An Undervalued Stock is stocks that have low price-to-earning ratios and have a high chance to grow in the future. The Indian market has been in the bull market for the last few months.
Currently, elections are held from April to June, so no new policy update regarding the stock market. Indian market indexes like NIFTY and BANK NIFTY gave stellar returns.
The Nifty was up by 26% and bank nifty is at 16% while NIFTY P/E ratio is 23. Currently, the market is not in the overbought phase but from March any bad news can’t affect the market and that is a sign of a bull market and people are greedy now.
We researched and came up with the three best-undervalued stocks that have zero effect on elections. They are in different sectors and industry.
Best 3 Undervalued Stock To Add in Portfolio
Happiest Minds Technologies Limited is a publicly traded company based in India, providing digital transformation and IT consulting services.
Investment in R&D, Given the nature of the tech industry, Happiest Minds probably allocates a portion of its resources towards research and development to stay ahead of technological advancements and offer innovative solutions to its clients. This investment could be crucial for long-term competitiveness and differentiation.
Happiest Minds might have plans for geographical expansion or strategic acquisitions to enter new markets, access new talent pools, or acquire complementary technology or expertise that can enhance their service portfolio.
Rossari Biotech Limited is an Indian specialty chemicals manufacturer that produces a wide range of products for various industries, including textiles, personal care, animal health, and agriculture.
Profitability Metrics, Assessing profitability metrics such as gross profit margin, operating profit margin, and net profit margin can help gauge the company’s efficiency in generating profits from its operations. Comparing these metrics with industry peers can provide context.
Balance Sheet Strength, Examining Rossari Biotech’s balance sheet, including assets, liabilities, and equity, can indicate its financial stability and ability to meet short-term and long-term obligations. Key metrics to consider include debt levels, liquidity ratios, and asset turnover.
Cash Flow Analysis, Analyzing cash flow statements can reveal how effectively Rossari Biotech manages its cash flows from operating activities, investing activities, and financing activities. Positive and consistent cash flows are generally favorable indicators.
SBI Cards and Payment Services Limited, commonly known as SBI Card, is a subsidiary of the State Bank of India (SBI) and one of the leading credit card issuers in India.
Technology and Innovation, Like other players in the fintech industry, SBI Card invests in technology and innovation to enhance its products and services, improve customer experience, and strengthen security measures against fraud and data breaches.
Regulatory Environment, Compliance with regulations from the Reserve Bank of India (RBI) and other regulatory bodies governing the banking and financial services industry is critical for SBI Card. Changes in regulations related to credit card issuance, data protection, and consumer rights can impact the company’s operations and profitability.
Partnerships and Alliances, SBI Card forms partnerships with merchants, airlines, e-commerce platforms, and other organizations to offer co-branded credit cards and promotional offers, driving card usage and customer acquisition.
Expansion and Growth Strategy, SBI Card may pursue growth opportunities through geographic expansion, product innovation, entering new customer segments, or strategic acquisitions.
Competitive Landscape, Analyzing the competitive landscape helps investors understand SBI Card’s strengths, weaknesses, opportunities, and threats relative to other players in the credit card industry.
How To Make A Good Portfolio ?
Making a good portfolio needs deep knowledge of sectors, company analysis, and valuation of stocks. Some people make portfolios based on news and lose money in the market, while others invest only in penny stocks.
Retail investors must take risks according to their appetite. Stock portfolios have a combination of large-cap and small-cap stocks. Large caps lower the portfolio risk and small cap helps to gain more returns on investments.