Investing in stocks across Asia and Africa in 2025 means balancing exciting growth stories with real macro and currency risks. For long-term investors and value hunters, some well-known companies are trading below what many analysts and screens suggest are fair prices — a potential opportunity if you understand the business, the catalysts that could close the gap, and the risks that could keep the discount in place.
Below I spotlight the Top 5 undervalued stocks in Asia/Africa to watch in 2025. Each pick includes why it might be undervalued, what could trigger a re-rating, and the key risk to watch. I’ve focused on large-population markets and names that come up repeatedly in recent screens and analyst notes — Singapore (Asia), and Kenya and South Africa (Africa) among them.
Quick TL;DR — The five undervalued stocks to watch (2025)
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OCBC (Oversea-Chinese Banking Corporation) — Singapore banking stalwart.
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Wilmar International — Asia’s agri-commodity & food processing giant.
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Jardine Cycle & Carriage (Jardine C&C) — Diversified holding company with industrial & automotive exposure across Southeast Asia.
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Safaricom — Kenya’s dominant telecom and mobile money platform (strong growth at attractive valuation in some analyst views).
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MTN Group — Africa’s telecom heavyweight with fintech expansion and long-term upside despite near-term currency/headline risk.
Each of these stocks shows signs of trading beneath long-term fair values or peer averages—meaning patient investors who do the homework may find asymmetric returns. Now let’s unpack each name.
1) OCBC — Singapore bank stock with steady cash flow and dividend cushion
Why OCBC is on value screens (stocks): OCBC (O39.SI) has long been viewed as a stable bank with deep Southeast Asian exposure, a history of dividends, and steady earnings. In 2025 OCBC appears on multiple “undervalued Singapore stocks” lists thanks to attractive price-to-earnings and price-to-book metrics relative to some peers and its dividend yield, even as loan growth and net interest income face cyclical headwinds. Recent screens name OCBC among top undervalued Singapore stocks to watch. IG
Catalysts that could re-rate the stock (stocks):
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Rebound or stabilization in net interest margins and loan growth.
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Successful capital returns (buybacks/dividends) that boost shareholder value.
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Resolution of one-off items and better-than-expected fee income.
Key risk: Slowing regional growth and margin compression could keep valuations muted; regulatory or insurance delisting moves (e.g., Great Eastern) create headline uncertainty. Reuters
2) Wilmar International — agribusiness undervaluation across Asia (stocks)
Why Wilmar looks undervalued (stocks): Wilmar is one of the largest agribusiness and food processing groups in Asia. Despite scale and diversified operations, the stock has spent time with low price-to-book and depressed multiples when commodity cycles or regional demand slow — creating value opportunities for contrarian investors. Value lists for Singapore frequently include Wilmar among potential bargains. Dr Wealth+1
Catalysts that could close the valuation gap:
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Commodity margin recovery (edible oils, soybean products) and better China demand.
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Earnings improvements from joint ventures (for example, Adani Wilmar related developments) and cost rationalizations. The Economic Times
Key risk: Wilmar’s earnings are exposed to commodity price swings, regulatory actions in sourcing countries, and operational disruptions — any of which can keep the stock range-bound.
3) Jardine Cycle & Carriage — a conglomerate traded below intrinsic estimates (stocks)
Why Jardine C&C appears undervalued (stocks): Jardine Cycle & Carriage (C07.SI) is a diversified industrial/automotive holding with sizable interests across Southeast Asia. Several valuation screens and independent fair-value calculations indicate significant upside versus market price — a classic conglomerate discount case where asset value outstrips the quoted equity price. Multiple investor calculators and value screens flag Jardine as trading materially below intrinsic estimates. www.alphaspread.com
Catalysts that could unlock value (stocks):
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Stronger auto cycles in Southeast Asia and higher profits from core subsidiaries.
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Management actions to narrow the conglomerate discount (share buybacks, asset rationalization).
Key risk: Conglomerates can be slow to re-rate; macro-sensitive end markets (automotive, heavy industry) could remain weak, prolonging the discount.
4) Safaricom — Kenya’s mobile-money leader with upside potential (stocks)
Why Safaricom is on value radars (stocks): Safaricom (SCOM) is best known for M-Pesa and dominant telco market share in Kenya. Despite growth and impressive scale, some analyst notes in 2025 still argued the stock had upside from current levels (e.g., fair-value estimates materially above then-trading prices during parts of 2025), making Safaricom an often-cited name on “undervalued Africa” lists. Analyst reports have highlighted potential double-digit upside in 2025 near some close dates. fib.co.ke+1
Catalysts that could lift the stock (stocks):
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Continued M-Pesa monetization, higher ARPU and fintech partnerships.
