‘Undervalued’ is a financial term that is generally referred to a security that is selling for a price presumed to be below the investment’s ‘true intrinsic value’. Listed below are three such undervalued stocks under the ‘small-cap’ category that portrayed a net profit CAGR of up to 60 percent over three years:
Gujarat Ambuja Exports Limited
With a market capitalization of Rs 8,623.01 crores, the stocks of Gujarat Ambuja Exports Limited, engaged in the business of manufacturing corn starch derivatives, feed ingredients, cotton yarn, etc, closed at Rs 376 on Thursday, slipping around 1 percent as compared to the previous closing levels of Rs 380.05 apiece.
The company’s stock portrays a price-to-earnings (P/E) ratio of 28.58 which is comparatively less than the price-to-earnings ratio of the industry, viz, 60.81.
Having a walkthrough of the company’s financials, the operating revenues as well as net profits showcased an increase in numbers over a three-year period, i.e., shifting from Rs 146 crores during FY19-20 to Rs 330 crores during FY22-23 exhibiting a compounded annual growth of approximately 31.24 percent.
HBL Power Systems Limited
With a market capitalization of Rs 10,931.18 crores, the stocks of HBL Power Systems Limited, engaged in the business of manufacturing and servicing different types of batteries, e-mobility, etc, closed at Rs 394.35 on Thursday, gaining around 1 percent as compared to the previous closing levels of Rs 390.65 apiece.
The company’s stock portrays a price-to-earnings (P/E) ratio of 60.47 which is comparatively less than the price-to-earnings ratio of the industry, viz, 62.84.
Having a walkthrough of the company’s financials, the operating revenues as well as net profits showcased an increase in numbers over a three-year period, i.e., shifting from Rs 26 crores during FY19-20 to Rs 98 crores during FY22-23 exhibiting a compounded annual growth of approximately 55.63 percent.
Aegis Logistics Limited
With a market capitalization of Rs 13,197.60 crores, the stocks of Aegis Logistics Limited, engaged in the business of import and distribution of Liquified Petroleum Gas (LPG), closed at Rs 376 on Thursday, gaining around 5.20 percent as compared to the previous closing levels of Rs 357.45 apiece.
The company’s stock portrays a price-to-earnings (P/E) ratio of 24.65 which is comparatively less than the price-to-earnings ratio of the industry, viz, 63.19.
Having a walkthrough of the company’s financials, the operating revenues as well as net profits showcased an increase in numbers over a three-year period, i.e., shifting from Rs 134 crores during FY19-20 to Rs 511 crores during FY22-23 exhibiting a compounded annual growth of approximately 56.23 percent.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
