price of INR2.78, based on my discounted cash flow model. This discrepancy signals a potential opportunity to buy 531687 shares at a low price. In terms of relative valuation, 531687’s PE ratio stands at around 6.1x relative to its food peer level of 25.5x, suggesting that relative to its comparable company group, we can purchase 531687’s shares for cheaper. 531687 is also robust in terms of financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. The stock’s debt-to equity ratio of 7% has been diminishing over the past couple of years demonstrating 531687’s ability to pay down its debt. More on Karuturi Global here.
For more financially sound, undervalued companies to add to your portfolio, you can use our free platform to explore our interactive list of undervalued stocks.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
