Home>
Stocks>
Undervalued Stocks

Undervalued Stocks

Undervalued stocks refer to publicly traded companies whose current market price does not accurately reflect their intrinsic value or true worth. These value stocks are often overlooked or mispriced by the market, presenting potential investment opportunities for savvy value investors.

Get Started Live Share Market

Top Undervalued Stocks in India 2024

Name	Price	Analyst Rating	M Cap	Target Price	Alpha	1Y Return	3Y Return	5Y Return	PE	Industry PE	PB	Beta	Div Yld	Net Profit Qtr	Net Profit QoQ %	Net Profit YoY %	Net Profit 3Y Change %	Rev Qtr (in Cr)	Rev QoQ (in %)	Rev 1Y change %	Rev 3Y change %	Profit Mar Qtr	Profit Mar QoQ	Profit Mar 1Y Change%	Profit Mar 3Y Change%	Sector	M Cap	ROE	ROCE	EPS	Volume
ITC Ltd	₹464.65	BUY	LARGE CAP	540.91	-8.5%	3.34%	119.55%	95.29%	28.36	29.16	7.41	0.62	3.21%	5054.43 Cr	-2.37%	6.54%	55.06%	20581.57	12.22%	-0.08%	43.85%	29.28%	-13%	6.63%	7.79%	Consumer Defensive	588633.7	29.21%	37.4%	16.62	19481288
Asian Paints Ltd	₹2,282.35	HOLD	LARGE CAP	2661.08	-42.3%	-30.61%	-29.94%	26.79%	48.09	43.2	14.82	0.54	1.17%	693.66 Cr	-41.55%	32.47%	73.31%	8003.02	-10.51%	2.92%	63.47%	15.66%	-34.68%	28.72%	6.02%	Basic Materials	224975.05	31.29%	38.97%	57.94	1719699
Sun Pharmaceuticals Industries Ltd	₹1,808.85	BUY	LARGE CAP	2047.11	35.28%	47.82%	134.19%	325.61%	39.55	56.23	16.41	0.47	0.83%	3030.67 Cr	5.55%	12.7%	322.31%	13264.22	5.91%	10.51%	44.77%	19.89%	-0.33%	1.99%	191.7%	Basic Materials	432132.22	12.05%	12.22%	40.21	2513418
Avenue Supermarts Ltd	₹3,408.30	HOLD	LARGE CAP	4442.25	-25.58%	-11.54%	-23.74%	81.9%	84.68	-300.16	15.29	0.27	NA	659.44 Cr	-14.77%	6.61%	130.63%	14444.5	2.67%	18.56%	110.37%	4.99%	-16.98%	-10.07%	9.63%	Consumer Defensive	228778.22	15.06%	19.93%	38.97	914445
Coal India Ltd	₹382.00	BUY	LARGE CAP	524	-3.05%	10.25%	170.96%	98.71%	6.7	22.15	15.43	1.47	5.88%	6274.8 Cr	-42.66%	17.8%	194.19%	27271.3	-17.78%	2.95%	58.09%	26.26%	-30.26%	14.43%	86.09%	Basic Materials	243920.79	92.66%	69.45%	60.64	7923854
Varun Beverages Ltd	₹612.55	BUY	LARGE CAP	715.4	10.65%	21.58%	461.17%	909.65%	80.2	60.68	22.71	0.79	0.2%	628.83 Cr	-50.17%	35.59%	488.3%	4804.68	-33.24%	21.78%	112.35%	13.1%	-25.35%	11.34%	177.04%	Consumer Defensive	214199.14	28.19%	24.32%	6.472	4016697
Eicher Motors Ltd	₹4,734.50	BUY	LARGE CAP	4939.74	9.49%	20.57%	97.46%	115.18%	30.62	35.63	7.01	0.82	1.27%	1100.33 Cr	-0.1%	37.31%	197.06%	4186.38	-2.94%	14.5%	89.62%	24.2%	2.93%	19.92%	56.66%	Consumer Cyclical	130208.81	26.24%	33.01%	146.13	386086
Bharat Electronics Ltd	₹290.85	BUY	LARGE CAP	331.54	62.38%	74.92%	348.87%	805.92%	48.07	58.59	9.16	1.75	1.09%	1083.88 Cr	38.78%	34.1%	90.55%	4604.9	8.51%	14.29%	43.66%	19.45%	27.89%	17.34%	32.64%	Consumer Cyclical	222071.08	27.1%	33.71%	5.39	14964677
ABB India Ltd	₹6,921.25	HOLD	LARGE CAP	7721.13	38.47%	56.94%	234.03%	482.88%	336.17	148.94	16.66	1.22	NA	145.67 Cr	82.86%	-23.7%		2081.63	6.18%	2.13%		1.85%	72.22%	-25.29%		Industrials	162261.42	22.82%	30.39%	5.52560526008916	557249
Dr Reddys Laboratories Ltd	₹1,343.65	HOLD	LARGE CAP	1336.87	8.89%	19.33%	43.44%	127.89%	20.67	56.23	4.22	0.42	0.65%	1341.9 Cr	-3.63%	23.75%	185.81%	8016.1	4.48%	13.54%	47.06%	19.91%	-7.76%	8.99%	94.35%	Basic Materials	106420.76	19.42%	25.4%	66.882	7499087

Why should you invest in undervalued stocks?

1. Lower Risk

Compared to their overvalued counterparts, undervalued stocks inherently carry less risk. Since they are bought at a price lower than their actual value, the downside risk is minimised. This makes them an appealing option for conservative investors seeking safer investment avenues.

2. Potential for Substantial Returns

Investing in undervalued stocks provides an opportunity for significant returns. Once the market corrects its initial misjudgments, these stocks can appreciate considerably as they return to their true values, offering profitable outcomes for those who invested early.