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Positive regulatory outcomes and expansion in adjacent markets.
Key risk: Political or regulatory shifts, currency swings, or slower fintech monetization could cap returns.
5) MTN Group — telecom giant with fintech upside, discounted by macro headlines (stocks)
Why MTN shows up as undervalued (stocks): MTN Group (JSE:MTN) is Africa’s largest mobile operator with huge subscriber counts and growing fintech (MoMo) revenue. Headlines tied to currency devaluations (Nigeria) and one-off items have compressed earnings and left the stock trading at discounts to many global peers on some forward metrics — despite business scale and structural advantages. Reuters coverage in 2025 emphasized how currency devaluations hammered reported earnings even as the group’s underlying service revenue trends were mixed. Reuters+1
Catalysts that could narrow the discount (stocks):
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Currency stabilization in large markets (especially Nigeria).
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Continued growth of MoMo and other fintech services, which carry higher margins.
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Cost efficiencies and success in content/streaming partnerships.
Key risk: Persistent FX volatility, regulatory surprises, or operational shocks (conflict zones impacting operations) could keep the share price depressed.
How I chose these five undervalued stocks (2025) — method you can replicate (stocks)
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Start with regional undervaluation screens: Look at price-to-book, forward P/E vs peers, and dividend yield. Public screens and brokers (IG, value blogs, DrWealth, and regional Reuters/Bloomberg coverage) are useful starting points. IG+1
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Check recent analyst notes and screens: Brokers and regional research houses often publish target prices and fair value commentary (e.g., Safaricom research notes, OCBC filings). fib.co.ke+1
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Identify structural growth elements: Are the businesses scaling fintech, AI, or regional distribution advantages? Those are long-term catalysts. Reuters
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Factor macro and currency risk: For Africa especially, currency devaluations can turn solid local economics into headline losses in USD reporting — something value investors must model. Reuters
Practical checklist before you buy any undervalued stock (stocks)
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Read the latest quarterly/annual report. Management commentary matters. OCBC+1
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Model different FX / commodity / margin scenarios. What happens if the naira weakens 20%?
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Check ownership and liquidity. Thinly traded issues are riskier.
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Identify realistic catalysts and a timeframe. Value can remain trapped for years without a clear trigger.
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Diversify across countries and sectors. Don’t let a single emerging market macro shock blow up your portfolio.
FAQ — Frequently asked questions about undervalued stocks in Asia/Africa (stocks)
Q: Are “undervalued” stocks in emerging markets automatically good buys?
A: No. “Undervalued” is a starting point. You need to determine why the discount exists, whether it’s temporary (cyclical earnings, one-offs) or structural (declining industry, regulatory risk) and whether catalysts exist to close the gap. Model multiple downside scenarios.
Q: How do currency movements affect the valuation of African and Asian stocks?
A: Many large firms report or have costs/revenues in different currencies. A severe local currency devaluation can reduce reported earnings in hard currency terms or raise refinancing costs — which is why some profitable local businesses still trade at a discount. Reuters coverage of MTN’s 2025 results shows this dynamic clearly. Reuters
Q: Should I use P/E or P/B to find undervalued stocks in these markets?
A: Both — and more. P/E is useful for earnings-based valuation; P/B can matter for banks, real estate and asset-heavy businesses. Also use discounted cash flow (DCF) where long-term cash flows matter, and compare forward and trailing multiples.
Q: Can foreign investors buy these stocks easily?
A: It depends on the market: Singapore and South Africa have mature, accessible exchanges; some African markets have more restrictions or require a local broker. Always check foreign ownership rules and settlement logistics.
Q: Is this article financial advice?
A: No. This is educational/informational content. Always do your own research or consult a licensed financial advisor before making investment decisions.
Conclusion — Why these five stocks matter in 2025
Asia and Africa present differing flavours of value in 2025: Asia’s developed-market exchanges (Singapore) offer large, dividend-paying blue chips that occasionally trade at discounts when cyclicals stumble; Africa offers high-growth platforms (telecom + fintech) that can be mispriced because of currency or country risks. The five stocks above — OCBC, Wilmar, Jardine C&C, Safaricom, and MTN — represent a mix of steady cash generators and platform businesses where strategic growth could materially narrow the valuation gap.
If you’re hunting undervalued stocks, the right approach is patient, data-driven, and scenario-based. Use screens to build a watchlist, read company filings and independent analyst notes, and model the macro risks. Remember: value is not the same as safety — undervalued companies can stay that way until a clear catalyst appears.