Plenti (ASX: PLT) is an Australian consumer lending and fintech platform that provides personal loans, automotive finance and renewable energy finance, primarily through a digital marketplace model. The company positions itself as a technology-driven alternative to traditional banks, using data and automated credit assessment to streamline loan approvals and funding. Its business model is leveraged to structural growth themes such as digitisation of lending, non-bank financial services expansion and increasing demand for financing in areas like electric vehicles and solar installations. These structural drivers have helped Plenti build loan originations and customer numbers over time, supporting the view among some investors that it could be undervalued relative to its growth potential.

In its most recent results period, Plenti has continued to focus on loan portfolio growth, improving funding costs and scaling operating leverage. The company has emphasised disciplined credit quality while expanding originations, which is important given rising interest rate environments in recent years. Investors often watch metrics like loan book growth, net interest margins and funding diversification, as these ultimately determine whether fintech lenders can generate sustainable profitability at scale. If Plenti can continue growing originations while lowering cost of funds through warehouse and securitisation funding structures, it could strengthen its valuation case relative to traditional lenders and other fintech peers.

The undervalued investment argument for Plenti typically centres on its relatively small market capitalisation compared to major financials, combined with long-term structural growth opportunities in digital lending. However, as with most fintech lenders, the share price can be sensitive to credit cycles, funding costs and investor risk sentiment. If management can continue executing on growth while maintaining credit discipline and improving margins, some investors see potential for multiple expansion over time.

Virgin Australia (ASX: VAH) is Australia’s second-largest airline and operates domestic and short-haul international passenger services, competing primarily with Qantas and low-cost carriers. Following its 2020 restructuring and recapitalisation under private equity ownership, the airline has shifted toward a mid-market strategy, targeting corporate and premium leisure travellers while maintaining cost discipline. This repositioning has been central to restoring profitability and rebuilding balance sheet strength after the pandemic severely impacted global aviation.

Recent financial performance has been supported by strong domestic travel demand, improved yield management and disciplined capacity deployment. The airline industry broadly has benefited from elevated ticket prices due to constrained global aircraft supply and strong travel demand recovery. Virgin’s focus on higher-margin customer segments has helped improve revenue per seat and operating margins compared with pre-pandemic years. Investors and analysts often look at load factors, yield per passenger and cost per available seat kilometre to assess whether airlines are generating sustainable profitability in the current environment.

Virgin is sometimes viewed as an undervalued or turnaround-style opportunity because it is not currently ASX-listed (though it has periodically discussed IPO possibilities), meaning public market investors cannot directly price its recovery. If it eventually relists and continues demonstrating improved profitability, stronger balance sheet metrics and stable market share in Australia’s duopoly-style airline market, it could attract significant investor interest

Inghams (ASX: ING) is one of the largest poultry producers in Australia and New Zealand, supplying fresh and processed chicken products to supermarkets, quick-service restaurants and foodservice operators. The company operates an integrated supply chain model covering breeding, feed milling, processing and distribution, which allows it to manage quality and costs across production. Poultry remains one of the most widely consumed proteins in Australia, giving Inghams exposure to relatively defensive food demand compared to more discretionary protein categories.

In recent financial results, Inghams reported strong full-year earnings growth in FY24, including revenue rising 7.2% to about $3.3 billion and net profit increasing 68% to around $101.5 million, reflecting pricing improvements and cost recovery initiatives. However, more recent interim results have shown some pressure from cost-of-living impacts and contract changes, with 1H FY25 net profit falling about 19% to $51.5 million and revenue down slightly to around $1.61 billion. These mixed trends highlight both the defensive nature of food demand and the sensitivity to input costs, supply contracts and consumer behaviour.

The undervalued argument for Inghams often focuses on its defensive food exposure, strong market position and consistent cash generation through the cycle. However, risks include retailer contract negotiations, feed cost volatility and changing consumer demand patterns. If Inghams can maintain pricing power while improving operational efficiency and automation, investors may view it as a stable earnings compounder within the consumer staples and agriculture supply chain sector.