3 Indian Stocks Estimated To Be Trading Below Intrinsic Value By Over 16.3%

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%

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

Let's dive into some prime choices out of the screener.

CMS Info Systems (NSEI:CMSINFO)

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.

• Insights from our recent growth report point to a promising forecast for CMS Info Systems' business outlook.
• Take a closer look at CMS Info Systems' balance sheet health here in our report.

Everest Kanto Cylinder (NSEI:EKC)

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.

• The analysis detailed in our Everest Kanto Cylinder growth report hints at robust future financial performance.
• Click here and access our complete balance sheet health report to understand the dynamics of Everest Kanto Cylinder.

Tarsons Products (NSEI:TARSONS)

Overview: Tarsons Products Limited manufactures and trades in scientific plastic labware products both in India and internationally, with a market cap of ₹24.43 billion.

Operations: The company's revenue primarily comes from plastic laboratory products and certain scientific instruments, amounting to ₹3.19 billion.

Estimated Discount To Fair Value: 35.3%

Tarsons Products, trading at ₹454.55, is significantly undervalued with a fair value estimate of ₹702.67 based on discounted cash flow analysis. Despite a high level of debt and lower profit margins compared to last year, the company’s earnings are forecast to grow 27.45% annually over the next three years, outpacing the Indian market's average growth rate of 16.9%. Recent regulatory issues have minimal impact on operations or activities.

• Upon reviewing our latest growth report, Tarsons Products' projected financial performance appears quite optimistic.
• Click to explore a detailed breakdown of our findings in Tarsons Products' balance sheet health report.

Taking Advantage

• Gain an insight into the universe of 30 Undervalued Indian Stocks Based On Cash Flows by clicking here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Curious About Other Options?

• 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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