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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.


Why Captain Pipes Share Price is Falling

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The company recently started work on its greenfield expansion in Ahmedabad, expected to complete by December 2024.

Is Exide Industries Undervalued?

Apr 9, 2024

Exide Industries: Intrinsic Value vs Market Price - A Deep Dive.

Why Small Cap Stocks are Falling

Mar 13, 2024

The promise of chaos in the small cap space is playing out nicely. The BSE smallcap index has fallen over 5% in less than a week.

Why Whirlpool of India Share Price is Falling

Feb 20, 2024

For Whirlpool of India, there's a strong chance that a turnaround is not far away. Here's why the stock deserves a place on your watchlist.

Top 2 PSU Banks with Reasonable Valuations

Jan 26, 2024

The ability for banks like Union Bank of India and Canara Bank to manage their NIMs would be key, given that the rate easing cycle is still 6-9 months away.

Why HUDCO Share Price is Rising

Dec 14, 2023

FIIs have increased stake in HUDCO for the past three quarters and the current rally could just as well be because of FIIs buying more stake in it.

5 Most Undervalued Midcap Stocks to Watch Out as 2024 Begins

Dec 1, 2023

These mid-cap stocks, trading at a discount to their historical averages, could bounce back in 2024.

Top 5 Undervalued Midcap Stocks to Watch Out for in 2024

Oct 30, 2023

Good quality mid-cap stocks are seldom available at attractive valuations. Take a look at these five and be the judge.

5 Beaten Down Stocks with Strong Fundamentals, Poised to Make a Comeback in 2024

Oct 14, 2023

These five companies have the potential to grow in 2024. Take a look...

The 5 Most Undervalued Specialty Chemical Stocks Right Now

Sep 4, 2023

These undervalued gems can offer significant potential for capital appreciation.

Top 5 Undervalued Smallcap Stocks to Watch Out for in FY25

Apr 11, 2024

Here are five stocks that display promising potential for growth and value appreciation in the upcoming year.

Exide Stock Price: Undervalued or Overvalued?

Apr 9, 2024

Is Exide still undervalued after the price surge?

Top 5 Quality Stocks Trading Near 52-Week Lows. Should You Buy?

Mar 3, 2024

While a stock trading near its 52-week low can be tempting, it's important to consider other factors before investing.

This 'Rooftop Solar' Penny Stock is Flying. Should We Turn Bullish?

Feb 12, 2024

This rooftop solar stock is already up 60% in the last few weeks. Is there more steam left?

Top 3 Breakout Stocks to Watch Out (One of Them Looks Undervalued)

Jan 19, 2024

These three stocks recently hit their all-time high. Data suggests there's still a lot of steam left in the rally.

5 Most Undervalued Smallcap Stocks to Watch Out as 2024 Begins

Dec 5, 2023

These smallcap stocks are trading at a discount to their historical average and have the potential to bounce back in 2024.

Top 5 Stocks with Over 7% Dividend Yield and Cheap Valuations

Nov 21, 2023

These five stocks are a perfect blend of income and value for investors looking to generate income and also capitalise on undervalued opportunities.

Top 5 Undervalued Smallcap Stocks to Watch Out for in 2024

Oct 25, 2023

Smallcaps are impacted more than their large counterparts during market drawdowns. But the silver lining is that during the rebound, they bounce back stronger.

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...