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Over the last 7 days, the Indian market has dropped 1.7%, but it has risen by 43% over the past year, with earnings expected to grow by 17% annually in the coming years. In this context, identifying undervalued stocks like Flair Writing Industries can be crucial for investors looking to capitalize on potential growth opportunities amidst fluctuating market conditions.
Top 10 Undervalued Stocks Based On Cash Flows In India
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| HEG (NSEI:HEG) | ₹2058.80 | ₹3911.74 | 47.4% |
| Shyam Metalics and Energy (NSEI:SHYAMMETL) | ₹744.45 | ₹1127.96 | 34% |
| S Chand (NSEI:SCHAND) | ₹225.48 | ₹352.53 | 36% |
| Krsnaa Diagnostics (NSEI:KRSNAA) | ₹695.55 | ₹1165.33 | 40.3% |
| Titagarh Rail Systems (NSEI:TITAGARH) | ₹1348.70 | ₹2160.82 | 37.6% |
| RITES (NSEI:RITES) | ₹685.15 | ₹1047.32 | 34.6% |
| Prataap Snacks (NSEI:DIAMONDYD) | ₹880.80 | ₹1509.79 | 41.7% |
| Texmaco Rail & Engineering (NSEI:TEXRAIL) | ₹244.30 | ₹395.48 | 38.2% |
| Piramal Pharma (NSEI:PPLPHARMA) | ₹181.52 | ₹289.56 | 37.3% |
| Strides Pharma Science (NSEI:STAR) | ₹1142.70 | ₹2032.10 | 43.8% |
Let's dive into some prime choices out of the screener.
Flair Writing Industries
Overview: Flair Writing Industries Limited manufactures and sells writing instruments, stationeries, and other allied products in India and internationally, with a market cap of ₹32.94 billion.
Operations: Revenue segments include writing instruments, stationeries, and other allied products.
Estimated Discount To Fair Value: 15.7%
Flair Writing Industries appears undervalued based on cash flows, trading at ₹312.5, below its estimated fair value of ₹370.71. Despite recent enforcement actions and a slight decline in net income for Q1 2024, the company’s earnings are forecast to grow significantly at 20.9% per year over the next three years, outpacing the Indian market's average growth rate of 16.8%. Additionally, revenue is expected to increase by 15.9% annually, indicating strong future prospects despite current challenges.
Krsnaa Diagnostics
Overview: Krsnaa Diagnostics Limited provides diagnostic services and has a market cap of ₹22.46 billion.
Operations: The company generates revenue from diagnostic services.
Estimated Discount To Fair Value: 40.3%
Krsnaa Diagnostics Limited is trading at ₹695.55, significantly below its estimated fair value of ₹1,165.33. The company's Q1 2024 earnings report showed a notable increase in net income to ₹179.21 million from ₹146.43 million year-over-year, and revenue rose to ₹1,775.48 million from ₹1,438.01 million a year ago. Despite recent executive changes, Krsnaa's earnings are forecast to grow 36.85% annually over the next three years, outpacing the Indian market's average growth rate of 16.8%.