Undervalued stocks are those trading below their intrinsic value, offering potential for long-term investors who seek strong fundamentals and sustainable growth. As India’s economy is projected to expand by over 6% in FY27, sectors like banking, financial services, infrastructure, and capital markets are well-positioned for wealth creation. Here are seven undervalued stocks to consider for long-term growth this August.
1. Tamilnad Mercantile Bank Ltd
Market Cap: Rs. 14,179 crore
Tamilnad Mercantile Bank (TMB), trading at Rs. 894, has maintained solid asset quality and steady profitability while expanding its retail loan book. With a conservative lending approach and enhanced digital banking capabilities, this regional bank offers attractive long-term prospects. Established in 1921, TMB serves retail customers and MSMEs.
2. Godawari Power and Ispat Ltd
Market Cap: Rs. 20,501.30 crore
Godawari Power and Ispat benefits from India’s infrastructure and manufacturing boom. Its integrated steel business, captive power generation, and strong balance sheet help sustain healthy margins despite commodity price fluctuations.
3. Can Fin Homes Ltd
Market Cap: Rs. 10,861 crore
Trading at Rs. 816, Can Fin Homes is a housing finance company (HFC) registered with the National Housing Bank. Canara Bank holds a 29.99% stake. The company focuses on smaller-ticket housing loans to salaried and self-employed borrowers, with stable asset quality and steady loan growth supporting its long-term outlook.
4. ICICI Securities Ltd
Market Cap: Rs. 29,149 crore
ICICI Securities, trading at Rs. 896, provides institutional and retail broking, financial product distribution, merchant banking, and advisory services. Rising retail investor participation and vibrant equity markets continue to drive its brokerage business.
5. Motilal Oswal Financial Services Ltd
Market Cap: Rs. 52,429 crore
Founded in 1987, Motilal Oswal operates across 550+ cities with 2,500+ business locations and over 1.6 million customers. Trading at Rs. 869, the company generates diverse revenue streams through its diversified financial services model, capitalizing on India’s growing financialization.
6. Gujarat Mineral Development Corporation Ltd (GMDC)
Market Cap: Rs. 22,686.10 crore
GMDC is a key player in Indian mining, with exposure to lignite, bauxite, manganese, and other minerals. Government infrastructure spending and rising industrial demand underpin its strong long-term prospects.
7. Angel One Ltd
Market Cap: Rs. 27,785 crore
Angel One is a diversified financial services company engaged in stock, commodity, and currency broking, institutional broking, margin trading, depository services, mutual fund distribution, NBFC lending, and insurance corporate agency. Its broad service suite positions it well for continued growth.
Final Thoughts: These stocks appear undervalued under current market conditions, but investors should conduct their own research on valuation, earnings quality, and risks. A diversified, long-term approach is the best way to navigate market volatility.
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