3 Undervalued Stocks On The Indian Exchange Trading Up To 34.8% Below Intrinsic Value

The Indian market has shown robust performance, rising 1.1% in the last 7 days and climbing 41% over the past year, with earnings forecasted to grow by 17% annually. In this environment, identifying undervalued stocks can be key to maximizing returns, as these stocks trade below their intrinsic value and offer potential for significant gains.

Top 10 Undervalued Stocks Based On Cash Flows In India

Name	Current Price	Fair Value (Est)	Discount (Est)
Apollo Pipes (BSE:531761)	₹618.25	₹1139.71	45.8%
Prataap Snacks (NSEI:DIAMONDYD)	₹823.95	₹1509.79	45.4%
Titagarh Rail Systems (NSEI:TITAGARH)	₹1273.55	₹2164.35	41.2%
Venus Pipes and Tubes (NSEI:VENUSPIPES)	₹2217.80	₹4388.72	49.5%
RITES (NSEI:RITES)	₹680.25	₹1034.74	34.3%
Patel Engineering (BSE:531120)	₹58.77	₹93.62	37.2%
IOL Chemicals and Pharmaceuticals (BSE:524164)	₹503.75	₹762.32	33.9%
Artemis Medicare Services (NSEI:ARTEMISMED)	₹289.75	₹445.15	34.9%
IRB Infrastructure Developers (NSEI:IRB)	₹60.74	₹93.19	34.8%
Orchid Pharma (NSEI:ORCHPHARMA)	₹1403.10	₹2142.32	34.5%

Click here to see the full list of 27 stocks from our Undervalued Indian Stocks Based On Cash Flows screener.

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

IRB Infrastructure Developers (NSEI:IRB)

Overview: IRB Infrastructure Developers Limited operates in the infrastructure development sector in India, with a market cap of ₹3.67 billion.

Operations: The company's revenue segments include ₹51.92 billion from Construction and ₹24.16 billion from BOT/TOT Projects.

Estimated Discount To Fair Value: 34.8%

IRB Infrastructure Developers is trading at ₹60.74, significantly below its estimated fair value of ₹93.19, suggesting it is undervalued based on discounted cash flows. Despite a low forecasted return on equity (8.3%), earnings are expected to grow substantially at 32% per year, outpacing the Indian market's 17.1%. However, interest payments are not well covered by earnings, indicating some financial risk. Recent earnings show modest growth in revenue and net income compared to last year.

• Insights from our recent growth report point to a promising forecast for IRB Infrastructure Developers' business outlook.
• Dive into the specifics of IRB Infrastructure Developers here with our thorough financial health report.

Jindal Steel & Power (NSEI:JINDALSTEL)

Overview: Jindal Steel & Power Limited operates in the steel, mining, and infrastructure sectors both in India and internationally, with a market cap of ₹1.05 trillion.

Operations: The company's revenue segments include manufacturing steel products, which generated ₹510.56 billion.

Estimated Discount To Fair Value: 16.3%

Jindal Steel & Power, trading at ₹1024.85, is undervalued based on discounted cash flows with an estimated fair value of ₹1223.95. Earnings are forecast to grow significantly at 24% per year, outpacing the Indian market's 17.1%. Recent earnings show a modest decline in net income despite increased revenue and production. A recent MOU with Jindal Renewables to integrate green hydrogen into steel production underscores a strong commitment to decarbonisation and sustainable growth.

• The growth report we've compiled suggests that Jindal Steel & Power's future prospects could be on the up.
• Navigate through the intricacies of Jindal Steel & Power with our comprehensive financial health report here.

Quess (NSEI:QUESS)

Overview: Quess Corp Limited is a business services provider operating in India, South East Asia, the Middle East, and North America with a market cap of ₹124.99 billion.

Operations: The company's revenue segments include Workforce Management at ₹138.44 billion, Operating Asset Management at ₹28.43 billion, Global Technology Solutions (excluding Product Led Business) at ₹23.87 billion, and Product Led Business at ₹4.29 billion.

Estimated Discount To Fair Value: 21.5%

Quess Corp, trading at ₹841, is significantly undervalued with an estimated fair value of ₹1071.68. Earnings are forecast to grow at 22.8% annually, surpassing the Indian market's 17.1%. Recent earnings for Q1 2025 showed a notable increase in net income to ₹1.04 billion from ₹478 million a year ago. Despite a low forecasted Return on Equity of 19.5%, Quess's strong cash flows and profit growth potential make it compelling for value investors.

• Our expertly prepared growth report on Quess implies its future financial outlook may be stronger than recent results.
• Click here to discover the nuances of Quess with our detailed financial health report.

Where To Now?

• Navigate through the entire inventory of 27 Undervalued Indian Stocks Based On Cash Flows here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
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Looking For Alternative Opportunities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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