3 Indian Exchange Stocks Estimated To Be Undervalued By 27.6% To 36.1%

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The Indian market has shown robust performance, climbing 46% over the past year with earnings expected to grow by 16% annually. In such a thriving environment, identifying stocks that appear undervalued could present potential opportunities for investors looking for growth at a reasonable price.

Top 10 Undervalued Stocks Based On Cash Flows In India

Name

Current Price

Fair Value (Est)

Discount (Est)

Updater Services (NSEI:UDS)

?290.05

?477.16

39.2%

Allied Digital Services (NSEI:ADSL)

?163.08

?228.94

28.8%

IOL Chemicals and Pharmaceuticals (BSE:524164)

?410.20

?574.52

28.6%

Mahindra Logistics (NSEI:MAHLOG)

?486.55

?801.12

39.3%

Strides Pharma Science (NSEI:STAR)

?946.75

?1520.38

37.7%

TV18 Broadcast (NSEI:TV18BRDCST)

?42.66

?70.66

39.6%

PVR INOX (NSEI:PVRINOX)

?1421.10

?2222.35

36.1%

Delhivery (NSEI:DELHIVERY)

?392.45

?611.60

35.8%

Camlin Fine Sciences (BSE:532834)

?107.43

?156.85

31.5%

Godrej Properties (NSEI:GODREJPROP)

?3111.25

?4553.24

31.7%

Click here to see the full list of 16 stocks from our Undervalued Indian Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool

Godrej Properties

Overview: Godrej Properties Limited operates primarily in real estate construction and development across India, with a market capitalization of approximately ?836.20 billion.

Operations: The company generates revenue primarily from real estate construction and development, totaling approximately ?29.95 billion, with a smaller segment in hospitality bringing in about ?0.41 billion.

Estimated Discount To Fair Value: 31.7%

Godrej Properties, with a current price of ?3111.25, appears undervalued based on DCF analysis, suggesting a fair value of ?4553.24. Despite this potential underpricing, concerns persist as the company's debt is not well covered by operating cash flows. However, recent financial reports show robust growth with annual earnings increasing significantly and revenue growth outpacing the Indian market average. This trend is supported by strong sales results and an expanded booking value in FY 2024.

NSEI:GODREJPROP Discounted Cash Flow as at Jun 2024
NSEI:GODREJPROP Discounted Cash Flow as at Jun 2024

PVR INOX

Overview: PVR INOX Limited operates as a theatrical exhibition company involved in the exhibition, distribution, and production of movies across India and Sri Lanka, with a market capitalization of approximately ?140.99 billion.

Operations: The company generates revenue primarily from movie exhibition, totaling ?60.71 billion, and other related activities which contribute an additional ?3.17 billion.