Top 5 undervalued Nifty50 stocks to keep in your watchlist
market indices, like Nifty and Sensex, are vital tools for investors, serving as benchmarks for measuring investment performance, gauging market sentiment, and tracking trends They simplify our understanding of market direction and economic conditions. They also enable the creation of diversified products like index funds and ETFs, offering broad market exposure. Stocks included in the indices are selected based on market capitalisation, liquidity, and financial stability.
These companies must have significant market value, high trading volumes, and strong financials. Indices represent various sectors and are periodically rebalanced to stay current. Given this scrutiny, adding index stocks to your watchlist can be a smart move.
Today, we’ll look at five undervalued Nifty 50 stocks worth considering. The mid-sized bank caters to the retail and corporate sectors. In retail, it has a significant presence in auto loans and microfinance.
IndusInd Bank reported net advances at ₹3.5 trillion for the quarter ended 30 June 2024, up 16% YoY from ₹3 trillion in the corresponding quarter of the last financial year. Deposits grew 15% YoY to ₹4.0 trillion in the reporting quarter, up from ₹3.5 trillion in the year-ago period. Sequentially, net advances grew 1% to ₹3.4 trillion from the March-ended quarter, while deposits were up 4% QoQ from ₹3.8 trillion, indicating consistent deposit growth.
The CASA ratio in the June-ended quarter stood at 36.7%, down from 39.9% in Q1FY24 and 37.9% in Q4FY24. The bank's net profit has grown at a CAGR of 22% over the last five years, with an RoE of 16.4%. IndusInd Bank continued to invest in its distribution network, opening 378 branches during FY24 and 1,073 branches over the last four years.
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