Helping You Build Wealth With Honest Research
Since 1996. Read On...

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Revealed
Our Big Prediction

This Could be One of the Exciting Opportunities for Investors




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.


5 Bluechip Stocks That Could Bounce Back in 2025

Nov 19, 2024

These bluechip stocks have fallen recently. They are likely candidates for a recovery in 2025.

Sunil Singhania's Latest Stock Pick in this Beaten Down Market is this Undervalued Smallcap

Nov 18, 2024

The recent QIP and the massive investment by Singhania are expected to bolster this textile company's capital base and support its growth initiatives.

5 Undervalued Smallcap Stocks to Watch Out in This Beaten Down Market

Nov 14, 2024

As the bears continue to cast a shadow over Dalal Street, here are five smallcap stocks trading at notable discounts.

5 Stocks Less than Book Value with Strong Growth Potential

Nov 12, 2024

Investing in stocks below book value can be appealing. Take a look at these five...

Down 40% From Its Peak, This Growth Stock Could Look Like a Bargain in a Few Years

Nov 3, 2024

Is this Indian stock's 40% drop a golden opportunity?

Looking for the Next Berkshire? Check Out these 5 Holding Companies in India

Oct 25, 2024

Despite all the advantages, holding companies carry some risks for public shareholders.

Top 5 Quantum Computing Stocks in India

Oct 3, 2024

Amid the excitement around artificial intelligence, quantum computing is quietly emerging as a transformative technology. Here are the top 5 quantum computing stocks in India.

Top 5 Undervalued Smallcap Stocks to Watch out for in 2025

Sep 26, 2024

Discover the top five undervalued small-cap stocks poised for significant growth in 2025.

Top Renewable Energy Shares in India 2024: Renewable Energy Companies to Add to Your Watchlist

Sep 14, 2024

As India accelerates its transition to sustainable energy, the renewable energy market is set for growth. Here are the top stocks to watch.

Could This Undervalued Stock Make You a Millionaire One Day?

Aug 25, 2024

This Tata group stock has delivered a 1,000% return to its shareholders in the last 3 years.

Another Elcid Investments in the Making? Track these 10 Stocks Closely

Nov 18, 2024

Here are 10 high book value stocks to watch out.

5 Low Price to Book Value Midcap Stocks to Watch Out in 2025

Nov 16, 2024

These midcaps are currently sitting beautifully between the stable but slow growing large-caps and the high return but risky small-caps.

5 High Book Value Smallcap Stocks to Watch Out in 2025

Nov 13, 2024

These smallcaps are trading at a considerable markdown relative to their actual book values. Take a look...

Top 5 High Book Value Penny Stocks to Watch Out in 2025

Nov 4, 2024

A high book value suggests that the company's assets are valued favourably compared to its stock price, which might indicate a bargain.

Swiggy IPO to Open Next Week. Is it Worth the Hype?

Nov 1, 2024

Swiggy's Rs 113 billion IPO is almost here. Here's a closer look at whether it's worth considering.

Top 4 Undervalued Midcap Stocks to Watch Out in 2025

Oct 4, 2024

We found few stocks where valuations are still relatively reasonable. Find out...

Top IT Shares in India 2025: IT Companies to Add to Your Watchlist

Sep 28, 2024

With India's software exports booming, IT stocks are poised for growth. Here are the top picks to watch out for.

Top Spacetech Shares in India 2024: Spacetech Companies to Add to Your Watchlist

Sep 22, 2024

As India strives to capture 10% of the global space economy by 2030, these spacetech stocks are set for growth. Here are the top stocks to watch.

Top 5 High Quality Microcap Stocks Trading at Cheapest Valuations

Aug 29, 2024

These microcaps are trading significantly lower from their book values and their 5-year average historical valuations.

5 Battered Defence Stocks: Hidden Gems or Value Traps?

Aug 12, 2024

Despite the defence sector's strong performance in recent times, these five stocks have faced notable corrections. Here's why.