India Value Invest: Why so much discrepancy?
If I tell you that the first company made 4701 units of a product and the second company made 3597 units of the same product during FY2008-09, don't you think the second company is undervalued compared to the valuation of the first company? The name of the first company is Texmaco and the second one is Titagarh Wagons. The product they make is Railway Wagons. Texmaco earned 75% of its total sales from this segment while Titagarh Wagons earned around 95%. Both the companies' future depends on the spending of Indian Railway and now also private sector container transport companies. But according to me, Titagarh Wagons is undervalued by at least 40% compared to Texmaco.