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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% |
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.
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.