Some of the most compelling S&P/ASX 200 Index (ASX: XJO) shares to own aren't necessarily the ones that get the most investor attention.
It's the businesses that are overlooked by the market that could be the most undervalued.
Both of the companies I'll highlight in this article are well-liked by the fund manager L1 Capital. Both businesses are benefiting from the ongoing digitalisation of their respective markets.
Let's take a look at why both businesses are appealing businesses to own.
Imdex Ltd (ASX: IMD)
Imdex describes itself as a leading global mining technology company, which enables successful and cost-effective operations from exploration to production. It develops cloud-connected sensors and drilling optimisation products to improve the process of identifying and extracting mineral resources for drilling optimisation products to improve the process of identifying and extracting mineral resources for drilling contractors and resource companies globally.
Fund manager L1 said junior miner capital raising activity, a key leading indicator for exploration spending, continues to "trend positively" and has reached the highest levels since 2021.
The investment team believes this should provide a "strong tailwind" for the company as exploration activity increases after a period of weak underlying market conditions.
L1 also said that the ASX 200 share continues to execute well, reporting increased market share and resilient margins due to its leading product offering and strong cost management. The fund manager then said:
We still see positive tailwinds for the business, above and beyond the improving market environment, underpinned by further market share gains, margin expansion and digital penetration.
In the first quarter of FY26, Imdex reported 10% revenue growth of 10% year-over-year and 3% quarter-over-quarter. The gross profit margin and operating profit (EBITDA) margins continue to perform as expected.
Chorus Ltd (ASX: CNU)
Chorus is best known for being the builder and owner of a major fibre network in New Zealand. It continues to see strong growth for data. September 2025 data usage increased 10% year-over-year.
L1 notes that Chorus has benefited from several incremental but positive events.
In August, the ASX 200 share delivered a FY25 result and FY26 outlook that was broadly in line with expectations.
However, the FY26 guidance of 60 cents per share (up 4.3% year-over-year) was "modestly ahead" of market expectations and is well supported by ongoing discipline over the levels of sustaining capital expenditure. In the three months to September 2025, Chorus implemented speed boosts and also flagged price changes for 2026, which were also slightly ahead of market expectations.
L1 notes that Chorus has a dividend yield of around 7%. The fund manager concluded its thoughts on the ASX 200 share with the following:
Chorus remains an attractive asset, with the business well placed to deliver robust earnings and dividend growth in the years ahead from a unique platform as a scarce, regulated, essential digital infrastructure operator.
