Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Investment in securities market are subject to market risks. Read all the related documents carefully before investing

2 Stocks to BUY
As Nifty50 Heads Towards 40,000


Get Full Details


**Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
**By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.

AD

Undervalued Stocks in India

A stock is undervalued when it is trading at a price below its true value, also known as intrinsic value. The intrinsic value is the true value of a stock, its actual worth, irrespective of what investors and speculators are willing to pay for it.

Sometimes, due to external factors (like negative market sentiments), the price of a stock deviates from its intrinsic value (true value). It can trade at a discount to its peers or the industry average. Usually, this is a good time to buy the stock, as in some cases, the pessimism is overblown, and there you might make good returns.

However, other times this pessimism is warranted, and it could be due to various reasons. Maybe, the company has succumbed to tough competition or is a victim of rapid technological change or is run by an incompetent and unethical set of managers.

Whatever the reason might be, such companies that fail to perform despite their inexpensive valuations eventually become value traps.

The key to sidestep this is by doing your research. Look for fundamentally strong companies available at a discount to their true values.

There are several methods to find the true value of the stock. Valuations tools like the commonly used Price to Earnings and Price to Book can help you find if the stock is trading at a discount to its historical values or peers.

You can either do this or find the most undervalued stocks on Equitymaster's powerful stock screener.


Top 5 Sugar Stocks to Watch as Supply Crunch Drives Prices Higher

Sep 9, 2023

These five sugar stocks could benefit the most if there's a supply crunch. Take a look...

Top 5 Beaten-Down Dividend Stocks That Look Undervalued

Aug 24, 2023

These beaten down dividend paymasters could potentially stage a comeback. Here's why...

Is ONGC Share Price Poised for a Comeback?

Aug 13, 2023

What's driving ONGC's recent outperformance?

Stocks with Consistently Rising Promoter Holding? Here's a Watchlist for You to Track...

Jul 3, 2023

If promoters are willing to part with their personal money to buy shares in the open market, there's a good possibility they believe the stock is undervalued.

5 Midcap Stocks Near 52-Week Highs That Still Look Undervalued

Jun 12, 2023

These mid-cap stocks are in a sweet spot. Continue reading to know more about them...

5 Stocks Near 52-Week Highs That Still Look Undervalued

Jun 1, 2023

Despite scaling a new peak, these stocks remain undervalued and are in a sweet spot. Continue reading to know more about them...

Undervalued Gems: 3 Penny Stocks Hitting 52-Week Lows. Time to Take a Look?

May 18, 2023

Investors must keep a watchful eye on stocks trading at their 52-week lows. If chosen carefully, they could potentially generate faster returns.

Insider Buying Alert: Examining Promoter Holding Changes in these 6 Stocks

May 13, 2023

While promoter holding is an important parameter, it should not be the sole reason for buying a stock.

Undervalued Gems: 5 Smallcap Stocks Hitting 52-Week Lows. Time to Take a Look?

May 4, 2023

Despite the positive sentiment in the market, these five smallcaps are trading at their yearly low. Find out why.

Value Stocks at Fair Price: Avoid Overpaying Ever Again with this Simple Method!

Apr 14, 2023

Use this method to value stocks at their fair price and avoid overpaying for a stock ever again!

The 5 Most Undervalued Specialty Chemical Stocks Right Now

Sep 4, 2023

These undervalued gems can offer significant potential for capital appreciation.

Top 5 IT Stocks that are still Undervalued. Worth a Look?

Aug 21, 2023

These beaten down IT stocks could potentially stage a comeback. Here's why...

5 Fundamentally Strong Smallcap Stocks Trading Near 52-Week Lows. Do they Have the Potential to Rebound?

Aug 3, 2023

Despite the booming markets, these five stocks are trading at 52-week lows.

Is Rerating on The Cards For This Undervalued NBFC?

Jun 27, 2023

Find out why I believe this Housing Finance Stock merits attention.

5 Smallcap Stocks Near 52-Week Highs That Still Look Undervalued

Jun 8, 2023

Despite scaling a new peak, these small-cap stocks remain undervalued and are in a sweet spot. Continue reading to know more about them...

5 Undervalued Textile Stocks to Add to Your Watchlist

May 20, 2023

These textile stocks are trading at mouth-watering valuations. But is the risk reward set up in investors' favor?

Specialty Chemical Stock Down 40% in a Year. Is it Worth a Look?

May 17, 2023

Read this before you go bottom fishing in this specialty chemical stock.

Undervalued Gems: 5 Midcap Stocks Hitting 52-Week Lows. Time to Take a Look?

May 12, 2023

Here's a list of 5 midcap stocks available at attractive valuations.

4 Stocks that Could be a Risky Investment

Apr 15, 2023

While investing in stocks always comes with risks, these stocks pose unique challenges.

Why You Must Ignore these 5 Stocks Trading Below their 5-Year Average PE Ratio

Apr 12, 2023

These 5 stocks stocks trading at a discount could potentially harm you.