In This Article:
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% |
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.
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.