Discovering Jindal Steel & Power And 2 More Stocks That May Be Undervalued On The Indian Exchange

The US Federal Reserve's unexpected 50 bps rate cut and its shift in policy are boosting the emerging markets. Despite India's lagging performance compared to its Asian counterparts, domestic benchmarks have breached new highs, driven by liquidity from Foreign Institutional Investors (FIIs) and a focus on large-cap stocks. In this context, identifying undervalued stocks becomes crucial for investors looking to capitalize on market inefficiencies. This article explores Jindal Steel & Power and two other potentially undervalued stocks that may offer promising opportunities on the Indian exchange.

Top 10 Undervalued Stocks Based On Cash Flows In India

Name	Current Price	Fair Value (Est)	Discount (Est)
Everest Kanto Cylinder (NSEI:EKC)	₹194.55	₹306.24	36.5%
Apollo Pipes (BSE:531761)	₹586.20	₹1136.59	48.4%
Titagarh Rail Systems (NSEI:TITAGARH)	₹1226.85	₹2153.23	43%
Venus Pipes and Tubes (NSEI:VENUSPIPES)	₹2218.80	₹4291.92	48.3%
IOL Chemicals and Pharmaceuticals (BSE:524164)	₹476.05	₹762.32	37.6%
Vedanta (NSEI:VEDL)	₹513.00	₹933.88	45.1%
Patel Engineering (BSE:531120)	₹58.02	₹92.98	37.6%
Tarsons Products (NSEI:TARSONS)	₹438.95	₹708.01	38%
Manorama Industries (BSE:541974)	₹840.90	₹1665.51	49.5%
Strides Pharma Science (NSEI:STAR)	₹1409.65	₹2704.30	47.9%

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

Let's uncover some gems from our specialized screener.

Jindal Steel & Power (NSEI:JINDALSTEL)

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

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

Estimated Discount To Fair Value: 14.3%

Jindal Steel & Power appears undervalued based on cash flows, trading at ₹1028.05, below its estimated fair value of ₹1199.83. Recent developments include a landmark MOU with Jindal Renewables to integrate green hydrogen into its operations, significantly reducing carbon emissions and coal dependency by 50% over the next 2-3 years. Despite a dip in net income for Q1 2024, the company's earnings are forecasted to grow annually by 24%, outpacing the Indian market's growth rate of 17.2%.

• Our earnings growth report unveils the potential for significant increases in Jindal Steel & Power's future results.
• Click here to discover the nuances of Jindal Steel & Power with our detailed financial health report.

Kalpataru Projects International (NSEI:KPIL)

Overview: Kalpataru Projects International Limited offers engineering, procurement, and construction services across various sectors including power transmission and distribution, buildings and factories, water, railways, oil and gas, and urban infrastructure both in India and internationally with a market cap of ₹228.65 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: 19.4%

Kalpataru Projects International (₹1407.55) is trading 19.4% below its estimated fair value of ₹1747.28, indicating it may be undervalued based on cash flows. Earnings have grown modestly at 0.6% annually over the past five years but are forecasted to grow significantly by 29% per year, outpacing the Indian market's expected growth of 17.2%. Recent achievements include securing new orders worth ₹27,740 million in various sectors despite ongoing regulatory challenges related to GST compliance and penalties.

• Our growth report here indicates Kalpataru Projects International may be poised for an improving outlook.
• Navigate through the intricacies of Kalpataru Projects International with our comprehensive financial health report here.

Vedanta (NSEI:VEDL)

Overview: Vedanta Limited, a diversified natural resources company, engages in the exploration, extraction, and processing of minerals and oil and gas across India, Europe, China, the United States, Mexico, and other international markets with a market cap of ₹2.00 trillion.

Operations: Vedanta Limited generates revenue from various segments including Power (₹62.54 billion), Copper (₹197.31 billion), Iron Ore (₹83.51 billion), Aluminium (₹499.81 billion), Oil and Gas (₹179.05 billion), and Zinc - International (₹32.06 billion).

Estimated Discount To Fair Value: 45.1%

Vedanta (₹513) is trading at 45.1% below its estimated fair value of ₹933.88, highlighting potential undervaluation based on cash flows. Despite a high level of debt and recent shareholder dilution, earnings are forecast to grow significantly at 41.8% annually, outpacing the Indian market's expected growth rate of 17.2%. The company recently announced a demerger plan to simplify its corporate structure and provide direct investment opportunities in individual business segments like aluminium and oil & gas.

• The growth report we've compiled suggests that Vedanta's future prospects could be on the up.
• Unlock comprehensive insights into our analysis of Vedanta stock in this financial health report.

Make It Happen

• Discover the full array of 27 Undervalued Indian Stocks Based On Cash Flows right here.
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Ready For A Different Approach?

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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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