In This Article:
Over the last 7 days, the Indian market has remained flat, yet it has surged by 44% over the past year with earnings forecasted to grow by 17% annually. In this context, identifying undervalued stocks can provide significant opportunities for investors looking to capitalize on potential growth and value in a thriving market.
Top 10 Undervalued Stocks Based On Cash Flows In India
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Everest Kanto Cylinder (NSEI:EKC) | ₹182.75 | ₹306.03 | 40.3% |
| Krsnaa Diagnostics (NSEI:KRSNAA) | ₹726.60 | ₹1165.33 | 37.6% |
| Prataap Snacks (NSEI:DIAMONDYD) | ₹837.75 | ₹1509.79 | 44.5% |
| Apollo Pipes (BSE:531761) | ₹653.55 | ₹1148.09 | 43.1% |
| Venus Pipes and Tubes (NSEI:VENUSPIPES) | ₹2368.95 | ₹4384.37 | 46% |
| IOL Chemicals and Pharmaceuticals (BSE:524164) | ₹436.75 | ₹762.32 | 42.7% |
| Updater Services (NSEI:UDS) | ₹366.50 | ₹619.71 | 40.9% |
| Patel Engineering (BSE:531120) | ₹58.83 | ₹93.30 | 36.9% |
| Artemis Medicare Services (NSEI:ARTEMISMED) | ₹270.80 | ₹445.15 | 39.2% |
| Rajesh Exports (NSEI:RAJESHEXPO) | ₹293.65 | ₹586.87 | 50% |
Let's review some notable picks from our screened stocks.
Kalpataru Projects International
Overview: Kalpataru Projects International Limited offers engineering, procurement, and construction (EPC) services across sectors such as power transmission and distribution, buildings and factories, water, railways, oil and gas, and urban infrastructure in India and internationally with a market cap of ₹226.63 billion.
Operations: Kalpataru Projects International Limited generates revenue primarily from its Engineering, Procurement, and Construction (EPC) segment, amounting to ₹194.92 billion, with additional contributions from Development Projects totaling ₹2.81 billion.
Estimated Discount To Fair Value: 20.1%
Kalpataru Projects International (KPIL) is trading at ₹1395.1, which is 20.1% below its estimated fair value of ₹1747.12, indicating potential undervaluation based on discounted cash flow analysis. Earnings are forecast to grow significantly at 29% annually, outpacing the Indian market's average growth rate of 16.9%. However, recent regulatory issues involving GST and other tax penalties may impact financial stability in the short term but are not expected to have a significant long-term effect on KPIL's valuation or operations.
NIIT Learning Systems
Overview: NIIT Learning Systems Limited provides managed training services across India, America, Europe, and internationally, with a market cap of ₹69.57 billion.