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Undervalued Stock in India to Watch Out For in 2022

04 October 20226 mins read by Angel One
The principle of value investing is to identify and invest in undervalued stocks. Learn about undervalued Indian stocks you can buy now
Undervalued Stock in India to Watch Out For in 2022
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Investors in the stock market always look for undervalued shares with great potential for growth. Value investing follows the principle where investors buy fundamentally strong undervalued stocks of substantial and high-profile companies and hold them for an extensive period to appreciate. The term value investing was coined by Benjamin Graham, and Warren Buffett is a famous value investor. 

Value investors base their decision on the fundamental analysis of the company. They will buy stocks of quality companies currently trading below their fair price. This article talks about value investing and undervalued stocks to buy now.

Understanding the principle of value investing

While applying the value investing principles, investors search for stocks that are undervalued. These are stocks of fundamentally strong companies currently trading below their congenital price.

Buying undervalued stocks is economical since the company will eventually grow, and their share price will rise. Value investors opt for the opportunity to gain maximum returns. 

Value investing involves the following steps.

  • Investors find the best-undervalued stocks to buy through detailed research and analysis. It involves finding fundamentally strong companies with a potential for long-term growth. 
  • After picking the stock, investors buy them at a lower market price.
  •  They will hold the stock till the price appreciates and earns handsome returns.

Each stock has an inherent value determined by investors after fundamental analysis. If you can purchase undervalued stocks in India at a discount rate, you can earn a significant return by selling them when they attain their actual price. 

Let’s look at the best undervalued stocks which you can buy.

Globus Spirit Ltd.

Globus Spirit shares are one of the undervalued Indian stocks to buy now. The company operates in the verticals of India-made Indian liquor (IMIL), India-made foreign liquor (IMFL), IMFL bottling and bulk alcohol. 

The current P/E ratio of the stocks is below the market average. You can track Globus Spirit share price on Angel One.

Vindhya Telelink Ltd.

The company is a leading manufacturer of jelly-filled and optical fibre telecommunication cables. The small company comes with lots of positives and the potential to grow. The current P/E ratio of the stocks is below the industry average, which makes it a potential undervalued Indian stock.  

Track the price of Vindhya Telelink share on Angel One.

UPL Ltd.

UPL is the largest India-based agricultural company, manufacturing crop protection products, intermediaries, and speciality chemicals. The Indian MNC is one of the top five global players in the agrochemical domain, with its products being sold in 138 countries.

It is one of the best undervalued stocks to buy now. Follow UPL Ltd share price on Angel One’s website.

Ashoka Metcast Ltd. 

The company trades and manufactures structural steel products like TMT bars, MS bars etc. The shares of Ashoka Metcast are currently trading below the industry average. 

Ashoka Metcast Ltd. is one of the top undervalued stocks for buying. 

Follow Ashoka Metcast share price on Angel One.   

ICICI Securities Ltd.

ICICI Securities Ltd. is a leading technology-based firm offering various financial services, including institutional broking, investment banking and private wealth management. The company is a subsidiary of ICICI Bank Ltd.

ICICI Direct is the award-winning proprietary electronic brokerage platform of the company.

ICICI Securities is one of the fundamentally solid and best-undervalued stocks to buy for long-term investment. Track ICICI Securities share price on Angel One’s website.

Final words

Value investing is for everyone. You don’t need extensive knowledge of economics or educational degrees to become a successful value investor. But you must be ready to research extensively for the top under valued stocks in the market.

Value investing helps you grow wealth. The aim is to generate long-term returns and ignore short-term fluctuations. Like the list of best-undervalued stocks to buy, explore more financial options with Angel One. Open a free online Demat account today.  

Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and are not recommendatory.

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