During this market uncertainty, when big companies are failing to perform as per market expectations, several companies are there which posted a good growth in revenue and profitability but are still trading at a lower valuation. In this article, we will look at three companies that fulfill these criteria.
1. Shilchar Technologies
Shilchar Technologies Limited is an Indian transformer and associated components manufacturer. It makes power and distribution transformers, and electronic and telecommunication transformers applied in solar, wind, and other power industries. It exports its products and has a diversified client base covering private utilities, renewable energy companies, EPC contractors, and sugar, steel, and hydrocarbon industries.
It reported a revenue of Rs 623 crores in FY25, up by 56 percent, from its FY24 revenue of Rs 397 crores. It reported a net profit of Rs 147 crores in FY25, up by 60 percent, from its FY24 net profit of Rs 92 crores.
The stock is currently trading at Rs 6,788, down by 23.7 percent from its 52-week high of Rs 8,899. It has a P/E ratio of 34.99x, lower than the industry average of 53.93x, signalling undervaluation.
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2. Justdial
Just Dial Limited is an Indian local search engine firm providing search and software services through the web, mobile, phone, and SMS. Its major platforms are the JD app for business discovery, JD Mart for B2B trade, JD Pay for digital payments, and JD Xperts for on-demand services. In addition, the firm offers business management tools, analytics, and website creation tools.
It reported a revenue of Rs 1,142 crores in FY25, up by 9 percent, from its FY24 revenue of Rs 1,043 crores. It reported a net profit of Rs 584 crores in FY25, up by 61 percent from its FY24 net profit of Rs 363 crores.
The stock is currently trading at Rs 941, down by 32.5 percent from its 52-week high of Rs 1,395. It has a P/E ratio of 13.71x, much lower than the industry average of 46.13x, signalling undervaluation.
3. GNA Axles
G N A Axles Limited produces and markets auto parts such as rear axle shafts, spindles, and drive shafts. The company serves commercial vehicles, SUVs, and off-highway vehicles and has operations in North and South America, Europe, Asia, and Australia. It was established in 1993.
It reported a revenue of Rs 1,540 crores in FY25, up by 2 percent, from its FY24 revenue of Rs 1,506 crores. It reported a net profit of Rs 107 crores in FY25, up by 7 percent, from its FY24 net profit of Rs 100 crores.
The stock is currently trading at Rs 339, down by 31.3 percent from its 52-week high of Rs 494. It has a P/E ratio of 13.60x, lower than the industry average of 25.78x, signalling undervaluation.
Written by Satyajeet Mukherjee
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