Estimated Discount To Fair Value: 42.5%

Godrej Properties, with a current price of ?3301.1, appears undervalued compared to the DCF-derived fair value of ?5737.83. Despite trading 42.5% below this estimate, its financial performance shows promise with significant revenue growth at 31.7% annually—surpassing the Indian market's 9.6%. However, concerns linger as its debt is poorly covered by operating cash flow and its Return on Equity is expected to remain low at 14.1% in three years' time, despite robust earnings growth forecasts of 35.72% annually.

• The growth report we've compiled suggests that Godrej Properties' future prospects could be on the up.

• Click to explore a detailed breakdown of our findings in Godrej Properties' balance sheet health report.

RITES

Overview: RITES Limited offers consultancy, engineering, and project management services across various sectors including railways, highways, and renewable energy, with a market cap of approximately ?168.30 billion.

Operations: RITES Limited generates revenue through several segments, including domestic consultancy at ?11.94 billion, domestic turnkey construction projects at ?9.03 billion, domestic leasing at ?1.38 billion, export sales at ?1.03 billion, and consultancy abroad at ?0.95 billion.

Estimated Discount To Fair Value: 25.5%

RITES, priced at ?700.35, trades significantly below its estimated fair value of ?939.54, indicating potential undervaluation based on discounted cash flows. Despite a modest dividend yield of 2.57% that is not well-covered by earnings or cash flows, the company's revenue and earnings growth are projected to outpace the broader Indian market with forecasts of 13.4% and 18.5% respectively per year. Recent strategic MoUs with entities like DMRC and DVC highlight expanding operational scope which could support future financial performance.

• Our expertly prepared growth report on RITES implies its future financial outlook may be stronger than recent results.

• Unlock comprehensive insights into our analysis of RITES stock in this financial health report.

Key Takeaways

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NSEI:DELHIVERY NSEI:GODREJPROP and NSEI:RITES.

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