3 Indian Stocks With Estimated Undervaluation In September 2024

Over the last 7 days, the Indian market has remained flat, yet it has surged by 44% over the past year with earnings forecasted to grow by 17% annually. In this context, identifying undervalued stocks can provide significant opportunities for investors looking to capitalize on potential growth and value in a thriving market.

Top 10 Undervalued Stocks Based On Cash Flows In India

Name	Current Price	Fair Value (Est)	Discount (Est)
Everest Kanto Cylinder (NSEI:EKC)	₹182.75	₹306.03	40.3%
Krsnaa Diagnostics (NSEI:KRSNAA)	₹726.60	₹1165.33	37.6%
Prataap Snacks (NSEI:DIAMONDYD)	₹837.75	₹1509.79	44.5%
Apollo Pipes (BSE:531761)	₹653.55	₹1148.09	43.1%
Venus Pipes and Tubes (NSEI:VENUSPIPES)	₹2368.95	₹4384.37	46%
IOL Chemicals and Pharmaceuticals (BSE:524164)	₹436.75	₹762.32	42.7%
Updater Services (NSEI:UDS)	₹366.50	₹619.71	40.9%
Patel Engineering (BSE:531120)	₹58.83	₹93.30	36.9%
Artemis Medicare Services (NSEI:ARTEMISMED)	₹270.80	₹445.15	39.2%
Rajesh Exports (NSEI:RAJESHEXPO)	₹293.65	₹586.87	50%

Click here to see the full list of 30 stocks from our Undervalued Indian Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

Kalpataru Projects International (NSEI:KPIL)

Overview: Kalpataru Projects International Limited offers engineering, procurement, and construction (EPC) services across sectors such as power transmission and distribution, buildings and factories, water, railways, oil and gas, and urban infrastructure in India and internationally with a market cap of ₹226.63 billion.

Operations: Kalpataru Projects International Limited generates revenue primarily from its Engineering, Procurement, and Construction (EPC) segment, amounting to ₹194.92 billion, with additional contributions from Development Projects totaling ₹2.81 billion.

Estimated Discount To Fair Value: 20.1%

Kalpataru Projects International (KPIL) is trading at ₹1395.1, which is 20.1% below its estimated fair value of ₹1747.12, indicating potential undervaluation based on discounted cash flow analysis. Earnings are forecast to grow significantly at 29% annually, outpacing the Indian market's average growth rate of 16.9%. However, recent regulatory issues involving GST and other tax penalties may impact financial stability in the short term but are not expected to have a significant long-term effect on KPIL's valuation or operations.

• Our growth report here indicates Kalpataru Projects International may be poised for an improving outlook.
• Take a closer look at Kalpataru Projects International's balance sheet health here in our report.

NIIT Learning Systems (NSEI:NIITMTS)

Overview: NIIT Learning Systems Limited provides managed training services across India, America, Europe, and internationally, with a market cap of ₹69.57 billion.

Operations: Revenue from Education & Training Services for NIIT Learning Systems Limited is ₹15.78 billion.

Estimated Discount To Fair Value: 26.9%

NIIT Learning Systems, trading at ₹512.45, is significantly undervalued with an estimated fair value of ₹700.74. Despite a forecasted annual earnings growth of 18.26%, which outpaces the Indian market's 16.9%, the company has experienced significant insider selling over the past three months and maintains an unstable dividend track record. However, its recent strategic partnership with Century 21 Canada Limited Partnership could bolster revenue growth and enhance technological proficiency in real estate training through its Xsel platform.

• Insights from our recent growth report point to a promising forecast for NIIT Learning Systems' business outlook.
• Click here and access our complete balance sheet health report to understand the dynamics of NIIT Learning Systems.

Piramal Pharma (NSEI:PPLPHARMA)

Overview: Piramal Pharma Limited is a pharmaceutical company with operations in North America, Europe, Japan, India, and internationally, and has a market cap of ₹256.00 billion.

Operations: The company's revenue from its pharmaceutical segment is ₹83.73 billion.

Estimated Discount To Fair Value: 33.3%

Piramal Pharma, trading at ₹193.1, is undervalued with an estimated fair value of ₹289.56. The company recently became profitable and forecasts suggest earnings will grow significantly over the next three years, outpacing the Indian market. However, interest payments are not well covered by earnings and recent regulatory penalties may impact financials slightly. Despite these concerns, its revenue growth is expected to be faster than the Indian market's average rate.

• Our earnings growth report unveils the potential for significant increases in Piramal Pharma's future results.
• Dive into the specifics of Piramal Pharma here with our thorough financial health report.

Where To Now?

• Gain an insight into the universe of 30 Undervalued Indian Stocks Based On Cash Flows by clicking here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Want To Explore Some Alternatives?

• 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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