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The Indian stock market has shown robust growth, climbing 2.4% over the past week and an impressive 46% increase over the last year, with earnings expected to grow by 16% annually. In such a thriving market, identifying undervalued stocks can offer investors potential opportunities for substantial gains.
Top 10 Undervalued Stocks Based On Cash Flows In India
Name | Current Price | Fair Value (Est) | Discount (Est) |
Shyam Metalics and Energy (NSEI:SHYAMMETL) | ₹712.50 | ₹1021.78 | 30.3% |
HEG (NSEI:HEG) | ₹2208.90 | ₹3310.64 | 33.3% |
Updater Services (NSEI:UDS) | ₹306.45 | ₹538.26 | 43.1% |
Vedanta (NSEI:VEDL) | ₹465.65 | ₹744.09 | 37.4% |
Rajesh Exports (NSEI:RAJESHEXPO) | ₹284.70 | ₹506.43 | 43.8% |
Strides Pharma Science (NSEI:STAR) | ₹931.95 | ₹1664.05 | 44% |
Mahindra Logistics (NSEI:MAHLOG) | ₹521.10 | ₹909.08 | 42.7% |
Delhivery (NSEI:DELHIVERY) | ₹394.45 | ₹747.18 | 47.2% |
PVR INOX (NSEI:PVRINOX) | ₹1458.15 | ₹2542.94 | 42.7% |
Godrej Properties (NSEI:GODREJPROP) | ₹3312.00 | ₹5764.61 | 42.5% |
Let's explore several standout options from the results in the screener
Godrej Properties
Overview: Godrej Properties Limited operates in real estate construction and development across India, with a market capitalization of approximately ₹920.92 billion.
Operations: The company generates revenues primarily from real estate construction and development, amounting to approximately ₹29.95 billion, with a smaller segment in hospitality contributing around ₹0.41 billion.
Estimated Discount To Fair Value: 42.5%
Godrej Properties, priced at ₹3312, trades significantly below its estimated fair value of ₹5764.61, reflecting a deep undervaluation based on discounted cash flow models. Despite challenges in debt coverage by operating cash flow, the company shows robust prospects with expected earnings growth of 35.9% annually over the next three years and revenue growth projections surpassing 20% annually. Recent acquisitions in Bengaluru and Pune underline aggressive expansion, enhancing future revenue potential significantly to approximately INR 30 billion combined.
Inox Wind Energy
Overview: Inox Wind Energy Limited, along with its subsidiaries, specializes in the manufacturing and selling of wind turbine generators in India, boasting a market capitalization of approximately ₹92.14 billion.
Operations: The primary revenue segment for the company is derived from the manufacturing of wind turbine generators, generating ₹17.46 billion.