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Stock Under Rs 70: Undervalued + High Momentum!
The markets are firing on all cylinders, all thanks to strong GDP growth of 7.6% in Q2 FY24, BJP’s clean sweep in three state elections, and robust support from the US markets. While many stocks might seem to be in high momentum, keeping their valuations in check is important.
Strong momentum in an undervalued stock is generally a good combination for any long portfolio and one stock that satisfies both these criteria is Shradha Infraprojects Limited.
So how did I arrive at this hidden gem?
Firstly, going to the “Stocks on the Rise” strategy in the “Screener section” of InvestingPro+ will give you a list of stocks that are currently in high momentum. The parameters are already there in the screener and you don’t have to do anything.
Image Source: InvestingPro+
From the list of stocks on the move, we need to filter them out based on how much upside potential they are left with, based on their intrinsic value. Now, InvestingPro+ users would be knowing how useful this value is and more importantly, it is also automatically calculated based on different financial models.
One of the many stocks is our Shradha Infraprojects. On the momentum part, the stock is up 21% in the last week and 38% in the last month. So, both the short and medium-term momentum is there.
On the valuation front, the stock has an intrinsic value of INR 90.5, and from the CMP of INR 66.8, that’s a good upside potential of 36%. Now, if you look at the lowest valuation among all 9 financial models is INR 60, which is only 10% lower than the CMP. Keeping this downside-to-upside ratio in consideration gives us a risk-to-reward ratio of almost 1:4.
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X (formerly, Twitter) – aayushxkhanna
CYBER MONDAY SALE: You can avail InvestingPro+ at a massive 60% discount and by using the coupon code PROC324 get an extra 10% discount over and above the ongoing promotional price for the Bi-yearly plan only. Click on the image below to access the link
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