Undervalued Indian Stocks With Potential Upside In August 2024

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Over the last 7 days, the Indian market has remained flat, yet it is up 45% over the past year with earnings forecasted to grow by 17% annually. In this context, identifying undervalued stocks with strong fundamentals and growth potential can be a prudent strategy for investors looking to capitalize on future gains.

Top 10 Undervalued Stocks Based On Cash Flows In India

Name

Current Price

Fair Value (Est)

Discount (Est)

Shyam Metalics and Energy (NSEI:SHYAMMETL)

₹726.90

₹1126.63

35.5%

HEG (NSEI:HEG)

₹2151.30

₹3905.93

44.9%

S Chand (NSEI:SCHAND)

₹228.23

₹356.75

36%

Macrotech Developers (NSEI:LODHA)

₹1231.15

₹1947.34

36.8%

Updater Services (NSEI:UDS)

₹316.35

₹628.92

49.7%

Vedanta (NSEI:VEDL)

₹434.20

₹838.79

48.2%

Rajesh Exports (NSEI:RAJESHEXPO)

₹304.70

₹595.10

48.8%

Mahindra Logistics (NSEI:MAHLOG)

₹514.55

₹995.24

48.3%

Piramal Pharma (NSEI:PPLPHARMA)

₹174.27

₹289.56

39.8%

Strides Pharma Science (NSEI:STAR)

₹1080.80

₹2032.10

46.8%

Click here to see the full list of 28 stocks from our Undervalued Indian Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

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 ₹64.69 billion.

Operations: NIIT Managed Training Services generates revenue from providing managed training services across North America, Europe, Asia, and Oceania.

Estimated Discount To Fair Value: 32.2%

NIIT Learning Systems is trading at ₹476.7, significantly below its fair value estimate of ₹703.32, indicating it may be undervalued based on discounted cash flow analysis. Despite recent substantial insider selling, the company shows strong fundamentals with earnings growing 38% annually over the past five years and forecasted to grow 18.26% per year. Revenue growth (13.9%) is expected to outpace the Indian market (9.8%), enhancing its attractiveness as an undervalued stock based on cash flows in India.

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

Tarsons Products

Overview: Tarsons Products Limited manufactures and trades plastic laboratory products and scientific instruments both in India and internationally, with a market cap of ₹27.12 billion.

Operations: Tarsons Products Limited generates ₹2.96 billion in revenue from its plastic laboratory products and certain scientific instruments.