Stock Under Rs 70: Undervalued + High Momentum!

  • Market Overview

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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  • Mannish kakka @Mannish kakka
    ye stock kyu itna correct ho raha bhai?
    Like 1
    • Sudipto Roy @Sudipto Roy
      This type of report is part of a racket. Don't fall prey into such traps. Promoters of such junk companies pay money for such reports and dump their stock. I had made a comment indicating this. This is a junk company. Stop your loss.
      Like 0
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  • ashok kumar @ashok kumar
    Wonderful analysis by Aayush Ji in most of the stocks.. great work by you.. plz give stock option advices.. target and stoploss
    Like 0
  • Durga Prasad @Durga Prasad
    your thoughts on unitech? I have 5 lakh shares @10 rs
    Like 0
  • virendra lunia @virendra lunia
    Your thoughts on L&T
    Like 0
  • Daryab Singh @Daryab Singh
    thanks
    Like 0
  • Guru KCG @Guru KCG
    very cheap tactics for subscription, not at all standard approach expected from Investment.com
    Like 2
  • KRISHNA REDDY MALKAREDDY @KRISHNA REDDY MALKAREDDY
    How the risk to reward ratio 1:4 is calculated in this case
    Like 0
    • Aayush Khanna @Aayush Khanna
      @KRISHNA REDDY MALKAREDDY Approx. INR 6 downside and INR 24 upside.
      Like 0
    • KRISHNA REDDY MALKAREDDY @KRISHNA REDDY MALKAREDDY
      Thank you very much to clear my doubt
      Like 0
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  • Sudipto Roy @Sudipto Roy
    A desperate attempt to push the screener for whic a subscription is necessary. Such articles will harm your credibility, Mr Khanna. Credibility is something that takes years to build and moments to lose.
    Like 7
    • Aayush Khanna @Aayush Khanna
      @Sudipto Roy The stock is up 15% today. Still looking for more credibility?
      Like 2
    • Sudipto Roy @Sudipto Roy
      one swallow doesn't make a summer. When the high tide rises, it is usually the crap that floats up first.
      Like 1
    • Sudipto Roy @Sudipto Roy
      @Aayush Khanna today after 2 weeks what is the scene?
      Like 0
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  • Pawan Jat @Pawan Jat
    Market cap is 138cr only
    Like 1
    • deepak agarwala @deepak agarwala
      @Pawan Jat revenue down
      Like 0
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  • Veeresh Capt @Veeresh Capt
    Has only 13 employees?? Looks obscure. Had taken Diligent Media (DNA) after you covered it here and now am stuck as its not tradeable?
    Like 14
    • Vidhan Chandra Roy @Vidhan Chandra Roy
      Where’s stocks on the rise? Didn’t find…
      Like 0
    • varun 007 @varun 007
      haha
      Like 0
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