In This Article:
Over the last 7 days, the Indian market has remained flat. However, over the past 12 months, it has risen by an impressive 44%, with earnings forecasted to grow by 17% annually. In this context, identifying stocks that are trading below their intrinsic value can offer significant opportunities for investors looking to capitalize on potential growth.
Top 10 Undervalued Stocks Based On Cash Flows In India
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Everest Kanto Cylinder (NSEI:EKC) | ₹190.68 | ₹305.60 | 37.6% |
| Krsnaa Diagnostics (NSEI:KRSNAA) | ₹726.90 | ₹1165.33 | 37.6% |
| Yatharth Hospital & Trauma Care Services (NSEI:YATHARTH) | ₹476.40 | ₹792.08 | 39.9% |
| Venus Pipes and Tubes (NSEI:VENUSPIPES) | ₹2207.05 | ₹4359.43 | 49.4% |
| Updater Services (NSEI:UDS) | ₹324.60 | ₹621.89 | 47.8% |
| IOL Chemicals and Pharmaceuticals (BSE:524164) | ₹434.10 | ₹762.32 | 43.1% |
| Prataap Snacks (NSEI:DIAMONDYD) | ₹874.75 | ₹1509.79 | 42.1% |
| Patel Engineering (BSE:531120) | ₹53.85 | ₹90.83 | 40.7% |
| Manorama Industries (BSE:541974) | ₹834.15 | ₹1665.51 | 49.9% |
| Strides Pharma Science (NSEI:STAR) | ₹1276.75 | ₹2032.10 | 37.2% |
Let's explore several standout options from the results in the screener.
Arvind Fashions
Overview: Arvind Fashions Limited is involved in the wholesale and retail trading of garments and accessories both in India and internationally, with a market cap of ₹63.30 billion.
Operations: Branded Apparel, including garments and accessories, is a key revenue segment for Arvind Fashions Limited, generating ₹43.47 billion.
Estimated Discount To Fair Value: 14.4%
Arvind Fashions' recent earnings report shows a significant turnaround with net income rising to ₹13.2 million from a loss of ₹164.3 million year-over-year, highlighting improved cash flows. Trading at ₹487.5, it is undervalued against its estimated fair value of ₹569.31 and is expected to see annual profit growth of 46.9%. However, interest payments are not well covered by earnings, and the dividend track record remains unstable despite proposed increases.
Quess
Overview: Quess Corp Limited is a business services provider operating in India, South East Asia, the Middle East, and North America with a market cap of ₹105.16 billion.
Operations: Quess generates revenue from four main segments: Product Led Business (₹4.29 billion), Workforce Management (₹138.44 billion), Operating Asset Management (₹28.43 billion), and Global Technology Solutions excluding Product Led Business (₹23.87 billion).