6
Best Undervalued Stocks in India (2026)
Undervalued stocks are shares trading at valuation levels lower than their historical averages or sector peers, despite having stable business fundamentals. These stocks are commonly identified using metrics such as price-to-earnings (P/E), price-to-book (P/B), and free cash flow yields.
Reports from brokerages and market studies also indicate that valuation gaps tend to widen during periods of market volatility, creating pockets where fundamentally sound companies trade below their long-term valuation ranges.
Top Undervalued Stocks in India
Tuesday, 20 January, 2026
| symbol | Company | ticker | slug | Sector | Market Price | 52W High | 52W Low | Market Cap (Cr.) | PE Ratio | Industry PE | PB Ratio | Div. Yield (%) | ROE (%) | 1YReturns | 3YReturns | 5YReturns | Market Cap Label | Industry Group | Industry | Sub Industry | percentageChange |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BLAC | Black Rose Industries Ltd | BLACKROSE | /stocks/black-rose-industries-BLAC | Conglomerates | 91.27 | 137.95 | 87.00 | 465.48 | 22.23 | 40.33 | 3.05 | 3.45 | 14.06 | -25.80 | -45.13 | -30.20 | Smallcap | Capital Goods | Industrial Conglomerates | Trading Companies & Distributors | -3.91 |
| BMWV | BMW Ventures Ltd | BMWVENTLTD | /stocks/bmw-ventures-BMWV | Building Products - Pipes | 54.59 | 78.00 | 50.02 | 473.38 | 14.42 | 40.33 | 2.25 | 2.01 | 16.55 | -26.33 | -26.33 | -26.33 | Smallcap | Capital Goods | Building Products | Trading Companies & Distributors | 0.42 |
| CPL | Captain Polyplast Ltd | CPL | /stocks/captain-polyplast-CPL | Industrial Machinery | 71.19 | 118.95 | 58.41 | 426.63 | 13.62 | 40.33 | 2.86 | 0.00 | 25.59 | -37.08 | 309.14 | 80.91 | Smallcap | Capital Goods | Machinery | Agricultural & Farm Machinery | -0.63 |
| DICI | DIC India Ltd | DICIND | /stocks/dic-india-DICI | Specialty Chemicals | 507.20 | 748.00 | 450.50 | 465.56 | 23.84 | 28.93 | 1.12 | 0.79 | 4.81 | -20.07 | 34.06 | 25.87 | Smallcap | Materials | Chemicals | Specialty Chemicals | 0.90 |
| KNA | KN Agri Resources Ltd | KNAGRI | /stocks/kn-agri-resources-KNA | Agro Products | 173.00 | 295.90 | 161.35 | 432.48 | 11.67 | 35.24 | 1.23 | 0.00 | 11.14 | -40.65 | 22.26 | 18.49 | Smallcap | Food, Beverage & Tobacco | Food Products | Packaged Foods & Meats | -4.41 |
| LIBS | Liberty Shoes Ltd | LIBERTSHOE | /stocks/liberty-shoes-LIBS | Footwear | 239.10 | 482.00 | 238.25 | 407.43 | 30.02 | 41.65 | 1.83 | 0.00 | 6.29 | -50.01 | -11.08 | 63.77 | Smallcap | Consumer Durables & Apparel | Textiles, Apparel & Luxury Goods | Footwear | -5.65 |
| MBLI | MBL Infrastructure Ltd | MBLINFRA | /stocks/mbl-infrastructures-MBLI | Construction & Engineering | 27.01 | 65.01 | 25.56 | 411.98 | 2.43 | 40.33 | 0.43 | 0.00 | 20.00 | -57.56 | 24.76 | 39.59 | Smallcap | Capital Goods | Construction & Engineering | Construction & Engineering | -4.66 |
| PRAM | Pramara Promotions Ltd | PRAMARA | /stocks/pramara-promotions-PRAM | Advertising | 346.35 | 363.90 | 101.05 | 482.96 | 81.86 | 107.43 | 7.48 | 0.00 | 12.10 | 151.80 | 197.17 | 197.17 | Smallcap | Consumer Durables & Apparel | Media | Leisure Products | -0.65 |
| VER | Veritas (India) Ltd | VERITAS | /stocks/veritas-india-VER | Commodities Trading | 182.20 | 811.90 | 164.05 | 488.48 | 4.30 | 40.33 | 0.18 | 0.03 | 4.39 | -77.11 | -31.59 | 220.77 | Smallcap | Capital Goods | Trading Companies & Distributors | Trading Companies & Distributors | -1.98 |
| XTG | Xtglobal Infotech Ltd | XTGLOBAL | /stocks/xt-global-infotech-XTG | IT Services & Consulting | 29.65 | 46.25 | 28.65 | 416.71 | 45.44 | 28.66 | 2.19 | 0.00 | 5.11 | -30.35 | -41.01 | -41.01 | Smallcap | Software & Services | Software | IT Consulting & Other Services | -3.51 |
Disclaimer: Please note that these stocks’ valuations are dynamic and influenced by various factors. This information is for educational purposes only and is not recommendatory.
