3 Indian Stocks That Could Be Trading Below Estimated Value

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Over the last 7 days, the Indian market has experienced a decline of 3.6%, yet it has shown impressive growth of 40% over the past year, with earnings projected to increase by 17% annually in the coming years. In this environment, identifying stocks that are potentially trading below their estimated value can be crucial for investors seeking opportunities amidst fluctuating market conditions.

Top 10 Undervalued Stocks Based On Cash Flows In India

Name

Current Price

Fair Value (Est)

Discount (Est)

Everest Kanto Cylinder (NSEI:EKC)

₹188.79

₹306.16

38.3%

RITES (NSEI:RITES)

₹295.85

₹517.78

42.9%

Thomas Cook (India) (BSE:500413)

₹186.30

₹301.15

38.1%

IOL Chemicals and Pharmaceuticals (BSE:524164)

₹431.70

₹762.32

43.4%

Orchid Pharma (NSEI:ORCHPHARMA)

₹1257.70

₹2142.32

41.3%

Vedanta (NSEI:VEDL)

₹500.30

₹900.84

44.5%

Patel Engineering (BSE:531120)

₹52.93

₹91.66

42.3%

Artemis Medicare Services (NSEI:ARTEMISMED)

₹253.90

₹445.15

43%

Tarsons Products (NSEI:TARSONS)

₹429.95

₹708.02

39.3%

Strides Pharma Science (NSEI:STAR)

₹1410.20

₹2704.30

47.9%

Click here to see the full list of 27 stocks from our Undervalued Indian Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

Awfis Space Solutions

Overview: Awfis Space Solutions Limited offers flexible workspace solutions in India and has a market cap of ₹44.50 billion.

Operations: The company's revenue primarily comes from Co-Working Space on Rent and Allied Services, generating ₹6.65 billion, followed by Construction and Fit-Out Projects at ₹2.29 billion.

Estimated Discount To Fair Value: 27.4%

Awfis Space Solutions is trading at ₹633.8, significantly below its estimated fair value of ₹873.58, suggesting undervaluation based on discounted cash flow analysis. The company anticipates above-market revenue growth of 28.8% annually and aims to become profitable within three years, despite recent share price volatility. Recent expansions in GIFT City and partnerships in Pune enhance its strategic presence in India's commercial hubs, potentially boosting future cash flows and supporting its undervalued status.

NSEI:AWFIS Discounted Cash Flow as at Oct 2024
NSEI:AWFIS Discounted Cash Flow as at Oct 2024

Quess

Overview: Quess Corp Limited is a business services provider operating in India, South East Asia, the Middle East, and North America with a market cap of ₹108.91 billion.

Operations: The company's revenue is derived from several segments: Product Led Business contributing ₹4.29 billion, Workforce Management at ₹138.44 billion, Operating Asset Management generating ₹28.43 billion, and Global Technology Solutions (excluding Product Led Business) adding ₹23.87 billion.