In This Article:
Over the past 7 days, the Indian market has risen 2.8%, and over the past 12 months, it is up an impressive 48%, with earnings forecast to grow by 16% annually. In this thriving market environment, identifying undervalued stocks like Archean Chemical Industries can offer significant opportunities for investors seeking value investments at a discount.
Top 10 Undervalued Stocks Based On Cash Flows In India
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Shyam Metalics and Energy (NSEI:SHYAMMETL) | ₹739.75 | ₹1349.51 | 45.2% |
| HEG (NSEI:HEG) | ₹2222.50 | ₹3892.74 | 42.9% |
| S Chand (NSEI:SCHAND) | ₹229.01 | ₹353.60 | 35.2% |
| Titagarh Rail Systems (NSEI:TITAGARH) | ₹1568.95 | ₹2548.42 | 38.4% |
| Updater Services (NSEI:UDS) | ₹318.70 | ₹626.76 | 49.2% |
| Vedanta (NSEI:VEDL) | ₹448.10 | ₹836.89 | 46.5% |
| Rajesh Exports (NSEI:RAJESHEXPO) | ₹308.45 | ₹591.11 | 47.8% |
| Mahindra Logistics (NSEI:MAHLOG) | ₹509.60 | ₹990.63 | 48.6% |
| Piramal Pharma (NSEI:PPLPHARMA) | ₹173.25 | ₹289.56 | 40.2% |
| Strides Pharma Science (NSEI:STAR) | ₹1089.45 | ₹2032.10 | 46.4% |
Here we highlight a subset of our preferred stocks from the screener.
Archean Chemical Industries
Overview: Archean Chemical Industries Limited manufactures and sells specialty marine chemicals both in India and internationally, with a market cap of ₹96.98 billion.
Operations: Archean Chemical Industries generates revenue primarily from its marine chemicals segment, amounting to ₹13.30 billion.
Estimated Discount To Fair Value: 10.3%
Archean Chemical Industries appears undervalued based on cash flows, trading at ₹785.95, which is 10.3% below its estimated fair value of ₹876.26. Despite a recent penalty of INR 4,976,100/- for GST issues and a drop in net income to INR 3.19 billion for FY2024 from INR 3.83 billion the previous year, the company’s revenue is forecast to grow at 24.1% per year, significantly outpacing the Indian market average of 9.7%.
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Our growth report here indicates Archean Chemical Industries may be poised for an improving outlook.
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Take a closer look at Archean Chemical Industries' balance sheet health here in our report.
CMS Info Systems
Overview: CMS Info Systems Limited, with a market cap of ₹91.81 billion, operates as a cash management company in India through its subsidiaries.
Operations: The company's revenue segments include Card Services at ₹890.75 million, Managed Services at ₹8.54 billion, and Cash Management Services at ₹15.11 billion.
Estimated Discount To Fair Value: 11.7%
CMS Info Systems is trading at ₹564.1, below its estimated fair value of ₹638.71, indicating it may be undervalued based on cash flows. Earnings have grown 20.8% annually over the past five years and are forecast to grow 16.99% per year, outpacing the Indian market's 16.4%. Despite a recent dilution and an unstable dividend track record, CMS Info Systems shows strong revenue growth prospects at 14.4% per year compared to the market's 9.7%.