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Exploring Value Opportunities In Three Indian Exchange Stocks

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Despite a flat performance over the last 7 days, the Indian market has shown remarkable growth, rising by 45% over the past year with earnings expected to grow by 16% annually. In this context, identifying undervalued stocks can be particularly compelling, as they may offer significant value opportunities against this overall positive market trend.

Top 10 Undervalued Stocks Based On Cash Flows In India

Name

Current Price

Fair Value (Est)

Discount (Est)

HEG (NSEI:HEG)

₹2114.50

₹3285.57

35.6%

IOL Chemicals and Pharmaceuticals (BSE:524164)

₹420.90

₹636.71

33.9%

Updater Services (NSEI:UDS)

₹323.30

₹537.78

39.9%

Vedanta (NSEI:VEDL)

₹459.45

₹746.31

38.4%

Rajesh Exports (NSEI:RAJESHEXPO)

₹306.10

₹506.46

39.6%

Strides Pharma Science (NSEI:STAR)

₹908.40

₹1664.05

45.4%

Mahindra Logistics (NSEI:MAHLOG)

₹524.75

₹906.88

42.1%

Delhivery (NSEI:DELHIVERY)

₹378.35

₹742.39

49%

PVR INOX (NSEI:PVRINOX)

₹1459.95

₹2559.12

43%

Godrej Properties (NSEI:GODREJPROP)

₹3301.40

₹5641.71

41.5%

Click here to see the full list of 20 stocks from our Undervalued Indian Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of from the screener.

Fusion Finance

Overview: Fusion Finance Limited is a non-banking financial company in India that offers microfinance lending to women entrepreneurs in rural and semi-urban areas, with a market capitalization of approximately ₹45.18 billion.

Operations: The company generates revenue primarily through microfinance activities, totaling approximately ₹12.57 billion.

Estimated Discount To Fair Value: 10.8%

Fusion Finance, priced at ₹441.4 against a fair value of ₹494.67, shows potential underestimation in the market. With earnings growth forecasted at 18.2% annually—surpassing the broader Indian market's 15.9%—and revenue growth also expected to outpace at 24.8%, the company's financial trajectory appears robust despite recent regulatory challenges involving a GST notice for INR 1,17,90,099 which it contests as manageable without significant impact on operations. However, concerns about debt coverage by operating cash flow and significant insider selling could indicate caution among investors.

NSEI:FUSION Discounted Cash Flow as at Jul 2024
NSEI:FUSION Discounted Cash Flow as at Jul 2024

Inox Wind Energy

Overview: Inox Wind Energy Limited, along with its subsidiaries, specializes in manufacturing and selling wind turbine generators in India, boasting a market capitalization of approximately ₹97.20 billion.

Operations: The company generates revenue primarily through the production and sale of wind turbine generators, totaling ₹17.46 billion.