Value Stock Significantly Undervalued

Hi all,

Would love to get your feedback and please do your own research before investing.
I believe Shriro is significantly undervalued for the following reasons:

Fundamentals:
Market cap 85million at present
NPAT range: 15-17million of which 6million is one off.
Normalised NPAT: 9-11million for FY20
There is 10-12million NPAT since the last results so take off 10mill from the market cap as that will be added to the balance sheet/distributed as a special dividend and you are currently looking at a Market cap of 73-75million for a company that is making 9-11million NPAT. This gives a PE ratio of 6.6 to 8.5 for a growth stock.

In the past when the stock was making 9-11million NPAT it was around $1.20 per share in a high interest environment. In a low interest environment you can add another 20% as you should expect a lower yield on stocks and higher PE ratio - takes it to $1.42. Not to mention the growth that is being seen in New Zealand, BBQ range, housebuilding projects etc. Most of the growth has occurred in the last 9months. If we say that growth is there for an extra 3months you are probably looking at normalised NPAT of 10.5-12.5million.

All I can say is that this is an exciting time for Shriro. Patient is the key for shareholders.

Share price target: above $1.42. Good luck all and keep up the great work management.

If anyone has any bargain stocks with a low PE please share as I am in this company and in Cashconverters and struggling to find others.