July 2024 Insight Into Indian Exchange Stocks Estimated Below Value
In This Article:
The Indian stock market has shown robust growth, rising by 44% over the past 12 months and gaining 1.1% in just the last week, with earnings expected to grow by 16% annually. In such a thriving market, identifying stocks that are potentially undervalued could offer investors a unique opportunity for value investment.
Top 10 Undervalued Stocks Based On Cash Flows In India
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Updater Services (NSEI:UDS) | ?297.25 | ?477.81 | 37.8% |
| IOL Chemicals and Pharmaceuticals (BSE:524164) | ?403.65 | ?574.52 | 29.7% |
| Vedanta (NSEI:VEDL) | ?454.00 | ?635.30 | 28.5% |
| Strides Pharma Science (NSEI:STAR) | ?948.85 | ?1520.38 | 37.6% |
| Mahindra Logistics (NSEI:MAHLOG) | ?525.05 | ?800.49 | 34.4% |
| TV18 Broadcast (NSEI:TV18BRDCST) | ?41.18 | ?69.41 | 40.7% |
| PVR INOX (NSEI:PVRINOX) | ?1427.35 | ?2229.08 | 36% |
| Delhivery (NSEI:DELHIVERY) | ?400.15 | ?604.58 | 33.8% |
| Camlin Fine Sciences (BSE:532834) | ?103.22 | ?155.05 | 33.4% |
| Godrej Properties (NSEI:GODREJPROP) | ?3207.90 | ?4589.46 | 30.1% |
We're going to check out a few of the best picks from our screener tool
Fusion Micro Finance
Overview: Fusion Micro Finance Limited is a non-banking financial company in India that offers microfinance lending services to women entrepreneurs in rural and peri-rural areas, with a market capitalization of approximately ?45.15 billion.
Operations: The company generates revenue primarily through microfinance activities, totaling approximately ?12.57 billion.
Estimated Discount To Fair Value: 10.4%
Fusion Micro Finance, now Fusion Finance Limited, is trading at ?448.75, below its estimated fair value of ?500.61, indicating a 10.4% undervaluation based on discounted cash flow analysis. Despite robust revenue growth projections at 24.9% annually—outpacing the Indian market's 9.6%—its debt is poorly covered by operating cash flow, and return on equity is expected to be modest at 19.3%. Recent regulatory challenges and significant insider selling could pose risks, though the company has shown strong earnings growth in the past five years.
Godrej Properties
Overview: Godrej Properties Limited operates primarily in real estate construction and development across India, with a market capitalization of approximately ?891.98 billion.
Operations: The company's revenue is mainly derived from real estate construction and development, totaling approximately ?29.95 billion, with a smaller contribution of ?0.41 billion from the hospitality sector.