Undervalued stocks are equity shares that have a market value that is lower than their true intrinsic value. Moreover, the process of investing in such undervalued stocks is called ‘Value Investing’.
Listed below are 3 undervalued stocks that investors should keep an eye on:
UPL Limited
UPL Limited is a global crop protection and seed company with the sale of products to the agricultural industry. The company generates its revenue across the globe with sales in over 120 countries. The firm sells its products through a distribution network covering all the regions.
The company has a market capitalization of Rs 50,100 crores and its stock closed at a price of Rs 668, around 0.80 percent down as compared to the previous closing price of Rs 673.35.
The company’s Price to Equity (P/E) ratio stands at 13.7 which is lower than the industry P/E ratio currently standing at 23.5. Moreover, the Price to Book Value (P/B) ratio of the company is 1.68 which is lesser than the industry P/B ratio of 3.33.
Polyplex Corporation Limited
Polyplex Corporation Limited is a company based in India that is engaged in the manufacturing process of plastic films. The company diversifies its business under Cast Polypropylene films, Polyethylene Terephthalate films, and Biaxially Oriented Polypropylene.
The company’s products act as raw materials for applications in the industrial, packaging, electrical, and many other segments. Geographically, it derives a majority of its revenue from overseas operations.
The company has a market capitalization of Rs 4,932 crores and its stock closed at a price of Rs 1,574, around 2.1 percent down as compared to the previous closing price of Rs 1,607.70.
The company’s Price to Equity (P/E) ratio stands at 9.37 which is lower than the industry P/E ratio currently standing at 18.6. Moreover, the Price to Book Value (P/B) ratio of the company is 1.39 which is lesser than the industry P/B ratio of 1.44.
Vindhya Telelinks Limited
Vindhya Telelinks Limited is engaged in the manufacturing and selling process pertaining to all types of railway signaling and quad cables, telecommunication cables, other types of wires and cables, etc. It operates through two business segments namely ‘Engineering Procurement and Construction’ (EPC) and ‘Cable’ segment.
The Company’s product portfolio includes copper telecom cables, optical fiber cables, power cables, and specialty cables.
The company has a market capitalization of Rs 2,352 crores and its stock closed at a price of Rs 1,972, around 4 percent down as compared to the previous closing price of Rs 2,050.45.
The company’s Price to Equity (P/E) ratio stands at 12.7 which is lower than the industry P/E ratio currently standing at 31.5. Moreover, the Price to Book Value (P/B) ratio of the company is 0.69 which is lesser than the industry P/B ratio of 1.70.
Written by Amit Madnani
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