10+ Best Fundamentally Strong but Undervalued Stocks

The potential of getting multi-bagger returns from investing is only possible by investing in the best fundamentally strong but undervalued stocks. The term looks slightly complex as it is hard to find these types of stocks and it also takes a long time for complete research.

If you are also looking for undervalued stocks, here you’ll find a lot of stocks of different sectors and industries to increase the chance of getting good returns and reduce the risk. In these stocks, risks are also high as these are usually small companies and their share price can be affected badly due to any news or event.

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What is an Undervalued Stock?

An undervalued stock is trading at a much lower level than its actual expected stock price should be based on its earnings, company growth, sector growth, etc.

For example, Suppose there is a stock named “ABCD” and currently it is trading at Rs. 25. But the company’s earnings, business model, and fundamentals suggest the stock price should be more than 25 like 50, 60, 75, etc. based on some metrics.

These types of stocks are usually known as multi-bagger stocks as they have the potential to give multi-bagger returns in the long term. On the other side, there is also a slightly high risk.

How to Find Undervalued stocks?

You need to apply various filters to find undervalued stocks like PE Ratio, PB Ratio, growth potential, debt, debt to equity ratio, financial, and many more.

Below are some major criteria to find undervalued stocks and different people use different criteria as per their knowledge, understanding, and need.

DEBT: Undervalued stocks are usually small companies and in these companies, the debt is usually high. Filter the companies that have low debt-to-equity ratios. So, consider the stocks with low DEBT (less than 0.5).

PE Ratio: Low PE stocks are usually undervalued but you may also find dozens of undervalued stocks with high PE Ratio. It is because of the expected future growth of the company.

If the stock seems undervalued but its PE Ratio is very high then keep tracking the stock. Invest when you get it at a discounted price.

Profitable: To reduce risk in investing you can consider investing in undervalued stocks or companies that are profitable and the profits are consistently increasing.

Future Growth: New sectors and industries have given good returns due to their massive demands. Currently, in the renewable sector, the government is working a lot. So, try to find these types of sectors or industries for good returns.

Best Fundamentally Strong but Undervalued Stocks

Here we will share more than 25 best fundamentally strong but undervalued stocks. We also shared some information about each stock like the company’s financials, fundamentals, business model, etc. In the list, there are stocks from many sectors and industries to make the portfolio diversified.

In the last 1 to 2 years, most of the good stocks including undervalued stocks are trading near their all-time highs because of the bullish market. You can plan your investment as per your research and knowledge as investing near an all-time high is not recommended.

Note: Undervalued stocks give massive returns in the long term and sometimes a return of more than 100% can be expected smoothly. The problem is not all the stock going to give this type of return so, you before investing you should do your research as well.

1. Angel One

Angel One Ltd is a broking firm company. This is a well-known company among traders and investors. The company provides many services like trading facility, investing facility, and investment advisory.

Angel One is a profitable company and its earnings are consistently increasing. It generates revenue from its operations, such as brokerage, investment advisory services, etc.

Company Analysis

Below you’ll find Angel One Limited’s company information like financials, fundamentals, and shareholding patterns. This information plays an important role in identifying good companies for investing.

Key Insights

• FIIs are decreasing their holdings.
• Angel One is a profitable company.
• Angel One Limited company with low debt.
• Recent quarter earnings are showing strength.
• Angel One earnings are increasing consistently.
• The profit margins of the company are not stable.
• Angel One’s profit margins are above the industry median.
• Over the years, the promoters are also decreasing holdings in the Angel One.

2. Coal India Ltd

Coal India Ltd is the world’s largest player in the coal industry. The company was founded in November 1975. The company majority is involved in the business of coal mining, production, and processing.

As of 22 August 2024, the Coal India Ltd market cap is Rs. 3,26,594 Crore and it is trading at Rs. 530.h. In the last 4 years, the Coal India Ltd stock has surged by more than 325%.

Company Analysis

Below you’ll find Coal India Limited’s company information like financials, fundamentals, and shareholding patterns. This information plays an important role in identifying good companies for investing.

