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The Indian market has stayed flat over the past 7 days but is up an impressive 43% over the past year, with earnings forecasted to grow by 17% annually. In this robust environment, identifying stocks trading below their intrinsic value can offer significant opportunities for investors seeking to capitalize on potential growth.
Top 10 Undervalued Stocks Based On Cash Flows In India
Name | Current Price | Fair Value (Est) | Discount (Est) |
Everest Kanto Cylinder (NSEI:EKC) | ₹189.79 | ₹306.08 | 38% |
Prataap Snacks (NSEI:DIAMONDYD) | ₹813.10 | ₹1509.79 | 46.1% |
Apollo Pipes (BSE:531761) | ₹649.20 | ₹1152.78 | 43.7% |
Venus Pipes and Tubes (NSEI:VENUSPIPES) | ₹2219.20 | ₹4431.87 | 49.9% |
IOL Chemicals and Pharmaceuticals (BSE:524164) | ₹472.40 | ₹762.32 | 38% |
RITES (NSEI:RITES) | ₹664.50 | ₹1037.00 | 35.9% |
Patel Engineering (BSE:531120) | ₹58.37 | ₹93.85 | 37.8% |
Artemis Medicare Services (NSEI:ARTEMISMED) | ₹274.45 | ₹445.15 | 38.3% |
Rajesh Exports (NSEI:RAJESHEXPO) | ₹296.65 | ₹587.88 | 49.5% |
Manorama Industries (BSE:541974) | ₹835.90 | ₹1665.51 | 49.8% |
Let's dive into some prime choices out of the screener.
CMS Info Systems
Overview: CMS Info Systems Limited, with a market cap of ₹86.52 billion, operates as a cash management company in India through its subsidiaries.
Operations: The company's revenue segments include Card Services (₹890.75 million), Managed Services (₹8.54 billion), and Cash Management Services (₹15.11 billion).
Estimated Discount To Fair Value: 16.3%
CMS Info Systems, trading at ₹531.6, is currently undervalued based on discounted cash flow analysis with a fair value estimate of ₹634.86. Despite an unstable dividend track record, the company has shown consistent earnings growth of 20.8% per year over the past five years and is forecasted to grow earnings at 16.99% annually, outpacing the Indian market's average growth rate of 16.9%. Recent executive changes and dividend declarations further highlight its dynamic operational environment.
Everest Kanto Cylinder
Overview: Everest Kanto Cylinder Limited, along with its subsidiaries, manufactures and sells gas cylinders in India and has a market cap of ₹21.30 billion.
Operations: Everest Kanto Cylinder Limited generates revenue primarily from the manufacture and sale of gas cylinders in India.
Estimated Discount To Fair Value: 38%
Everest Kanto Cylinder, trading at ₹189.79, is significantly undervalued with a fair value estimate of ₹306.08 based on discounted cash flow analysis. The company's earnings are forecast to grow substantially at 27.5% annually, outpacing the Indian market's average growth rate of 16.9%. Despite an unstable dividend track record, recent earnings reports show strong performance with Q1 revenue rising to ₹3,463.7 million from ₹2,712.6 million year-over-year and net income increasing to ₹280.5 million from ₹217.5 million.