Note: The data in this undervalued stocks list in India is dynamic and subject to real-time changes. This data is derived from Tickertape Stock Screener on 29th December 2025, using the following parameters:
- Market Cap > ₹500 cr.
- 5Y Historical EPS Growth > 20%
- 5Y Avg Net Profit Margin > 15%
What are Undervalued Stocks?
Undervalued stocks in India are those trading below their intrinsic value, meaning the market hasn’t fully recognised their true worth. This mispricing can result from temporary market trends, company-specific issues, or investor sentiment. Identifying them isn’t about picking the cheapest stocks, but about spotting the best undervalued growth stocks available at a price below their fair value.
Top Undervalued Stocks in India
- KN Agri Resources Ltd: KN Agri Resources operates in the agricultural sector, focusing on processing and trading agricultural commodities. The company handles various agri-products and works across the value chain from procurement to distribution in domestic markets.
- BMW Ventures Ltd: BMW Ventures is a non-banking financial company (NBFC) that provides financial services, including loans and advances. The company operates in the financial services sector, offering credit facilities to individuals and businesses across different segments.
- MBL Infrastructure Ltd: MBL Infrastructure is a construction and infrastructure development company. The firm undertakes civil construction projects, road development, and infrastructure works for government and private sector clients across India.
- Black Rose Industries Ltd: Black Rose Industries manufactures and supplies steel products, including MS angles, channels, and other structural steel items. The company serves construction, infrastructure, and industrial sectors with its range of steel products.
- Pramara Promotions Ltd: Pramara Promotions operates in the media and entertainment sector. The company handles film production, distribution, and related activities in the Indian entertainment industry, working across multiple regional markets.
How to Invest in Undervalued Stocks 2026 in India?
Here is how one can invest in the top undervalued stocks in India:
- Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
- Conduct thorough research into undervalued stock opportunities, including undervalued large cap stocks. Investors can use tools like the Tickertape Stock Screener to do this. The screener offers 200+ built-in filters to choose from, and investors can choose the parameters to research.
- Place a ‘Buy’ Order on the undervalued stocks India of your choosing.
Features of Undervalued Stocks in India
- Priced Below Intrinsic Value: These are stocks where the market price sits lower than what the company’s financial health actually suggests. This creates an opportunity to buy quality at a discount, with potential for both growth and short-term gains.
- Growth Potential with Lower Investment: When you buy stocks that trade below their actual worth, you’re essentially banking on a future price correction. The idea is simple: you pick them up cheap today and wait for the market to wake up to their real value tomorrow.
- Strong Fundamental Analysis for Undervalued Stocks: Some companies have solid business models and consistent earnings, yet the market simply overlooks them. Take undervalued IT stocks in India, for instance. They’ve got strong fundamentals but haven’t caught the market’s attention yet, which makes them interesting opportunities.
- Low Risk in Established Companies: Look at undervalued large-cap stocks in India alongside undervalued small-cap stocks; they offer you both stability and growth. Large-cap companies come with proven track records. They’re less volatile than their smaller counterparts but still have room to climb in price.
Who can Consider Undervalued Stocks?
- Investors with Long Time Horizons: Markets don’t fix mispricing overnight. Undervalued stocks in India can take years—think 3-5 years or even longer—to hit their true worth. If you’re someone who can sit tight and wait it out, these might be worth your attention. Short-term investors usually get frustrated and bail before the real gains show up.
- Those with High Risk Tolerance: There’s a reason these stocks trade below their value. Maybe it’s poor market sentiment, temporary hiccups, or genuine business issues. Some of these stocks never bounce back. If you’re comfortable with uncertainty and the possibility of losses, you’ll handle undervalued stocks better than someone who needs guaranteed stability.
- People Who Research Thoroughly: You won’t find genuinely undervalued stocks by following tips on social media. This requires you to dig through financial statements, understand what’s happening in the industry, and spot what everyone else is missing. If you’re willing to put in that work, this space opens up for you.
- Those with Diversified Portfolios: Putting all your money into undervalued stocks is risky. But if you already have a balanced portfolio—some stable blue chips, bonds, and other investments- dedicating a portion to undervalued opportunities makes sense. This way, even if a few picks don’t pan out, your overall portfolio stays protected.