Key Insights

• Company with low debt.
• Profit margins are not stable.
• Low share pledge by promoters.
• Coal India Ltd is a profitable company.
• In the recent earnings, there is no major growth.
• Institutions are investing in Coal India Ltd company.
• Coal India Ltd is growing above the industry median.
• The company making profits from its business consistently.

3. Vodafone Idea Ltd

Vodafone Idea Ltd is an Indian telecom service provider in India. Due to some problems before years, the company is no longer profitable but the government is supporting the company in some way. As per the experts, in the future, the company can do better and give investors good returns.

Investing in Vodafone Idea Ltd is very risky as it is loss-making and it does not have money. The services and the infrastructure are also not good, so it is also hard for the company to get money from banks or investors. Know Vodafone Idea share price target 2024, 2025, and 2026.

Company Analysis

Below you’ll find Vodafone Idea Limited’s company information like financials, fundamentals, and shareholding patterns. This information plays an important role in identifying good companies for investing.

Key Insights

• In the recent quarter results, there is no growth.
• FIIs are increasing their holdings in the company.
• Promoters and government decreasing their holdings.
• Vodafone Idea’s stock is trading at very low PE (PE<=10)
• From FY23 – FY24 the net loss of the company is increasing.
• Promoters pledge their 48.91% shareholdings of the company.
• Vodafone Idea Ltd has been a loss-making company for years.

4. ONGC Ltd

ONGC (Oil & Natural Gas Corporation) was founded in 1956, the company is one of the largest players in the energy sector in India. ONGC is an Indian government company under the Ministry of Petroleum and Natural Gas.

As of 22 August 2024, the all-time high of the ONGC stock was made in 2014 and after almost 10 years i.e. in 2024, the stock is near its all-time high. Most likely it will now create a fresh all-time high soon. The stock is trading at Rs. 324 and its market cap is Rs. 4,08,230Cr.

Company Analysis

Below you’ll find ONGC Limited’s company information like financials, fundamentals, and shareholding patterns. This information plays an important role in identifying good companies for investing.

Key Insights

• Low debt company.
• Company with low promoter pledge.
• ONGC Ltd is making profits consistently.
• No major growth in the recent earnings.
• Currently, institutions are not investing.
• The company’s profit margins are not stable.
• ONGC is growing above the industry median.
• Earnings have not improved over the years.

5. Bank of India

Bank of India is one of the leading public sector banks in India. The bank was founded in 1906. As of now, the managing director of the Bank of India is Mr. Rajneesh Karnatak.

For the last 4 years, the bank has consistently made profits, and the profits have increased over the years too. The financials of the bank are very volatile as in a few years it is profitable and in some years loss-making bank.

As of 22 August 2024, the Bank of India’s stock price is trading at Rs. 119.78, and its market cap is Rs. 54,313 Crore. Like other banks, this bank provides almost all the banking services and products to its customers.

Company Analysis

Below you’ll find Bank of India’s company information like financials, fundamentals, and shareholding patterns. This information plays an important role in identifying good companies for investing.

Key Insights

• Bank with low promoter pledge
• The trend in NPA is not increasing
• No increasing provisions in the NPA
• The bank is growing above the industry median.
• The net interest margins of the bank are stable.
• No major growth in the recent earnings of the bank.
• Bank of India’s profits have increased over the years.
• Bank of India has been making profits consistently over the years.

6. GMR Airports Infrastructure Ltd

GMR Airports Infrastructure Ltd is a well-known company. It is involved in various business development and management of airports, coal mining, energy, etc. The company was founded in 1978 and as of now, its managing director is Mr. Grandhi Kumar.

Currently, GMR Airports Infrastructure Ltd is not a profitable company but its net loss is reducing yearly over the years. Probably in the upcoming few years, it will become a profitable company.

Company Analysis

Below you’ll find GMR Airports Infrastructure Limited’s company information like financials, fundamentals, and shareholding patterns. This information plays an important role in identifying good companies for investing.

Key Insights

• Company with low debt.
• Earnings are not improving.
• Profit margins are unstable.
• Institutions are investing in the company.
• Profit margins above the industry median.
• The company is not making profits consistently.

