Exploring Undervalued Opportunities: 3 Indian Exchange Stocks With Intrinsic Discounts Ranging From 21.6% To 36.6%

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The Indian market has shown robust growth, climbing 2.3% in the last week and an impressive 45% over the past year, with earnings expected to grow by 16% annually. In such a thriving environment, identifying stocks that are trading below their intrinsic value could present attractive opportunities for investors.

Top 10 Undervalued Stocks Based On Cash Flows In India

Name

Current Price

Fair Value (Est)

Discount (Est)

Updater Services (NSEI:UDS)

₹290.30

₹476.87

39.1%

Allied Digital Services (NSEI:ADSL)

₹147.40

₹227.88

35.3%

IOL Chemicals and Pharmaceuticals (BSE:524164)

₹412.80

₹574.52

28.1%

Mahindra Logistics (NSEI:MAHLOG)

₹470.30

₹801.15

41.3%

Strides Pharma Science (NSEI:STAR)

₹987.75

₹1520.38

35%

TV18 Broadcast (NSEI:TV18BRDCST)

₹43.00

₹70.84

39.3%

PVR INOX (NSEI:PVRINOX)

₹1403.25

₹2214.17

36.6%

Delhivery (NSEI:DELHIVERY)

₹398.75

₹612.48

34.9%

Camlin Fine Sciences (BSE:532834)

₹108.82

₹156.58

30.5%

Godrej Properties (NSEI:GODREJPROP)

₹3088.90

₹4581.17

32.6%

Click here to see the full list of 15 stocks from our Undervalued Indian Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen

PVR INOX

Overview: PVR INOX Limited operates as a theatrical exhibition company, focusing on the exhibition, distribution, and production of movies in India and Sri Lanka, with a market capitalization of approximately ₹137.69 billion.

Operations: The company generates ₹60.71 billion from movie exhibition and ₹3.17 billion from various other activities including movie production and distribution, as well as gaming.

Estimated Discount To Fair Value: 36.6%

PVR INOX, priced at ₹1403.25, is significantly undervalued compared to its fair value estimate of ₹2208.54, reflecting a potential opportunity based on discounted cash flow analysis. Despite currently trading 36.5% below its estimated fair value and showing strong future profit growth expectations with profitability anticipated within three years, challenges remain such as a lower forecast return on equity at 9.8%. Recent strategic expansions and executive changes indicate proactive management but need to translate effectively into financial performance to realize underlying value fully.

NSEI:PVRINOX Discounted Cash Flow as at Jun 2024
NSEI:PVRINOX Discounted Cash Flow as at Jun 2024

Shyam Metalics and Energy

Overview: Shyam Metalics and Energy Limited is an integrated metal company based in India, specializing in the production and sale of long steel products and ferro alloys, both domestically and internationally, with a market capitalization of approximately ₹181.86 billion.