In This Article:
The Indian market has shown impressive resilience, with the Information Technology sector gaining 4.0% while the overall market remained flat last week and up 44% over the past year. In this thriving environment where earnings are forecast to grow by 17% annually, identifying undervalued stocks can offer significant opportunities for investors seeking value amidst robust growth projections.
Top 10 Undervalued Stocks Based On Cash Flows In India
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Godfrey Phillips India (BSE:500163) | ₹4533.25 | ₹8904.96 | 49.1% |
| Everest Kanto Cylinder (NSEI:EKC) | ₹169.18 | ₹305.83 | 44.7% |
| Krsnaa Diagnostics (NSEI:KRSNAA) | ₹658.20 | ₹1165.33 | 43.5% |
| Yatharth Hospital & Trauma Care Services (NSEI:YATHARTH) | ₹459.80 | ₹792.08 | 42% |
| IOL Chemicals and Pharmaceuticals (BSE:524164) | ₹391.70 | ₹762.32 | 48.6% |
| Updater Services (NSEI:UDS) | ₹320.00 | ₹622.14 | 48.6% |
| RITES (NSEI:RITES) | ₹655.45 | ₹1044.17 | 37.2% |
| Prataap Snacks (NSEI:DIAMONDYD) | ₹894.40 | ₹1509.79 | 40.8% |
| Patel Engineering (BSE:531120) | ₹54.69 | ₹90.82 | 39.8% |
| Tarsons Products (NSEI:TARSONS) | ₹423.15 | ₹700.49 | 39.6% |
Here's a peek at a few of the choices from the screener.
Blue Jet Healthcare
Overview: Blue Jet Healthcare Limited manufactures and sells pharmaceutical intermediates and active pharmaceutical ingredients (APIs) for use in pharmaceutical and healthcare products, with a market cap of ₹79.90 billion.
Operations: The company's revenue segment includes the manufacturing of pharmaceutical and healthcare products, generating ₹6.95 billion.
Estimated Discount To Fair Value: 15.6%
Blue Jet Healthcare is trading at ₹460.6, 15.6% below its estimated fair value of ₹545.78, indicating potential undervaluation based on cash flows. Despite recent earnings declines—with Q1 2024 net income at INR 377.77 million compared to INR 441.21 million a year ago—the company’s revenue and earnings are forecasted to grow significantly faster than the Indian market, at rates of 25.1% and 25.6% per year respectively, driven by strategic expansions in production capacity.
Updater Services
Overview: Updater Services Limited operates an integrated business services platform in India and has a market cap of ₹21.42 billion.
Operations: Updater Services Limited generates revenue primarily from two segments: Business Support Services, contributing ₹8.67 billion, and Integrated Facility Management Services, which brings in ₹16.99 billion.