3 Indian Exchange Stocks That Might Be Trading Below Their Estimated Value

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In the last week, the Indian market has stayed flat, but over the past 12 months, it has risen by an impressive 44%, with earnings expected to grow by 17% per annum in the coming years. In this context, identifying stocks that are trading below their estimated value can offer potential opportunities for investors looking to capitalize on future growth.

Top 10 Undervalued Stocks Based On Cash Flows In India

Name

Current Price

Fair Value (Est)

Discount (Est)

Everest Kanto Cylinder (NSEI:EKC)

₹173.00

₹305.82

43.4%

Godfrey Phillips India (BSE:500163)

₹5270.65

₹8904.96

40.8%

Krsnaa Diagnostics (NSEI:KRSNAA)

₹687.10

₹1165.33

41%

Yatharth Hospital & Trauma Care Services (NSEI:YATHARTH)

₹481.35

₹792.08

39.2%

Updater Services (NSEI:UDS)

₹323.20

₹622.28

48.1%

IOL Chemicals and Pharmaceuticals (BSE:524164)

₹400.20

₹762.32

47.5%

Texmaco Rail & Engineering (NSEI:TEXRAIL)

₹252.75

₹504.57

49.9%

Prataap Snacks (NSEI:DIAMONDYD)

₹856.95

₹1509.79

43.2%

Patel Engineering (BSE:531120)

₹55.67

₹91.16

38.9%

Mahindra Logistics (NSEI:MAHLOG)

₹501.75

₹998.07

49.7%

Click here to see the full list of 32 stocks from our Undervalued Indian Stocks Based On Cash Flows screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Mahindra Logistics

Overview: Mahindra Logistics Limited offers integrated logistics and mobility solutions both in India and internationally, with a market cap of ₹36.15 billion.

Operations: The company's revenue segments include Supply Chain Management, generating ₹53.04 billion, and Enterprise Mobility Services, contributing ₹3.29 billion.

Estimated Discount To Fair Value: 49.7%

Mahindra Logistics appears undervalued based on cash flows, trading at ₹501.75, significantly below its estimated fair value of ₹998.07. Despite regulatory penalties and a recent net loss of INR 93.2 million for Q1 2024, the company's revenue is forecast to grow at 12% annually, outpacing the Indian market's growth rate. Additionally, Mahindra Logistics is expected to achieve profitability within three years with a high return on equity forecasted at 24.1%.

NSEI:MAHLOG Discounted Cash Flow as at Aug 2024
NSEI:MAHLOG Discounted Cash Flow as at Aug 2024

NIIT Learning Systems

Overview: NIIT Learning Systems Limited, operating as NIIT Managed Training Services, provides managed training services across North America, Europe, Asia, and Oceania with a market cap of ₹63.00 billion.

Operations: The company generates revenue primarily from Education & Training Services, amounting to ₹15.78 billion.