List of Top Undervalued Stocks in Nifty 500 (2025)

Undervalued stocks are those shares traded at a price lower than their true or intrinsic value. Often overlooked by the broader market, these stocks can present a unique opportunity for investors seeking long-term gains. A range of factors, such as management quality, business strategies, and external conditions like geopolitical events, can influence a company’s stock price. However, the key lies in identifying stocks that are undervalued yet have the potential for growth. In this blog, we will explore the top 10 undervalued stocks in India, examining their potential benefits and drawbacks.

Top 10 Undervalued Stocks in India (2025)

Let’s have a look at the 10 best undervalued stocks based on the following fundamentals:

Disclaimer: Please note that the above table is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Note: The data in this under value share list is dynamic and subject to real-time changes. This data is derived from Tickertape Stock Screener, using the following parameters:

• Stock Universe: Nifty 500
• PE ratio: Set to Positive, >15

The PE Ratio is a key indicator used to assess whether a stock is currently undervalued and has potential for future profitability. Generally, a lower PE ratio suggests a higher 5-year average net profit margin.

The 5-year historical growth in earnings per share (EPS) and the average net profit margin provide insights into a company’s overall profitability and financial stability. A higher net profit margin indicates strong pricing power and effective cost control.🚀 Pro Tip: You can use Tickertape’s Stocks Screener to research and evaluate stocks with over 200+ filters and parameters.

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Overview of the Top Undervalued Stocks for 2025

Chennai Petroleum Corporation Ltd (CPCL)

A subsidiary of Indian Oil Corporation, CPCL operates one of India’s largest refineries, producing petroleum products like diesel, petrol, and lubricants. It plays a key role in South India’s energy sector.

Indian Oil Corporation Ltd (IOCL)

India’s largest oil refining and marketing company, IOCL operates refineries, fuel stations, and LPG distribution. It is a Fortune 500 company, supplying petroleum, natural gas, and petrochemicals across the country.

Bharat Petroleum Corporation Ltd (BPCL)

A major public sector oil and gas company, BPCL refines, markets, and distributes petroleum products. It operates refineries, fuel stations, and LPG distribution networks, catering to India’s energy needs.

Hindustan Petroleum Corporation Ltd (HPCL)

HPCL is a leading oil and gas company engaged in refining, marketing, and distributing petroleum products. It operates refineries and an extensive fuel retail network, serving industries and consumers alike.

Great Eastern Shipping Company Ltd

India’s largest private sector shipping company, it operates a fleet of crude oil tankers, dry bulk carriers, and gas carriers. The company provides maritime transportation services for oil, gas, and dry commodities worldwide.

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How to Invest in Undervalued Stocks in India?

Investing in undervalued stocks in India can be done through a few different avenues. One common way is direct stock picking, where you research and choose between various undervalued stock picks. Another option is through mutual funds, investment portfolios that focus on value investing – these funds pool money from different investors and invest in a diversified portfolio of undervalued stocks in India. Additionally, exchange-traded funds (ETFs) centred on stocks trading below their intrinsic value can be a convenient way to invest in a basket of such stocks that track a specific index.

What are Undervalued Stocks?

Undervalued stocks in India are those that are trading at a price lower than their real or intrinsic value. They are also called stocks trading below their intrinsic value. In other words, the market may not fully recognise or appreciate the true worth of these stocks. 

This could occur due to various reasons, such as temporary market conditions, company-specific factors, or investor sentiment. Identifying underperforming stocks in India doesn’t potentially mean finding low priced stocks. The key is to look for top undervalued growth stocks in India at prices under their fair values rather than looking for low growth potential stocks at a very low price.

Features of Undervalued Stocks

• Priced Intrinsic Value Of Stock: It is essentially a stock whose market price is lower than its financial metrics suggest, offering growth potential at a discounted price.
• Growth Potential with Lower Investment: One of the key features of stocks trading below their intrinsic value is their potential for future price correction. Investors can acquire these stocks at a lower price, hoping to benefit when the market recognises their true value.
• Strong Fundamentals: Many stocks are undervalued, especially in sectors like IT, and have strong fundamentals despite being overlooked by the market. For instance, undervalued IT stocks in India have solid business models and steady earnings, indicating they are poised for growth.
• Low Risk in Established Companies: Undervalued large cap stocks in India offer a balance between stability and growth. Large-cap companies have proven track records, making them part of low risk stocks in India, which are less volatile while still offering a chance for price appreciation.
• Attractive for Long-Term Investors: Investors focused on the long term often look for top undervalued stocks in India, as these stocks can deliver significant returns once the market corrects the undervaluation.