7. Rajesh Exports Ltd

Rajesh Exports Limited is involved in the gold-related business. The company has a solid presence in the industry globally. It was founded in 1995 and its managing director is Mr. Suresh Kumar.

The core business of the Rajesh Exports Limited company is a gold retail chain with 80+ showrooms, gold refining, and gold manufacturing.

Company Analysis

Below you’ll find Rajesh Exports Limited’s company information like financials, fundamentals, and shareholding patterns. This information plays an important role in identifying good companies for investing.

Key Insights

• Profit margins are not stable.
• Low debt on Rajesh Export Ltd company.
• Earnings have not improved over the years.
• Rajesh Exports Ltd is making a profit consistently.
• FIIs are decreasing their holdings over the quarters.
• Quarterly earnings are decreasing over the quarters.
• Rajesh Exports is not growing above the industry median.
• The company’s profit margins are below the industry median.

8. Andhra Paper Ltd

Andhra Paper Ltd is involved in the business of Paper. The company has a manufacturing capacity of 240,000 tonnes of paper per annum. It was established in 1964 and the managing director is Mr. Saurabh Bangur.

Andhra Paper Ltd is engaged in manufacturing and selling paper, pulp and paper, and paper boards. The company manufactures a wide range of paper products for various uses and purposes.

Company Analysis

Below you’ll find Andhra Paper Limited’s company information like financials, fundamentals, and shareholding patterns. This information plays an important role in identifying good companies for investing.

Key Insights

• Low debt on the company.
• Profit margins are not stable.
• Company with zero promoter pledge.
• profit margins are above the industry median.
• Earnings have not improved over the years.
• Institutions are investing in the Andhra Paper Ltd company.
• FIIs have decreased their shareholdings over the last 3 quarters.
• In the recent quarterly results, the earnings are declining sharply.
• Andhra Paper Ltd is a profitable company & making a profit consistently.

9. Bajaj Finserv Ltd

Bajaj Finserv Ltd is one of the major players in the NBFC (Non-banking financial services). The company offers a large number of financial services and products like loans, life insurance, general insurance, investments, etc.

As in the sector, there is very high competition among the big players like HDFC Bank, Kotak, etc. but still Bajaj Finserv Ltd is a major player and it is profitable and its profits have also increased over the years.

Company Analysis

Below you’ll find Bajaj Finserv Limited’s company information like financials, fundamentals, and shareholding patterns. This information plays an important role in identifying good companies for investing.

Key Insights

• No share pledge by the promoters.
• Bajaj Finserv Ltd is a profitable company.
• Profit margins or the company is not stable.
• Company’s earnings are rising on anully basis.
• The company is growing above the industry median.
• No major earnings growth in the recent quarterly results.
• The company does not generate cash from its operations.
• The profit margin of the company is below the industry median.

10. MSTC Ltd

MSTC (Metal Scrap Trade Corporation) Ltd is an Indian public sector company under the Ministry of Steel, Government of India. The company was founded in 1964 and its managing director is Mr. Surinder Gupta.

MSTC Ltd is an e-commerce company that provides many related services like e-auction, e-sale, e-procurement, and many more. There are also many services and products that the company provides.

Company Analysis

Below you’ll find MSTC Limited’s company information like financials, fundamentals, and shareholding patterns. This information plays an important role in identifying good companies for investing.

Key Insights

• Low debt on the company.
• Profit margins are not stable.
• Company with low promoter pledge.
• The company is growing below the industry median.
• MSTC Ltd’s earnings have not improved over the years.
• The company’s profit margins are above the industry median.
• MSTC Ltd is a profitable company and consistently makes profits.
• In the last quarter, FIIs increased their shareholding in the stock/company.

FAQs

Final Words

Investing in undervalued stocks is slightly risky but in case your analysis is right you are going to get high returns on your investments. We shortlisted some fundamentally strong but undervalued stocks from various industries or sectors. These stocks are good for long-term investments as per their profits, debt-to-ratio, financials, etc. This analysis is for educational purposes, do your research before investing or ask your financial SEBI registered advisor.