A few weeks ago, OSK was a hot stock for a while, after some call it "undervalued", but now it is trading again around the same level and technically it looks interesting, I would say.
Lets see a few basic numbers:
In my opinion, current fair value, by itself only, will not help push the price up, there must be a potential for future improvements and growth - is this the case? Im not sure. Is the current market price fair? I would say it trades with a big discount and agree to tag this stock as "undervalued" with the latest financials, but I prefer to see the next QR to make a conclusion if OSK is improving and there is enough potential to grow significantly going into a future.
Profits seems solid and somehow improving, trailing P/E is right now at 4.8 and, in my opinion, can be easily >9, even 12 I can call "fair", but again there are some *elements*...
On the good side: dividend yield and NAPS.
Anyone who is interested to invest in OSK I would advise to have a really deep look into their financials (and RHB too), I dont want to make this text too long and everyone needs to do their own homework anyway. Btw. EPS and NAPS is not everything.
Undervalued? YES (fair price around RM1)
Good buy? For value investors probably YES, with some "BUT"
Risky? Of course YES! (more to price trap, not too much downside)
Have a look at my TOMEI short article HERE too.
More posts on my BLOG.
disclosure: Im not holding OSK atm
disclaimer: Im not a professional financial advisor or a financial analyst or an economist or accounter.
This is not a trading recommendation / advise, just my personal view