3 Stocks On The Indian Exchange Estimated To Be Below Their Intrinsic Value
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Over the last 7 days, the Indian market has experienced a 4.9% decline, yet it remains up by 37% over the past year with earnings projected to grow by 18% annually in the coming years. In this fluctuating environment, identifying stocks that are estimated to be below their intrinsic value can offer potential opportunities for investors seeking long-term growth.
Top 10 Undervalued Stocks Based On Cash Flows In India
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Everest Kanto Cylinder (NSEI:EKC) | ₹172.69 | ₹310.79 | 44.4% |
| Sudarshan Chemical Industries (BSE:506655) | ₹942.70 | ₹1830.04 | 48.5% |
| Titagarh Rail Systems (NSEI:TITAGARH) | ₹1146.40 | ₹2152.54 | 46.7% |
| RITES (NSEI:RITES) | ₹277.85 | ₹519.25 | 46.5% |
| Jindal Steel & Power (NSEI:JINDALSTEL) | ₹899.05 | ₹1531.31 | 41.3% |
| Orchid Pharma (NSEI:ORCHPHARMA) | ₹1254.75 | ₹2142.32 | 41.4% |
| Vedanta (NSEI:VEDL) | ₹455.40 | ₹891.32 | 48.9% |
| Patel Engineering (BSE:531120) | ₹47.66 | ₹89.73 | 46.9% |
| IRB Infrastructure Developers (NSEI:IRB) | ₹50.79 | ₹89.00 | 42.9% |
| Tarsons Products (NSEI:TARSONS) | ₹406.65 | ₹711.26 | 42.8% |
Underneath we present a selection of stocks filtered out by our screen.
Krsnaa Diagnostics
Overview: Krsnaa Diagnostics Limited offers diagnostic services in India and has a market cap of ₹25.32 billion.
Operations: The company's revenue primarily comes from its Radiology and Pathology Services segment, which generated ₹6.81 billion.
Estimated Discount To Fair Value: 32.7%
Krsnaa Diagnostics is trading at ₹784.1, significantly below its estimated fair value of ₹1165.33, suggesting potential undervaluation based on cash flows. The company has demonstrated strong revenue growth, with recent quarterly sales increasing to ₹1.86 billion from ₹1.55 billion a year ago and net income rising to ₹195.96 million from ₹104.96 million in the same period last year. However, past shareholder dilution and low dividend coverage by free cash flows are notable concerns.
Laxmi Organic Industries
Overview: Laxmi Organic Industries Limited is engaged in the production of acetyl and specialty intermediate products, serving both domestic and international markets, with a market cap of ₹67.47 billion.
Operations: The company's revenue is primarily derived from its Chemicals Business segment, which generated ₹28.54 billion.
Estimated Discount To Fair Value: 10.7%
Laxmi Organic Industries, priced at ₹244.65, is trading below its fair value estimate of ₹274.06, indicating it may be undervalued based on cash flows. The company's earnings are projected to grow significantly at 28.8% annually over the next three years, outpacing the Indian market's growth rate of 17.6%. However, a recent regulatory order demands ₹235.2 million plus penalties for disallowed ITC credits, which could impact financial stability if not resolved favorably.