Advantages of Investing in Undervalued Shares?
- Lower Entry Cost: You get to buy quality shares at a discount. This means you need less money upfront, but you still get the same potential for future gains as someone who paid more.
- Potential for Price Appreciation: Undervalued stocks in India have plenty of room to grow. As the market gradually corrects their prices, you could see substantial returns once the stock climbs to its intrinsic value.
- Value Investing in Stocks: Putting your money into high-potential undervalued stocks in India is exactly what value investing is all about. You identify stocks priced below their real value, buy them, and hold on until their price catches up.
Risks of Investing in Undervalued Stocks in India
- Limited Liquidity: Stocks on the list of fundamentally strong but undervalued stocks in India typically don’t see much trading volume. When you need to sell quickly, you might struggle to find buyers.
- Longer Timeframe: The most undervalued stocks demand patience. Markets can take their sweet time recognising true value, which means your money stays locked in longer before you see returns.
- Risk of Loss: Just because a stock looks undervalued doesn’t guarantee it’ll rise. Market swings and other factors could push the price even lower instead of up.
Factors to Consider Before Investing in Undervalued Stocks in India
- Market Research: When you’re analysing the most undervalued stocks for long-term investment, start by examining the fundamentals. Stay updated with market news and review how the industry’s doing overall. This helps you figure out whether a stock is genuinely undervalued or there’s something else going on.
- Investment Thesis: Fundamentally strong but undervalued stocks in India can swing wildly in the short term, but they’ve got real potential to grow over longer periods. Before you invest in the most fundamentally strong but undervalued stocks, take a hard look at your risk appetite and how long you can keep your money invested.
- Set Realistic Expectations: Getting rich quickly in the stock market? That’s not how it works. Stock investments need time to mature, and you’ll see plenty of ups and downs along the way. That’s just normal market behaviour.
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To Wrap It Up…
Undervalued stocks in India have a market value that is lower than their intrinsic value. They offer the opportunity to buy stocks trading below their intrinsic value, potentially from companies with strong fundamentals, at a lower price. However, it is essential to do your research and understand the risks involved before investing in any undervalued stock.
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Frequently Asked Questions About Undervalued Stocks in India
1. What are undervalued stocks?
Undervalued stocks in India are priced below their true value, often because of market trends, sector challenges, or investor sentiment. To spot them, look for high-quality stocks that are trading for less than their fair value
2. How to check undervalued stocks in 2026?
To find the most undervalued stocks, investors should evaluate key financial ratios such as Price-to-Earnings (P/E), Price-to-Book (P/B), earnings growth, and other factors. Tickertape Stock Screener can help filter stocks, including undervalued large cap stocks, based on these metrics to find potentially undervalued ones.
3. Are undervalued stocks worth buying in 2025?
Whether undervalued stocks are a good buy in 2025 depends on factors like market conditions, the company’s financial health, sector performance, and your personal investment goals.
Note: Stock markets are subject to market fluctuations and investors should conduct their own research and/or consult a financial advisor before investing.
4. Do undervalued stocks always go up?
The stock market is always volatile and unpredictable. When it comes to the performance of a stock, it becomes dicey to say whether the stock is bearish or bullish. Company performance, industry trends, and broader market conditions impact stock prices. To analyse the list of undervalued stocks in India, you can use Tickertape Stock Screener.
5. Are undervalued stocks suitable for beginners?
For beginners, analysing undervalued stocks and understanding key metrics for long-term value investing can take time and careful analysis. Investors can consult a financial advisor or do thorough research to find the top undervalued stocks in India.
6. How to find undervalued stocks with a strong balance sheet?
Platforms like Tickertape offer screening tools that allow users to filter undervalued stocks in India based on key metrics such as P/E ratio, debt-to-equity ratio, cash reserves, and others. This helps identify companies with strong financial performance that meet specific investment criteria.
7. What stocks are undervalued?
Undervalued stocks trade below their intrinsic value based on fundamental metrics like P/E ratio, P/B ratio, or discounted cash flow analysis. Investors identify undervalued fundamentally strong stocks by comparing the current market price with the calculated fair value. However, undervalued fundamentally strong stocks may appear undervalued due to underlying business challenges or market conditions.
8. What are the risks associated with undervalued stocks?
Undervalued stocks carry risks, including value traps where low prices reflect genuine business problems, declining industries, poor management, or deteriorating fundamentals. These undervalued fundamentally strong stocks may face liquidity issues, extended recovery periods, or never reach expected valuations. Market sentiment can keep prices depressed despite apparent value.
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