In This Article:
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% |
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%.
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.