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Choose from the 10 most undervalued stocks in 2024

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Published Date: 26 Mar 2024Updated Date: 18 Sep 20246 mins readBy MOFSL
Most Undervalued Stocks for 2024

Introduction

Have you ever been attracted to the section at a store where you can get high-quality products at discounted prices? Did you know the world of investing, too, had such a treasure trove? These comprise undervalued stocks, which are different from underperforming stocks. 

Generally, investors overlook undervalued stocks, but they are hidden gems in the stock market. You can earn significant returns by investing in them. 

What are undervalued stocks?

Undervalued stocks are equity shares trading at a market value lower than the intrinsic value. They are also known as low intrinsic value stocks. Many factors, such as socioeconomic, sector-specific, or general market slowdowns, can cause the undervaluation. 

If you want to recognise underperforming stocks in India, you need to perform a fundamental analysis instead of picking cheap stocks. This list highlights the top 10 undervalued stocks you can add to your portfolio in 2024. 

Top 10 most undervalued stocks for 2024

 

1. Coal India Ltd.

Coal India Ltd. (CIL) is a central public sector company engaged in the production and sale of coal. It is owned by the Ministry of Coal, Government of India. It is the world’s largest government-owned coal producer. As of March 4, 2024, its market capitalisation was worth Rs. 2,80,650 crore.

2. Asian Paints Ltd.

Asian Paints Ltd. is an Indian multinational paint company. It manufactures, sells and distributes paints, coatings, bath fittings, and other home decor-related products. It is the holding company of Berger International. The company’s market capitalisation was Rs. 2,71,620 crore as of March 4, 2024.

3. Oil India Ltd. 

Oil India Ltd. develops and produces natural gas, liquid petroleum gas (LPG), and crude oil. It also engages in crude oil and pipeline transportation. It is a public sector company supervised by the Ministry of Petroleum and Natural Gas. The promoters had a 56.66% share until the end of the December 2023 quarter. 

4. Hindustan Aeronautics Ltd.

Hindustan Aeronautics Ltd. is a company engaged in the design, development, manufacture, repair, and servicing of a variety of products like helicopters, aircraft, avionics, aero engines, accessories, and aerospace structures. The company’s market capitalisation as of March 4, 2024, was worth Rs. 2,15,007 crore. 

5. Power Finance Corporation Ltd.

Power Finance Corporation Ltd. is a Non-Banking Financial Company (NBFC) based in India. It offers financial assistance to the power sector through products like project term loans, lease financing, corporate loans, grants/interest-free loans, short/medium-term loans, etc. As of March 4, 2024, its Trailing Twelve Months (TTM) Price-to-Earnings (P/E) ratio for one year was 7.39. 

6. Varun Beverages Ltd. 

Varun Beverages Ltd. (VBL) is a leading player in the beverage industry. It manufactures, distributes, and sells carbonated soft and non-carbonated beverages. As of March 4, 2024, the company's market capitalisation was Rs. 1,86,346 crore. 

7. Avenue Supermarts Ltd. 

Avenue Supermarts Ltd., also known as DMart, is a retail corporation that operates a chain of supermarkets in India. It was established in 2002 by Radhakishan Damani. As of March 4, 2024, its one-year TTM P/E ratio was 102.87. 

8. ITC Ltd. 

ITC is one of India’s leading private sector companies engaged in paperboards and packaging, fast-moving consumer goods, and agribusiness and information technology businesses. As of March 4, 2024, its market capitalisation was Rs. 5,10,616 crore. 

9. Saregama India Ltd. 

The RP-Sanjiv Goenka Group of companies owns Saregama India Ltd.. It owns a music repository across film, non-film, devotional, Hindustani classical, Carnatic, and other music genres in over 25 Indian languages. As of March 4, 2024, the company’s TTM P/E for one year was 40.37. 

10. Bharat Electronics Ltd. 

Bharat Electronics Ltd. is an aerospace and defence electronics company owned by the Indian Government. It is one of the sixteen public-sector undertakings under the Ministry of Defence of India. Its market capitalisation as of March 4, 2024, was Rs. 1,53,212 crore. 

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Wrapping up

If you are interested in value investing, you can seek out the stocks mentioned above and hold them for a long duration. Keep in mind that the focus in value investing is to capitalise on the potential rise in the price of these stocks as the stock market catches up to its true value.

 

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Disclaimer: The stocks, companies, or financial instruments mentioned in this blog are for informational purposes only and should not be considered as investment recommendations. It is advised to consult with your financial advisor before making any investment decisions. Investment in securities markets are subject to market risks, read all the related documents carefully before investing. Investors are strongly encouraged to carefully read the risk disclosure documents prior to participating in market-related investments or trading activities. Due to the volatile nature of financial markets, no guarantees can be made regarding investment returns. Motilal Oswal Financial Services Ltd. does not offer any assured returns on market-linked securities. Please note that past performance of stocks or indices is not indicative of future results.
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