A stock trading at a discount gives investors the opportunity to buy quality assets for less than they’re really worth. This happens when the market price doesn’t fully reflect the company’s solid financial health, growth potential, or competitive strengths. As the market corrects itself over time, these stocks could offer significant gains in the long run.
Motherson Sumi Wiring India Ltd
Motherson Sumi Wiring India Ltd is a specialized, full-system solutions provider catering to a diverse range of customers in the automotive and other industries. The Company is engaged primarily in the manufacture and sale of components to automotive original equipment manufacturers.
The company hit its 52-week high in June 2024 at Rs.80.00 apiece and, comparing the same with the current stock price of Rs 56.66, there is a discount of approximately 29 percent.
With a market capitalisation of Rs 24,435 crores, the company holds an ROE of 40.82 percent and an ROCE of 45.85 percent in Q2FY24. In terms of liquidity ratio, the company has a debt to equity ratio of 0.17.
NBCC Ltd.
NBCC, formerly known as National Buildings Construction Corporation is a public sector undertaking (PSU) company under the Ministry of Housing and Urban Affairs, Government of India.
The company’s present areas of operations are categorized into three main segments, i.e. Project Management Consultancy (PMC), Real Estate Development and EPC Contracting. NBCC has been executing many Landmark Projects as a PMC which contributes to about 90 percent of its annual revenue.
The company hit its 52-week high in August 2024 at Rs.139.90 apiece and, comparing the same with the current stock price of Rs 87.90, there is a discount of approximately 37 percent.
With a market capitalisation of Rs 21,308 crores, the company holds an ROE of 23.85 percent and an ROCE of 31.72 percent in Q2FY24.With a debt-to-equity ratio of 0, the company proudly maintains a debt-free status.
Suzlon Energy Ltd.
Suzlon Energy Ltd. is India’s largest renewable energy solutions provider with presence in 17 countries across six continents. The company is engaged in the business of design, development, manufacturing and supply of wind turbine generators (WTGs). The Company has a strong presence across the entire wind value chain with a comprehensive range of services to build and maintain the projects, which include design, supply, installation, commissioning of the project.
The company hit its 52-week high in September 2024 at Rs.86.04 apiece and, comparing the same with the current stock price of Rs 57.10, there is a discount of approximately 34 percent.
With a market capitalisation of Rs 73,655 crores, the company holds an ROE of 21.35 percent and an ROCE of 20.69 percent in Q2FY24. In terms of liquidity ratio, the company has a debt to equity ratio of 0.06
Cupid Ltd
Cupid Limited, a leading manufacturer & supplier of quality Male & Female Condoms was incorporated as a Public Limited Company in 1993 with the Registrar of Companies, Maharashtra and listed on BSE (Bombay stock Exchange) in 1995 .
The company’s modern facility has a current capacity of over 500 million pieces per year for Male Condoms and 25 million pieces per year for Female Condoms. Its manufacturing facility is located at Sinnar near Nashik, about 200 Km. East of Mumbai.
Cupid Ltd hit its 52-week high in March 2024 at Rs.140.00 apiece and, comparing the same with the current stock price of Rs 72.19, there is a discount of approximately 48 percent.
With a market capitalisation of Rs 1,874.97 crores, the company holds an ROE of 15.87 percent and an ROCE of 21.08 percent in Q2FY24. In terms of liquidity ratios, the company has a debt-to-equity ratio of 0.05.
NMDC
NMDC Ltd., a prestigious Navratna Public Sector Enterprise (PSE) under the esteemed Ministry of Steel, Govt. of India, stands tall as the nation’s foremost producer of iron ore. With highly advanced and mechanized iron ore mines in Chhattisgarh and Karnataka, NMDC holds the position of a global leader in cost-effective iron ore production.
The company hit its 52-week high in May 2024 at Rs.95.45 apiece and, comparing the same with the current stock price of Rs 65.44, there is a discount of approximately 31 percent.
With a market capitalisation of Rs 52,777 crores, the company holds an ROE of 21.43 percent and an ROCE of 26.51 percent in Q2FY24. In terms of liquidity ratios, the company has a debt-to-equity ratio of 0.15.
Written by Shwetha Sairam
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