In This Article:
In the last week, the Indian market is up 1.7%, and over the past year, it has climbed 41%, with earnings forecast to grow by 17% annually. In this thriving environment, identifying stocks that are potentially trading below their estimated intrinsic value could offer significant opportunities for investors.
Top 10 Undervalued Stocks Based On Cash Flows In India
Name | Current Price | Fair Value (Est) | Discount (Est) |
Everest Kanto Cylinder (NSEI:EKC) | ₹200.73 | ₹306.54 | 34.5% |
Prataap Snacks (NSEI:DIAMONDYD) | ₹815.85 | ₹1509.79 | 46% |
Venus Pipes and Tubes (NSEI:VENUSPIPES) | ₹2331.80 | ₹4408.26 | 47.1% |
Apollo Pipes (BSE:531761) | ₹624.05 | ₹1143.97 | 45.4% |
Titagarh Rail Systems (NSEI:TITAGARH) | ₹1348.05 | ₹2174.27 | 38% |
Patel Engineering (BSE:531120) | ₹59.80 | ₹94.10 | 36.4% |
Artemis Medicare Services (NSEI:ARTEMISMED) | ₹288.65 | ₹445.15 | 35.2% |
IRB Infrastructure Developers (NSEI:IRB) | ₹61.44 | ₹93.60 | 34.4% |
Rajesh Exports (NSEI:RAJESHEXPO) | ₹295.90 | ₹585.71 | 49.5% |
Tarsons Products (NSEI:TARSONS) | ₹442.10 | ₹708.25 | 37.6% |
Let's uncover some gems from our specialized screener.
Artemis Medicare Services
Overview: Artemis Medicare Services Limited manages and operates multi-specialty hospitals in India and internationally, with a market cap of ₹39.72 billion.
Operations: Artemis Medicare Services generates revenue primarily through its healthcare services segment, amounting to ₹8.92 billion.
Estimated Discount To Fair Value: 35.2%
Artemis Medicare Services is trading at ₹288.65, significantly below its estimated fair value of ₹445.15, indicating potential undervaluation based on cash flows. Despite a high level of debt and forecasted low return on equity (16.5%), the company’s earnings are expected to grow substantially at 45.4% annually over the next three years, outpacing the Indian market's growth rate of 17.1%. Recent board changes include appointing experienced legal professionals as independent directors, potentially strengthening governance.
Fusion Finance
Overview: Fusion Finance Limited, with a market cap of ₹31.08 billion, is a non-banking financial company that offers microfinance lending services to women entrepreneurs in rural and semi-urban areas in India.
Operations: Fusion Finance's revenue from micro financing activities is ₹10.98 billion.
Estimated Discount To Fair Value: 19.6%