3. Capitalising on Market Overreactions

The stock market is prone to emotional reactions, often resulting in stock mispricing. Astute investors can capitalize on this by purchasing stocks when they are unfairly devalued and waiting for the market’s inevitable correction.

4. Dividend Advantage

Often, undervalued stocks belong to established companies with stable dividend payouts. Investors can benefit from regular dividends while waiting for the stock’s price to adjust, ensuring a dual income stream through capital gains and dividends.

Check More Stocks

Name	Price	M Cap	Alpha	1Y Return	3Y Return	5Y Return	PE	Industry PE	PB	Beta	Net Profit Qtr	Net Profit QoQ %	Net Profit YoY %	Net Profit 3Y Change %	Rev Qtr (in Cr)	Rev QoQ (in %)	Rev 1Y change %	Rev 3Y change %	Profit Mar Qtr	Profit Mar QoQ	Profit Mar 1Y Change%	Profit Mar 3Y Change%	Sector	M Cap	ROE	ROCE	EPS	Volume
Adani Power Ltd	₹497.90	LARGE CAP	-13.67%	-0.65%	414.21%	733.28%	16.31	26.97	6.88	1.45	3297.52 Cr	-15.72%	94.18%	1540.09%	13338.88	-10.81%	29.86%	92.02%	41.37%	-5.51%	49.53%	754.11%	Utilities	201004.37	55.41%	30.81%	54	8079059
Tata Motors Ltd	₹724.05	LARGE CAP	-8.86%	4.97%	64.03%	322.64%	8.46	35.39	12.63	1.08	3450 Cr	-39.39%	1082.46%	-344.36%	100534	-6.32%	26.58%	75.32%	7.26%	-35.3%	834.16%	-239.39%	Consumer Cyclical	278182.61	19.5%	14.69%	82.99	17962656
Adani Wilmar Ltd	₹290.90	MID CAP	-27.44%	-15.47%	10.7%	10.7%	39.28	136.97	5.04	0.92	281.91 Cr	-9.54%	-69.17%	-73.83%	14460.45	2.06%	-11.9%	38.21%	0.33%	-11.36%	-65.01%	-81.06%	Edible Oil	38873.39	3.42%	9.6%	1.31	1010277
Infosys Ltd	₹1,922.15	LARGE CAP	13.58%	26.71%	7.43%	164.43%	29.9	41.76	7.66	0.7	6516 Cr	2.23%	8.88%	35.14%	40986	4.25%	4.7%	52.95%	17.08%	-1.94%	3.99%	-11.64%	Technology	821791.95	36.58%	45.07%	63.37	11056720
Tata Steel Ltd	₹140.68	LARGE CAP	-3.1%	9.36%	29.64%	209.95%	60.96	24.73	1.43	1.39	758.84 Cr	-17.39%	-160.8%	-159.95%	53489.73	-1.7%	-5.83%	46.63%	-2.14%	-15.96%	-164.56%	-140.88%	Industrials	180337.03	7.79%	13.67%	-3.94	46503449
Yes Bank Ltd	₹19.83	MID CAP	-14.79%	-3.74%	56.62%	-58.99%	34.51	15.85	1.62	1.22	566.59 Cr	9.8%	74.66%	-136.84%	9225.45	2.55%	23.98%	42.4%	3.9%	7.08%	40.88%	-125.87%	Financial Services	64643.47	2.45%	NA	0.45	76096639
Zomato Ltd	₹282.10	LARGE CAP	114.61%	126.54%	119.22%	128.97%	339.41		6.95	0.69	176 Cr	-30.43%	-136.15%	-142.99%	4799	14.1%	71.13%	507.58%	2.9%	-39.03%	-121.12%	-107.08%	Technology	281693.74	5.15%	5.18%	0.4	271472990
ITC Ltd	₹464.65	LARGE CAP	-8.5%	3.34%	119.55%	95.29%	28.36	29.16	7.41	0.62	5054.43 Cr	-2.37%	6.54%	55.06%	20581.57	12.22%	-0.08%	43.85%	29.28%	-13%	6.63%	7.79%	Consumer Defensive	588633.7	29.21%	37.4%	16.62	19481288
Wipro Ltd	₹305.20	LARGE CAP	29.79%	44.12%	-9.45%	146.4%	27.82	41.76	4.34	1.05	3226.6 Cr	6.26%	-2.24%	2.25%	22301.6	1.54%	-0.8%	44.93%	12.38%	4.65%	-1.45%	-29.45%	Technology	327189.89	15.13%	19.03%	10.635	22214824
HDFC Bank Ltd	₹1,771.50	LARGE CAP	-4.61%	6.33%	24.39%	37.71%	19.71	15.85	2.5	0.97	17825.91 Cr	8.2%	39.27%	101.24%	121456.74	3.81%	99.35%	161.73%	15.7%	4.23%	-30.13%	-23.11%	Financial Services	1384256.77	16.88%	NA	86.15	12846174

Frequently Asked Questions

There are several methods to identify undervalued stocks, including analysing financial ratios like price-to-earnings (P/E), price-to-book (P/B), and price-to-cash-flow (P/CF) ratios, which can indicate if a stock is undervalued compared to its peers or historical averages. Qualitative factors like competitive advantages, management quality, and growth potential are also considered.

The primary benefit of investing in undervalued stocks is the potential for higher returns when the market eventually recognises the stock's true value, leading to price appreciation.

Undervalued stocks may remain undervalued for an extended period, leading to opportunity costs. Additionally, there is a risk that the stock is undervalued due to underlying fundamental issues with the company, which may lead to further price declines.