Unveiling Rajesh Exports And Two Additional Stocks Believed To Be Trading Below Fair Value On The Indian Exchange

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Despite a flat performance over the past week, the Indian market has shown remarkable growth with a 45% increase over the last year and earnings expected to grow by 16% annually. In such a thriving environment, identifying stocks that are trading below their fair value could present opportunities for informed investment decisions.

Top 10 Undervalued Stocks Based On Cash Flows In India

Name

Current Price

Fair Value (Est)

Discount (Est)

HEG (NSEI:HEG)

₹2123.00

₹3296.21

35.6%

IOL Chemicals and Pharmaceuticals (BSE:524164)

₹420.35

₹636.71

34%

Updater Services (NSEI:UDS)

₹314.35

₹538.92

41.7%

Vedanta (NSEI:VEDL)

₹447.70

₹742.42

39.7%

Rajesh Exports (NSEI:RAJESHEXPO)

₹314.75

₹507.64

38%

Strides Pharma Science (NSEI:STAR)

₹934.45

₹1664.05

43.8%

Mahindra Logistics (NSEI:MAHLOG)

₹538.90

₹912.33

40.9%

Delhivery (NSEI:DELHIVERY)

₹377.00

₹746.22

49.5%

PVR INOX (NSEI:PVRINOX)

₹1460.20

₹2550.18

42.7%

Godrej Properties (NSEI:GODREJPROP)

₹3294.10

₹5716.33

42.4%

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

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

Rajesh Exports

Overview: Rajesh Exports Limited, primarily engaged in refining, manufacturing, wholesaling, and retailing gold and diamond jewelry and various gold products in India, has a market capitalization of approximately ₹92.93 billion.

Operations: The company's revenue from gold products totals approximately ₹280.92 billion.

Estimated Discount To Fair Value: 38%

Rajesh Exports, priced at ₹314.75, is trading 38% below its estimated fair value of ₹507.64, indicating significant undervaluation based on cash flows. Despite a modest profit margin decline from 0.4% to 0.1%, the company's earnings are expected to grow substantially by 31.7% annually over the next three years, outpacing the Indian market's growth rate of 15.8%. However, its forecasted revenue growth at 14.1% annually is robust but does not exceed the high threshold of 20%.

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

Texmaco Rail & Engineering

Overview: Texmaco Rail & Engineering Limited is an engineering and infrastructure company based in India, operating both domestically and internationally, with a market capitalization of approximately ₹113.50 billion.

Operations: The company generates revenue through three primary segments: the Freight Car Division at ₹27.50 billion, Infra - Electrical at ₹2.26 billion, and Infra - Rail & Green Energy at ₹5.27 billion.