3 Indian Stocks Trading Below Fair Value on Cash Flow Estimates

Inflation paths look uneven, central banks remain cautious, and energy prices react to geopolitics. In this kind of market, investors often look for a margin of safety in cash flows rather than headline stories. The Undervalued Stocks Based On Cash Flows screener focuses on companies that SWS DCF analysis suggests are trading below fair value, based on their ability to generate cash. That can help you concentrate on cash flow strength when sentiment is mixed. In this article, you will see 3 stocks that currently stand out on this screener and learn what makes their cash flow profiles appealing.

Tega Industries (NSEI:TEGA)

Overview: Tega Industries designs, manufactures, and installs wear resistant consumables and process equipment such as mill liners, hydrocyclones, trommels, and conveyor components that help mining and mineral processing customers keep their plants running efficiently. Operating across India, Latin America, Africa, North America, Europe, and other regions, Tega focuses on recurring consumable products used in grinding, screening, and material handling.

Operations: Tega generates most of its revenue from Consumables at ₹14,339.9 million, with Equipments contributing ₹2,687.53 million and India accounting for ₹3,730.77 million of total sales versus ₹13,188.59 million from outside India.

Market Cap: ₹112.49b

Tega Industries is noted for its global footprint and focus on high wear consumables that can create repeat demand and support relatively stable cash flows, even when mining cycles are uneven. According to Simply Wall St’s DCF model, the company is priced as trading well below estimated fair value. Analysts currently forecast earnings and revenue growth; however, there are pressure points. Profit margins moved from 12.2% to 8.4%, recent earnings growth turned negative, and the funding mix relies heavily on external borrowing. For investors, the key question is whether Tega’s product positioning, expansion in regions such as Latin America and Africa, and upcoming dividend decisions can compensate for these margin and balance sheet risks over time.

Tega Industries appears to be priced as if recent margin pressure will persist, yet its consumables reach and cash generation present a more nuanced picture. Get the full picture in the 2 key rewards and 1 important warning sign

Gujarat Fluorochemicals (NSEI:FLUOROCHEM)

Overview: Gujarat Fluorochemicals manufactures and trades a wide range of fluorochemicals, fluoropolymers, refrigerant gases, battery chemicals, bulk chemicals, and renewable energy solutions that feed into sectors such as agrochemicals, pharmaceuticals, batteries, semiconductors, and electronics across India, Europe, the United States, and other international markets.

Operations: Gujarat Fluorochemicals generates virtually all of its revenue from Chemicals excluding EV products at ₹50.30b, while EV Products contribute ₹330 million and inter segment eliminations reduce reported revenue by ₹670 million.

Market Cap: ₹479.69b

Gujarat Fluorochemicals operates at the intersection of several long term themes, including fluoropolymers for semiconductors and aerospace, battery materials, and a growing refrigerant portfolio under the Montreal Protocol and Kigali Amendment framework. Analysts currently expect strong growth in earnings and revenue. At the same time, the stock trades well below Simply Wall St’s DCF fair value estimate, carries a rich P/E multiple, and has a balance sheet funded entirely by external borrowing. In addition, there is heavy capital expenditure for new capacity, regulatory and substitution risks around fluorinated materials, and recent steps into semiconductor and advanced materials. This creates a business where the quality of future cash flows is a key consideration alongside the broader growth narrative.

Gujarat Fluorochemicals sits at the crossroads of high expectation and heavy investment, with earnings forecasts and a rich P/E that many investors only skim over. Scan the analyst forecasts for Gujarat Fluorochemicals to explore what the market might be missing.

Mangalore Refinery and Petrochemicals (BSE:500109)

Overview: Mangalore Refinery and Petrochemicals runs a large refinery complex that turns crude oil into fuels such as diesel, gasoline, aviation fuel and bitumen, as well as petrochemical products like polypropylene and aromatics. It sells these products in India and overseas through wholesale channels and its own retail outlets and operates as a subsidiary of Oil and Natural Gas Corporation.

Operations: Mangalore Refinery and Petrochemicals generates essentially all of its ₹1,095.65b in revenue from the downstream petroleum segment.

Market Cap: ₹297.77b

Investors looking at Mangalore Refinery and Petrochemicals are seeing a refinery that has recently moved into solid profitability. Q1 2027 results show strong revenue and earnings alongside a high current ROE, while the stock still trades well below Simply Wall St’s DCF estimate and at a lower P/E than many peers. At the same time, heavy reliance on imported crude, high debt that is not well covered by operating cash flow, and exposure to long term fuel demand shifts mean the story is not straightforward. The real interest lies in how recent pipeline authorization, retail expansion and petrochemical flexibility could reshape cash flows if margins and leverage improve from here.

Mangalore Refinery and Petrochemicals has earnings that look strong on the surface, yet high debt and crude dependence keep the real story complex. Explore how these factors interact in the analysis report for Mangalore Refinery and Petrochemicals

The three stocks covered here are just a starting sample, and the full Undervalued Stocks Based On Cash Flows screen has identified 24 more companies with cash flow stories that are just as compelling as the ones you have seen. Use Simply Wall St to identify and analyze the specific cash flow catalysts, valuation gaps and balance sheet traits that matter most to you through the Undervalued Stocks Based On Cash Flows screener.

Take Control of Your Investment Journey

If Mangalore Refinery and Petrochemicals or any of these companies have caught your attention, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value and track any new developments as they happen. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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