3 Undervalued Stocks On The Indian Exchange To Consider For Your Portfolio

The Indian market has climbed 1.8% in the last 7 days and is up 46% over the last 12 months, with earnings forecast to grow by 17% annually. In this thriving environment, identifying undervalued stocks that have strong fundamentals can be a strategic move for enhancing your portfolio.

Top 10 Undervalued Stocks Based On Cash Flows In India

Name	Current Price	Fair Value (Est)	Discount (Est)
Godfrey Phillips India (BSE:500163)	₹5405.20	₹8904.96	39.3%
Apollo Pipes (BSE:531761)	₹576.25	₹1142.33	49.6%
Venus Pipes and Tubes (NSEI:VENUSPIPES)	₹2284.55	₹4373.49	47.8%
IOL Chemicals and Pharmaceuticals (BSE:524164)	₹455.05	₹762.32	40.3%
Updater Services (NSEI:UDS)	₹362.60	₹622.51	41.8%
Prataap Snacks (NSEI:DIAMONDYD)	₹893.20	₹1509.79	40.8%
Patel Engineering (BSE:531120)	₹54.54	₹91.83	40.6%
Rajesh Exports (NSEI:RAJESHEXPO)	₹300.00	₹586.84	48.9%
Mahindra Logistics (NSEI:MAHLOG)	₹511.50	₹997.06	48.7%
Manorama Industries (BSE:541974)	₹865.20	₹1665.51	48.1%

Click here to see the full list of 33 stocks from our Undervalued Indian Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

Prataap Snacks (NSEI:DIAMONDYD)

Overview: Prataap Snacks Limited operates a snacks food business in India and internationally, with a market cap of ₹21.32 billion.

Operations: The company's revenue segment includes ₹16.52 billion from its snacks food business.

Estimated Discount To Fair Value: 40.8%

Prataap Snacks is trading at ₹893.2, significantly below its estimated fair value of ₹1509.79, making it a potentially undervalued stock based on cash flows. Despite recent earnings showing a decline in net income to ₹94.39 million from ₹134.25 million the previous year, the company's earnings are forecast to grow by 25.15% annually over the next three years, outpacing market expectations. Recent board changes include the cessation of Mr. Vineet Kumar Kapila as Independent Director on August 2, 2024.

• The growth report we've compiled suggests that Prataap Snacks' future prospects could be on the up.
• Click here to discover the nuances of Prataap Snacks with our detailed 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 ₹979.13 billion.

Operations: The company generates revenue primarily from manufacturing steel products, amounting to ₹510.56 billion.

Estimated Discount To Fair Value: 20.6%

Jindal Steel & Power, trading at ₹959.85, is considered highly undervalued with an estimated fair value of ₹1208.76. Recent earnings showed a decline in net income to ₹13,401.5 million from ₹16,869.4 million the previous year despite revenue growth to ₹136,523.3 million from ₹126,436.3 million a year ago. The company’s earnings are forecast to grow significantly over the next three years at 24.1% annually and outpace market expectations of 17%.

• Upon reviewing our latest growth report, Jindal Steel & Power's projected financial performance appears quite optimistic.
• Take a closer look at Jindal Steel & Power's balance sheet health here in our report.

Kalpataru Projects International (NSEI:KPIL)

Overview: Kalpataru Projects International Limited offers engineering, procurement, and construction (EPC) services across various sectors including power transmission and distribution, buildings and factories, water, railways, oil and gas, as well as urban infrastructure in India and internationally; it has a market cap of ₹210.90 billion.

Operations: The company's revenue segments include ₹194.92 billion from Engineering, Procurement and Construction (EPC) services and ₹2.81 billion from Development Projects.

Estimated Discount To Fair Value: 24.5%

Kalpataru Projects International, trading at ₹1298.25, is undervalued with an estimated fair value of ₹1720.07. Despite a low forecasted Return on Equity (16.1%), the company’s earnings are expected to grow significantly at 29% annually over the next three years, outpacing market expectations of 17%. Recent regulatory actions have resulted in tax and penalty demands but are unlikely to significantly impact financial performance given the company's strong defense and appeal plans.

• Our growth report here indicates Kalpataru Projects International may be poised for an improving outlook.
• Click here and access our complete balance sheet health report to understand the dynamics of Kalpataru Projects International.

Key Takeaways

• Unlock more gems! Our Undervalued Indian Stocks Based On Cash Flows screener has unearthed 30 more companies for you to explore.Click here to unveil our expertly curated list of 33 Undervalued Indian Stocks Based On Cash Flows.
• 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.
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Searching for a Fresh Perspective?

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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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