Insas & TA - Cheap Valuations


 Based on latest price @ 8 Sept:

Insas @ 1.02, P/E = 3.74x & P/BV = 0.44x

TA @ 0.675, P/E = 3.75x & P/BV = 0.46x

Based on the above valuation metrics, we can observed both stocks are trading at extremely cheap valuations, and thus presents an attractive investment for investors looking for value.

Both stocks qualify as earnings-based play - low P/E and assets-based play - low P/BV.

A look at their balance sheets, you will notice that there is much hidden value yet to be reflected in their respective share price. For instance, Insas's 20% stake in Inari (latest market cap - RM5,116million) alone translates to RM1.39 per share, above their current share price of 1.02. On top of that, Insas owns Ho Hup (13%), Omesti (10%) and SYF Resources (9%) - all recorded at BV in the balance sheet, in addition to cash & cash equivalents of RM0.72 per share.




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