The ASX Stocks that Continue to be Underrated

These underrated stocks in the ASX have started performing well, led by customer acquisition and good results.
These companies have delivered a strong result led by contract acquisition, improved customer base and upgraded management guidance, which increase companies’ chances to have high revenue growth and future cash flow generation.

Kelly Partners Group Holdings Limited (ASX: KPG)

Kelly Partners Group Holdings Limited (ASX: KPG) is one of the underrated ASX stocks with a market capitalisation of $185.63M.

KPG announced on 11 February 2026, its half yearly result ended in December 2026 stating that the revenue increased by 17% YoY to $76M. The current annual revenue run rate for the group is $164.2M, making KPG achieve a 30.3% CAGR since the inception and a 34.9% CAGR growth on adjusted book value since inception.

The company has delivered strong operational performance with an underlying EBITDA increase of 10.8% to $19.3M, with an EBITDA margin of 25.4% and a 27.6% EBITDA margin through operating businesses. KPG has reported a statutory NPAT of $8.3M with an NPATN margin of 18.7%.

The company has reported a CFO pre-AASB 16 of $15.5M, up 6.5% YoY, and net debt increased by 31.9% to $77.1M. KPG has reported a return on equity (ROE) of 38.1% and return of capital employed (ROIC) of 20.8%, with a cash conversion ratio of 101.1%.

Lycopodium Limited (ASX: LYL)

Lycopodium Limited (ASX: LYL) is one of the underrated industrial ASX stocks with a market capitalisation of $711.75M and a fully franked dividend yield of 2.62%.

LYL has announced on 29 July 2026 that the company has received a detailed engineering services contract for the proposed Pilgangoora plant expansion project. LYL has to deliver the Front-End Engineering Design (FEED) for the Wet Plant for PLS to progress to the final investment decision (FID) for the P2000 Expansion Project at the Pilgangoora Operation in Western Australia. The contract is valued at $22M with work commencing immediately.

The P2000 Expansion Project, if approved by PLS, will involve the construction of a new processing plant to expand the production capacity to approximately 2 million tonnes per annum of lithium spodumene concentrate.

Superloop Limited (ASX: SLC)

Superloop Limited (ASX: SLC) is one of the underrated communication services ASX stocks with a current market capitalisation of $1.64B.

 SLC has announced, on 3 June 2026, on their investor day, regarding the business highlights and outlook for FY26. The company highlights that its customer base increased by 66k in Q3 to 890.2M, in which the wholesale improved further, reaching 302.3M, an increase of 35.1k in Q3, followed by 28k for consumers and 3.3k for business.

The management highlights an improvement in the guidance of underlying EBITDA to $118-$122M, representing 28-32% growth over FY25 and a revenue run rate on track for FY26. SLC has given guidance of $34-$37M for capex in FY26. The company also expects a positive NPATA and net profit for FY26, led by operational efficiency. The management has also introduced its SuperCharge 2029 strategy targeting organic growth, cost efficiency, and smart communication, led by disciplined capital management.

Sources: (Company Announcements)