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Stock market crash: I think these cheap UK shares could double your money

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The outbreak of Covid-19 and the subsequent stock market crash has rattled investor confidence. But the aftermath of a major sell-off still remains one of the best times to invest your money. It’s often the case that attractive returns can be realised down the line. As such, buying cheap UK shares today could be a wise move, provided you’re in it for the long term.

Yesterday, I talked about two British shares that I think are too cheap to ignore. Today, I want to discuss another two that I think have the potential to double your money.

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Ashtead Group: a cheap UK share?

International equipment rental company Ashtead Group (LSE: AHT) operates in some of the world’s largest markets. This includes the US, UK and Canada. The company rents a wide range of construction and industrial equipment to a diverse customer base.

Over the last 10 years, Ashtead’s share price has rocketed by around 2,713%. The shares have gone from trading at 90p in January 2010, to £25 today! This remarkable share price performance largely reflects the profitability of the underlying business. What’s more, much of the company’s success has been delivered through a series of mergers and acquisitions, which have helped consolidate Ashtead’s market position.

Inevitably, demand for the company’s products in the construction sector has declined. However, this has been largely offset by increased demand from emergency services and other key industries. Therefore, despite operating in the relatively cyclical construction industry, the group has weathered the crisis well so far. Moreover, while it’s unlikely that construction will bounce back quickly, Ashtead is well-placed to capitalise on increased government spending on infrastructure, not to mention rising house sales in the UK and US.

All things considered, I view a P/E ratio of 14 as a price well worth paying for those prepared to hold for the long term. Ashtead’s dividend yield is nothing to write home about, but I’m focused on the upside potential of the company’s share price, which I think could feasibly double your investment over the coming years thanks to the business’s strong recovery potential.

Mondi: industry-leading international packaging

Packaging and paper group Mondi (LSE: MNDI) is the second British share I want to look at today. Right off the bat, a P/E ratio of 9.2 suggests there could be value to be had. What’s more, the shares have failed to make a strong recovery since the sell-off in March and are still down by 20% since the start of 2020. But why?

Well, widespread lockdowns inevitably took their toll on the business. Mondi was forced into the temporary closure of various paper mills and other plants. That said, trading remained resilient throughout the first few months of the pandemic, and I’m confident that Mondi’s exposure to the lucrative e-commerce market will stand the business in good stead moving forward. What’s more, company CEO Andrew King recently purchased some 15,000 shares in the company, which indicates he too is confident regarding the firm’s future outlook.

Consequently, I think Mondi shares are seriously undervalued. Given the company’s sustainable business plan and profitability, I think there’s plenty of room for further growth. As such, I reckon investors prepared to hold for the long term stand a high chance of doubling their money in the years to come, thanks to a combination of share price appreciation and dividends.

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Matthew Dumigan has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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