Top Undervalued Indian Exchange Stocks Based on Valuation Estimates for June 2024
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The Indian market has shown robust growth with a 45% increase over the past year, despite remaining flat in the last week. In this context of expected earnings growth of 16% per annum, identifying undervalued stocks can be particularly compelling for investors looking for potential opportunities.
Top 10 Undervalued Stocks Based On Cash Flows In India
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Updater Services (NSEI:UDS) | ?298.05 | ?477.32 | 37.6% |
| IOL Chemicals and Pharmaceuticals (BSE:524164) | ?405.30 | ?574.52 | 29.5% |
| Vedanta (NSEI:VEDL) | ?443.30 | ?631.96 | 29.9% |
| Mahindra Logistics (NSEI:MAHLOG) | ?489.65 | ?795.60 | 38.5% |
| Strides Pharma Science (NSEI:STAR) | ?941.40 | ?1520.38 | 38.1% |
| TV18 Broadcast (NSEI:TV18BRDCST) | ?41.40 | ?69.61 | 40.5% |
| PVR INOX (NSEI:PVRINOX) | ?1469.25 | ?2242.44 | 34.5% |
| Delhivery (NSEI:DELHIVERY) | ?400.10 | ?604.99 | 33.9% |
| Camlin Fine Sciences (BSE:532834) | ?104.30 | ?155.79 | 33.1% |
| Godrej Properties (NSEI:GODREJPROP) | ?3110.65 | ?4582.64 | 32.1% |
Here's a peek at a few of the choices from the screener
Godrej Properties
Overview: Godrej Properties Limited focuses on real estate construction and development in India, with a market capitalization of approximately ?864.94 billion.
Operations: The company generates revenue primarily from real estate, totaling ?29.95 billion, with a smaller segment in hospitality bringing in ?0.41 billion.
Estimated Discount To Fair Value: 32.1%
Godrej Properties, despite a recent dip in quarterly sales to INR 14.26 billion, shows robust annual growth with revenue reaching INR 43.34 billion and net income at INR 7.25 billion. The company's stock is trading at a significant discount of 32.1% below estimated fair value, suggesting undervaluation based on discounted cash flow analysis. Forecasted earnings growth of approximately 35.7% annually outpaces the broader Indian market, although concerns include poor coverage of debt by operating cash flow and one-off items affecting earnings quality.
Mahindra Logistics
Overview: Mahindra Logistics Limited operates as a provider of integrated logistics and mobility solutions both in India and globally, with a market capitalization of approximately ?35.28 billion.
Operations: The company operates in the logistics and mobility sectors, both domestically and internationally.
Estimated Discount To Fair Value: 38.5%