Top 3 breakout stocks to watch out (one of them looks undervalued)

livemint.com:

undervalued stocks available at a good bargain. These stocks not only offer a safety margin in their valuations but also show promising signs of aligning with the market's upward momentum, potentially heralding a prolonged bullish phase. This scenario presents a potential win-win if navigated astutely.

Let's focus on three such stocks: Part of the Ganesh Group, founded in 1991, this company has solidified its presence in and around Ahmedabad. It boasts one of the largest developable land banks in the city, spanning 500 acres, and focuses on residential projects targeting mid to high-income segments, alongside ventures into commercial, retail, and township projects. On Friday, the company's shares soared 20%, hitting a new all-time high of ₹610 on the BSE, following a remarkable performance in the third quarter of FY24.

Sales skyrocketed to ₹1.8 billion, a 171.4% increase, while net profit surged a massive 376% to touch ₹1 billion. Remarkably debt-free since a peak of ₹6.5 billion in FY19, the company's ongoing projects like Million Minds Phase 1 (IT SEZ) are progressing well, with robust cash inflows expected from upcoming ventures, the management said in an earnings presentation. With the Union Budget 2024 on the horizon, positive sector and homebuyer incentives could further boost the company's prospects.

Full-year performance for FY24 will likely be robust as well, as earnings and sales have surged, with one full quarter remaining. Shares of Ganesh Housing traded at a PE multiple of 12.9x, compared to its 5-year average of 23.6x. If we look at the price to book value (P/BV) multiple, the stock traded at a P/BV multiple of 3x compared to 5-year average of 1x.