Exploring Undervalued Stocks On The Indian Exchange With Delhivery And Two Others
In This Article:
Despite a flat performance over the last week, the Indian market has shown robust growth, rising 45% in the past 12 months with earnings expected to grow by 16% annually. In this context, identifying undervalued stocks like Delhivery can offer investors potential opportunities for growth in line with these encouraging market trends.
Top 10 Undervalued Stocks Based On Cash Flows In India
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| HEG (NSEI:HEG) | ?2096.15 | ?3275.02 | 36% |
| IOL Chemicals and Pharmaceuticals (BSE:524164) | ?417.60 | ?636.71 | 34.4% |
| Updater Services (NSEI:UDS) | ?324.25 | ?538.60 | 39.8% |
| Vedanta (NSEI:VEDL) | ?455.50 | ?747.19 | 39% |
| Rajesh Exports (NSEI:RAJESHEXPO) | ?309.50 | ?506.27 | 38.9% |
| Strides Pharma Science (NSEI:STAR) | ?942.55 | ?1664.05 | 43.4% |
| Mahindra Logistics (NSEI:MAHLOG) | ?534.50 | ?902.60 | 40.8% |
| Delhivery (NSEI:DELHIVERY) | ?382.70 | ?738.18 | 48.2% |
| PVR INOX (NSEI:PVRINOX) | ?1438.30 | ?2547.94 | 43.6% |
| Godrej Properties (NSEI:GODREJPROP) | ?3381.40 | ?5564.57 | 39.2% |
Let's explore several standout options from the results in the screener.
Delhivery
Overview: Delhivery Limited offers supply chain solutions across various sectors including e-commerce, FMCG, and manufacturing in India, with a market capitalization of approximately ?282.89 billion.
Operations: The company's revenue from logistics services totals ?81.42 billion.
Estimated Discount To Fair Value: 48.2%
Delhivery, priced at ?382.7, trades significantly below its estimated fair value of ?738.18, reflecting a potential undervaluation based on cash flow analysis. Despite a forecasted low return on equity of 7% in three years, the company is expected to grow earnings by 61.67% annually and become profitable within the same period. Recent strategic moves include reclassifying share capital and expanding into drone technology which could impact future cash flows and valuation positively.
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Our growth report here indicates Delhivery may be poised for an improving outlook.
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Delve into the full analysis health report here for a deeper understanding of Delhivery.
Godrej Properties
Overview: Godrej Properties Limited, operating in India, focuses on real estate construction and development with a market capitalization of approximately ?94.02 billion.
Operations: The company generates revenue primarily from real estate development, totaling ?29.95 billion, with a smaller segment in hospitality bringing in ?0.41 billion.
Estimated Discount To Fair Value: 39.2%
Godrej Properties, valued at ?3381.4, is significantly undervalued with a fair value estimate of ?5564.57, indicating strong potential based on cash flow analysis. Despite concerns over debt coverage by operating cash flow and a modest forecasted Return on Equity of 14.4%, the company's earnings and revenue growth projections are robust at 36.22% and 31.7% annually respectively, outpacing the Indian market averages substantially. Recent acquisitions in Bengaluru and Pune underline aggressive expansion strategies, enhancing its future revenue streams estimated at billions in INR.