Advantages of Investing in Undervalued Shares?

Here are some advantages of investing in undervalued shares for investors who are willing to take on some risk and who have a long-term investment horizon. 

• Potential Returns: Undervalued stocks in India are typically trading below their intrinsic value, which means that they have the potential to appreciate in value over time. 
• Lower Prices: It presents an opportunity for investors to identify undervalued power stocks India at lower prices than what they have to pay for stocks that are trading at their fair value. 
• Value Investing: Investing in undervalued stocks NSE in India is a basic strategy in value investing. It involves identifying stocks that are trading below their intrinsic value and holding them until their value goes up. 

However, given the advantages, it is upto the investor to conduct their own research and/or consult a financial advisor before investing.

Risks Associated with Investing in Undervalued Stocks

• Limited Liquidity: Underpriced stocks in India may have limited trading volume, which makes them difficult to sell quickly when needed.
• Longer Time-Horizon: Investing in stocks trading below their intrinsic value can be a longer time horizon as the market may take time to realise the company’s true value.
• Risk of Loss: There is always the risk that an undervalued stock will not appreciate in value due to cyclical fluctuations in the market or other reasons. In fact, the stock can continue to decline in value, or it may even go bankrupt.

Factors to Keep in Mind While Investing in Undervalued Stocks

While undervalued stocks do come with a couple of risks, there are a number of strategies that investors can use to mitigate risks and potentially maximise returns while investing in the most undervalued stocks in India. Some of these strategies include:

• Diversification: By investing in a variety of most undervalued stocks in NSE India, you can reduce your risk if one stock performs poorly.
• Do Your Research: Before investing in any undervalued stock, research company’s balance sheets, read analyst reports, and follow industry news. 
• Stay for the Long Term: Undervalued stocks in India can be volatile in the short term, but they have the potential to appreciate in value over the long term.
• Set Realistic Expectations: Don’t expect to get rich quickly. Instead, focus on investing for the long term and gradually building your wealth.
• Use Stop-Loss Orders: A stop-loss order is an order to sell a stock if it falls below a certain price. This can help you to limit your losses if an undervalued stock begins to decline in value.

While identifying the intrinsic value of stock, investors must do their own research and/or consult their financial advisor before investing.

Key Factors and Ratios for Evaluating Undervalued Shares

Investors looking for undervalued stocks often analyse financial metrics to determine if a stock is overvalued or presents a buying opportunity at a discounted price. When assessing the top undervalued growth stocks, several critical factors and ratios can come into play, providing investors with valuable insights.

• Price-to-Earnings (P/E) Ratio: A lower P/E ratio of a stock suggests that a stock may be undervalued, as investors are paying less for each unit of earnings. 
• Price-to-Book (P/B) Ratio: A lower P/B ratio implies that the stock may be undervalued relative to its book value. It suggests that investors are potentially paying less than the company’s net worth per share.
• Dividend Yield: A stock with a higher dividend yield might indicate that investors can receive good returns on their investment through dividends, potentially suggesting undervaluation.
• Earnings Per Share (EPS) Growth: A higher EPS growth rate indicates that the company is performing well and is likely to continue growing in the future. Thus, this can enhance the value of a stock and price-to-earnings (P/E) ratio.
• Return on Equity (ROE): A higher ROE indicates that the company is efficiently utilizing its assets and generating a significant return on investment.
• Debt-to-equity Ratio: The D/E ratio measures a company’s debt against its assets. A higher debt-to-equity ratio signifies that a company has more debt than equity.

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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 chance to purchase stocks trading below their intrinsic value from well-established companies at a lower price. However, it is important to do your research and understand the risks involved before investing in any undervalued stock.

Frequently Asked Questions About Undervalued Stocks in India

Stocks Under Budget

If you are looking for stocks under a particular price range, here’s the collection of stocks under a specifc budget:

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