Examining Three Indian Exchange Stocks With Estimated Intrinsic Discounts Ranging From 33.2% To 40.1%
In This Article:
The Indian stock market has shown remarkable resilience, remaining stable over the last week and achieving a robust 45% growth over the past year with earnings expected to grow by 16% annually. In such a thriving market, identifying undervalued stocks can be particularly rewarding as they may represent opportunities for significant intrinsic value relative to their current trading prices.
Top 10 Undervalued Stocks Based On Cash Flows In India
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Updater Services (NSEI:UDS) | ?285.50 | ?476.60 | 40.1% |
| Allied Digital Services (NSEI:ADSL) | ?161.02 | ?229.61 | 29.9% |
| Vedanta (NSEI:VEDL) | ?442.10 | ?636.19 | 30.5% |
| Mahindra Logistics (NSEI:MAHLOG) | ?481.45 | ?804.09 | 40.1% |
| Strides Pharma Science (NSEI:STAR) | ?954.40 | ?1520.38 | 37.2% |
| TV18 Broadcast (NSEI:TV18BRDCST) | ?41.62 | ?69.84 | 40.4% |
| Delhivery (NSEI:DELHIVERY) | ?398.15 | ?611.98 | 34.9% |
| PVR INOX (NSEI:PVRINOX) | ?1451.70 | ?2224.00 | 34.7% |
| Camlin Fine Sciences (BSE:532834) | ?106.80 | ?156.65 | 31.8% |
| Godrej Properties (NSEI:GODREJPROP) | ?3066.55 | ?4592.04 | 33.2% |
Let's explore several standout options from the results in the screener
Godrej Properties
Overview: Godrej Properties Limited focuses on real estate construction and development in India, with a market capitalization of approximately ?855.64 billion.
Operations: The company generates its revenue primarily from real estate development, amounting to ?29.95 billion, with a smaller contribution from the hospitality sector at ?0.41 billion.
Estimated Discount To Fair Value: 33.2%
Godrej Properties, priced at ?3066.55, is considerably undervalued with a fair value estimate of ?4592.04, reflecting a 33.2% discount. Despite some financial results being impacted by large one-off items, the company has demonstrated robust growth with earnings increasing by 28.7% annually over the past five years and expected to grow significantly in the next three years. However, its debt is poorly covered by operating cash flow which poses a risk to its financial stability.
Mahindra Logistics
Overview: Mahindra Logistics Limited operates in India and globally, offering integrated logistics and mobility solutions with a market capitalization of approximately ?35.34 billion.
Operations: The company generates revenue primarily through two segments: Supply Chain Management at ?51.78 billion and Enterprise Mobility Services at ?3.28 billion.