Exploring Three Indian Exchange Stocks With Intrinsic Value Discounts Ranging From 14.7% To 39.9%
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The Indian stock market has shown robust growth, rising 1.1% over the past week and achieving a remarkable 45% increase over the last year, with earnings expected to continue growing at an annual rate of 16%. In this thriving market environment, identifying stocks that are trading below their intrinsic value could present attractive opportunities for investors seeking potential gains.
Top 10 Undervalued Stocks Based On Cash Flows In India
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| HEG (NSEI:HEG) | ?2096.15 | ?3284.02 | 36.2% |
| IOL Chemicals and Pharmaceuticals (BSE:524164) | ?417.60 | ?636.71 | 34.4% |
| Updater Services (NSEI:UDS) | ?324.25 | ?538.89 | 39.8% |
| Vedanta (NSEI:VEDL) | ?455.50 | ?744.79 | 38.8% |
| Rajesh Exports (NSEI:RAJESHEXPO) | ?309.50 | ?507.53 | 39% |
| Strides Pharma Science (NSEI:STAR) | ?942.55 | ?1664.05 | 43.4% |
| Mahindra Logistics (NSEI:MAHLOG) | ?534.50 | ?906.03 | 41% |
| Delhivery (NSEI:DELHIVERY) | ?382.70 | ?741.32 | 48.4% |
| PVR INOX (NSEI:PVRINOX) | ?1438.30 | ?2546.10 | 43.5% |
| Godrej Properties (NSEI:GODREJPROP) | ?3381.40 | ?5621.73 | 39.9% |
Here's a peek at a few of the choices from the screener.
Godrej Properties
Overview: Godrej Properties Limited operates in real estate construction and development across India, with a market capitalization of approximately ?939.83 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 around ?0.41 billion.
Estimated Discount To Fair Value: 39.9%
Godrej Properties, priced at ?3381.4, is significantly undervalued by 39.9%, with a fair value estimated at ?5621.73. Recent acquisitions in Bengaluru and Pune highlight aggressive expansion, enhancing future revenue potentials to approximately INR 30 billion. Despite earnings growing by 28.7% annually over the past five years, debt concerns persist as it's poorly covered by operating cash flow. However, robust forecasted annual earnings growth of 36.2% and revenue growth projections outpacing the market suggest promising upside potential.
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 capitalization of approximately ?92.81 billion.
Operations: The company's revenue is generated from Workforce Management (?134.42 billion), Operating Asset Management (?28.01 billion), and Global Technology Solutions excluding Product Led Business (?23.40 billion).