Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
PT Resource Alam Indonesia Tbk, operating alongside its subsidiaries, primarily focuses on coal and methane extraction activities across Indonesia. Beyond these core extractive operations, the company diversifies its business by marketing high-pressure laminate and melamine-laminated particle boards. It also delivers crucial services, including harbor management, electricity provision, and extensive support for mining and excavation projects. Furthermore, its broad portfolio encompasses the wholesale trade of metals and metal ores, engagement in the hydropower plant industry, real estate development, and various trading endeavors. Established in 1981 and headquartered in Jakarta Pusat, Indonesia, the company was formerly known as PT Kurnia Kapuas Utama Tbk before adopting its current name in November 2003.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is 'cheap' on EV/EBITDA, undervalued on P