[ad_1]
Sandhar Technologies Limited (NSE:SANDHAR), is not the largest company out there, but it saw significant share price movement during recent months on the NSEI, rising to highs of ₹258 and falling to the lows of ₹203. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Sandhar Technologies’ current trading price of ₹203 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Sandhar Technologies’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for Sandhar Technologies
Is Sandhar Technologies still cheap?
According to my valuation model, Sandhar Technologies seems to be fairly priced at around 1.36% above my intrinsic value, which means if you buy Sandhar Technologies today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth ₹199.78, there’s only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that Sandhar Technologies’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
Can we expect growth from Sandhar Technologies?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to more than double over the next couple of years, the future seems bright for Sandhar Technologies. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? SANDHAR’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping an eye on SANDHAR, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Keep in mind, when it comes to analysing a stock it’s worth noting the risks involved. You’d be interested to know, that we found 2 warning signs for Sandhar Technologies and you’ll want to know about them.
If you are no longer interested in Sandhar Technologies, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Promoted
If you decide to trade Sandhar Technologies, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
[ad_2]
Source link
