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The Indian market has experienced a notable uptick, rising 2.6% in the last 7 days with all sectors gaining ground, and climbing 44% over the past year. In this robust environment, identifying undervalued stocks can offer significant opportunities for investors looking to capitalize on future earnings growth projected at 17% annually.
Top 10 Undervalued Stocks Based On Cash Flows In India
Name | Current Price | Fair Value (Est) | Discount (Est) |
Everest Kanto Cylinder (NSEI:EKC) | ₹189.27 | ₹305.83 | 38.1% |
Krsnaa Diagnostics (NSEI:KRSNAA) | ₹721.65 | ₹1165.33 | 38.1% |
Yatharth Hospital & Trauma Care Services (NSEI:YATHARTH) | ₹493.95 | ₹792.81 | 37.7% |
Venus Pipes and Tubes (NSEI:VENUSPIPES) | ₹2221.10 | ₹4370.88 | 49.2% |
IOL Chemicals and Pharmaceuticals (BSE:524164) | ₹437.55 | ₹762.32 | 42.6% |
RITES (NSEI:RITES) | ₹660.15 | ₹1043.90 | 36.8% |
Updater Services (NSEI:UDS) | ₹348.80 | ₹622.90 | 44% |
Prataap Snacks (NSEI:DIAMONDYD) | ₹889.05 | ₹1509.79 | 41.1% |
Patel Engineering (BSE:531120) | ₹54.39 | ₹90.95 | 40.2% |
Manorama Industries (BSE:541974) | ₹872.35 | ₹1665.51 | 47.6% |
Here's a peek at a few of the choices from the screener.
CMS Info Systems
Overview: CMS Info Systems Limited, with a market cap of ₹93.41 billion, operates as a cash management company in India through its subsidiaries.
Operations: The company's revenue segments (in millions of ₹) are Card Services: 890.75, Managed Services: 8.54 billion, and Cash Management Services: 15.11 billion.
Estimated Discount To Fair Value: 10.1%
CMS Info Systems is trading at ₹573.9, which is 10.1% below its estimated fair value of ₹638.7. The company's earnings are forecast to grow at 17% per year, slightly above the Indian market's growth rate of 16.9%. Despite a history of shareholder dilution and an unstable dividend track record, CMS Info Systems' revenue growth (14.4% per year) outpaces the broader market's growth rate (10%). Recent financials show strong performance with Q1 revenue rising to ₹6.11 billion from ₹5.18 billion a year ago and net income increasing to ₹907.86 million from ₹842.82 million in the same period last year.
Everest Kanto Cylinder
Overview: Everest Kanto Cylinder Limited, along with its subsidiaries, manufactures and sells gas cylinders in India and has a market cap of ₹21.24 billion.
Operations: Everest Kanto Cylinder's revenue segments include manufacturing and selling gas cylinders in India.