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In the last week, the Indian market has been flat, although it is up 44% over the past year with earnings forecast to grow by 17% annually. In this environment, identifying undervalued stocks like Bandhan Bank can offer potential opportunities for investors looking to capitalize on future growth.
Top 10 Undervalued Stocks Based On Cash Flows In India
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Apollo Pipes (BSE:531761) | ₹587.90 | ₹1136.77 | 48.3% |
| Titagarh Rail Systems (NSEI:TITAGARH) | ₹1188.60 | ₹2154.40 | 44.8% |
| RITES (NSEI:RITES) | ₹334.25 | ₹516.97 | 35.3% |
| IOL Chemicals and Pharmaceuticals (BSE:524164) | ₹474.90 | ₹762.32 | 37.7% |
| Vedanta (NSEI:VEDL) | ₹516.15 | ₹936.58 | 44.9% |
| Patel Engineering (BSE:531120) | ₹56.88 | ₹93.04 | 38.9% |
| Orchid Pharma (NSEI:ORCHPHARMA) | ₹1334.65 | ₹2142.32 | 37.7% |
| Artemis Medicare Services (NSEI:ARTEMISMED) | ₹284.55 | ₹445.15 | 36.1% |
| Tarsons Products (NSEI:TARSONS) | ₹448.50 | ₹708.73 | 36.7% |
| Strides Pharma Science (NSEI:STAR) | ₹1401.00 | ₹2704.30 | 48.2% |
We're going to check out a few of the best picks from our screener tool.
Bandhan Bank
Overview: Bandhan Bank Limited provides banking and financial services to personal and business customers in India, with a market cap of ₹314.59 billion.
Operations: Bandhan Bank's revenue segments include Treasury (₹22.72 billion), Retail Banking (₹190.31 billion), Wholesale Banking (₹17.10 billion), and Other Banking Business (₹3.13 billion).
Estimated Discount To Fair Value: 10.1%
Bandhan Bank is trading at ₹195.28, slightly below its estimated fair value of ₹217.27. Despite a high level of bad loans (3.8%) and low allowance for bad loans (72%), the bank's earnings are expected to grow significantly at 23.6% annually over the next three years, outpacing the Indian market's growth rate of 17.2%. Recent regulatory issues related to GST matters have had minimal financial impact on the bank's operations.
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The growth report we've compiled suggests that Bandhan Bank's future prospects could be on the up.
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Click to explore a detailed breakdown of our findings in Bandhan Bank's balance sheet health report.
Strides Pharma Science
Overview: Strides Pharma Science Limited develops, manufactures, and sells pharmaceutical products across Africa, Australia, North America, Europe, Asia, India, and internationally with a market cap of ₹128.83 billion.
Operations: The company generates ₹42.09 billion in revenue from its pharmaceutical business, excluding bio-pharmaceuticals.
Estimated Discount To Fair Value: 48.2%
Strides Pharma Science is trading at ₹1,401, significantly below its estimated fair value of ₹2,704.3. Despite recent executive changes and partial redemption of non-convertible debentures worth ₹740 million, the company’s earnings are forecast to grow 65.18% annually over the next three years. Strides' revenue growth rate of 11% per year is expected to outpace the Indian market average of 10.1%, making it an attractive option for investors seeking undervalued stocks based on cash flows.