3 Indian Exchange Stocks That Might Be Undervalued By Up To 48.6%

The Indian market has shown impressive resilience, with the Information Technology sector gaining 4.0% while the overall market remained flat last week and up 44% over the past year. In this thriving environment where earnings are forecast to grow by 17% annually, identifying undervalued stocks can offer significant opportunities for investors seeking value amidst robust growth projections.

Top 10 Undervalued Stocks Based On Cash Flows In India

Name	Current Price	Fair Value (Est)	Discount (Est)
Godfrey Phillips India (BSE:500163)	₹4533.25	₹8904.96	49.1%
Everest Kanto Cylinder (NSEI:EKC)	₹169.18	₹305.83	44.7%
Krsnaa Diagnostics (NSEI:KRSNAA)	₹658.20	₹1165.33	43.5%
Yatharth Hospital & Trauma Care Services (NSEI:YATHARTH)	₹459.80	₹792.08	42%
IOL Chemicals and Pharmaceuticals (BSE:524164)	₹391.70	₹762.32	48.6%
Updater Services (NSEI:UDS)	₹320.00	₹622.14	48.6%
RITES (NSEI:RITES)	₹655.45	₹1044.17	37.2%
Prataap Snacks (NSEI:DIAMONDYD)	₹894.40	₹1509.79	40.8%
Patel Engineering (BSE:531120)	₹54.69	₹90.82	39.8%
Tarsons Products (NSEI:TARSONS)	₹423.15	₹700.49	39.6%

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

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

Blue Jet Healthcare (NSEI:BLUEJET)

Overview: Blue Jet Healthcare Limited manufactures and sells pharmaceutical intermediates and active pharmaceutical ingredients (APIs) for use in pharmaceutical and healthcare products, with a market cap of ₹79.90 billion.

Operations: The company's revenue segment includes the manufacturing of pharmaceutical and healthcare products, generating ₹6.95 billion.

Estimated Discount To Fair Value: 15.6%

Blue Jet Healthcare is trading at ₹460.6, 15.6% below its estimated fair value of ₹545.78, indicating potential undervaluation based on cash flows. Despite recent earnings declines—with Q1 2024 net income at INR 377.77 million compared to INR 441.21 million a year ago—the company’s revenue and earnings are forecasted to grow significantly faster than the Indian market, at rates of 25.1% and 25.6% per year respectively, driven by strategic expansions in production capacity.

• Our comprehensive growth report raises the possibility that Blue Jet Healthcare is poised for substantial financial growth.
• Click to explore a detailed breakdown of our findings in Blue Jet Healthcare's balance sheet health report.

Updater Services (NSEI:UDS)

Overview: Updater Services Limited operates an integrated business services platform in India and has a market cap of ₹21.42 billion.

Operations: Updater Services Limited generates revenue primarily from two segments: Business Support Services, contributing ₹8.67 billion, and Integrated Facility Management Services, which brings in ₹16.99 billion.

Estimated Discount To Fair Value: 48.6%

Updater Services Limited is trading at ₹320, 48.6% below its estimated fair value of ₹622.14, suggesting significant undervaluation based on cash flows. Despite recent regulatory challenges, the company’s earnings are forecasted to grow 36.1% annually over the next three years, outpacing the Indian market's expected growth of 16.9%. Recent Q1 results show a strong performance with net income rising to INR 253.62 million from INR 129.06 million a year ago.

• Our earnings growth report unveils the potential for significant increases in Updater Services' future results.
• Navigate through the intricacies of Updater Services with our comprehensive financial health report here.

Yatharth Hospital & Trauma Care Services (NSEI:YATHARTH)

Overview: Yatharth Hospital & Trauma Care Services Limited owns and operates super-specialty hospitals in Delhi and Madhya Pradesh, with a market cap of ₹39.47 billion.

Operations: The company's revenue primarily comes from hospital services, amounting to ₹7.46 billion.

Estimated Discount To Fair Value: 42%

Yatharth Hospital & Trauma Care Services is trading at ₹459.8, significantly below its estimated fair value of ₹792.08, indicating substantial undervaluation based on cash flows. Recent Q1 earnings show strong performance with net income rising to INR 303.84 million from INR 190.36 million a year ago. Forecasts suggest annual revenue growth of 21.7% and earnings growth of 23%, outpacing the Indian market's expected growth rates, making it an attractive option for investors seeking undervalued stocks based on cash flows in India.

• The analysis detailed in our Yatharth Hospital & Trauma Care Services growth report hints at robust future financial performance.
• Delve into the full analysis health report here for a deeper understanding of Yatharth Hospital & Trauma Care Services.

Seize The Opportunity

• 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.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Interested In Other Possibilities?

• 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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