3 India Stocks With Steady Cash Flow That Deserve A Closer Look

Services activity in the US is running ahead of manufacturing, with the latest S&P Global Services PMI at 56.8 and the Composite PMI at 56. That keeps attention on companies that can turn steady demand into solid cash generation, even as higher yields pressure share prices. This article looks at three stocks from the Undervalued Stocks Based On Cash Flows screener that combine cash flow strength with discounted valuations.

The three stocks highlighted below are just a starting sample, with the full screen surfacing 26 more companies with equally compelling cash flow stories that are not covered here. To go deeper, use the Undervalued Stocks Based On Cash Flows screener to identify, analyze, and focus on the highest conviction ideas that fit your approach.

Entero Healthcare Solutions (NSEI:ENTERO)

Overview: Entero Healthcare Solutions runs a nationwide distribution network that brings pharmaceuticals, medical devices and hospital consumables from suppliers to pharmacies, hospitals and clinics, with imports, central warehousing, redistribution and last mile delivery at its core. This recurring distribution business is the clearest link to the Undervalued Stocks Based On Cash Flows theme because it is designed around steady, cash-generative activity rather than one off projects.

Operations: Entero Healthcare generates all of its ₹71,278.88 million revenue from trading pharmaceutical and surgical products in India.

Market Cap: ₹61.96 billion

Entero Healthcare Solutions is worth a closer look if you want exposure to India’s growing healthcare demand through a distributor whose core logistics and distribution spine supports recurring cash flows. The stock is trading well below the Simply Wall St DCF fair value estimate, even though Q1 FY2026 revenue of ₹19,435.02 million and net income of ₹381.62 million reflect ongoing cash generation in the core operations. At the same time, thin profit margins, reliance on acquisitions and rising competition from e-pharmacy platforms keep execution risk firmly on the table. For investors who can weigh that trade off, the combination of discounted cash flow valuation and a scaled distribution network could be too important to ignore.

Entero Healthcare Solutions pairs recurring distribution cash flows with a share price below the Simply Wall St fair value estimate. See how that gap looks in the DCF valuation analysis for Entero Healthcare Solutions and why thin margins could be the real twist.

Build your own cash flow shortlist

Entero Healthcare Solutions and the two other stocks in this list all came from a single screener, but the real edge is in setting your own rules. Use our flexible Screener to combine valuation, cash flow quality, growth and risk filters, or start with any of our curated Investing Ideas that match your style.

S H Kelkar (NSEI:SHK)

Overview: S H Kelkar is a long established fragrances and flavors producer that supplies scent and taste formulations for everyday personal care, home care and food products to domestic and multinational FMCG customers. This recurring formulations business is the clearest link to the Undervalued Stocks Based On Cash Flows theme, because branded and private label contracts can support relatively stable cash generation across cycles.

Operations: S H Kelkar generates ₹36,051.4 million from fragrances and ₹3,411.6 million from flavors, partly offset by a ₹15,057.3 million segment adjustment.

Market Cap: ₹21.80 billion

Investors looking at S H Kelkar are really weighing a cash flow story built on fragrances and flavors that feed into everyday consumer products against some real execution and balance sheet questions. The company trades well below the Simply Wall St DCF estimate, while Q1 FY2027 revenue of ₹6,632.3 million and net income of ₹454 million highlight the appeal of its recurring FMCG linked business. At the same time, thinner margins, weak interest coverage and an uneven dividend history indicate that financing costs and profitability still matter for how much of that cash flow reaches shareholders. For anyone willing to track margin repair and debt comfort, the gap between price and cash flow based valuation could merit closer attention.

Fragrance cash flows at S H Kelkar are tied to everyday consumer demand, yet the share price still lags the company’s own cash flow story. Read the 2 key rewards and 4 important warning signs (1 is major!) to see what might be masking the full picture.

Mangalore Refinery and Petrochemicals (BSE:500109)

Overview: Mangalore Refinery and Petrochemicals operates a large refinery in India that turns crude oil into fuels like diesel, petrol, LPG and naphtha, along with petrochemical products such as polypropylene, which together support sizeable and relatively steady operating cash flows that feed into cash flow based valuations.

Operations: Mangalore Refinery and Petrochemicals generates about ₹1,095.6b in revenue from its Downstream Petroleum Sector business.

Market Cap: ₹309.9b

Mangalore Refinery and Petrochemicals is worth a closer look if you want exposure to downstream cash flows that the market currently prices at a discount to Simply Wall St’s DCF estimate. The refinery and polypropylene operations sit at the center of this, with Q1 FY2026-27 revenue of ₹416,799m and net income of ₹9,457m helping to build a recent track record of profitability, even as debt coverage by operating cash flow remains a concern. High forecast earnings growth and a lower P/E than many Indian oil and gas peers hint at valuation support, while new independent directors and project leadership changes aim to keep future cash generation on track. The real question is whether those cash flows can comfortably keep pace with leverage and an energy system that is slowly changing.

Mangalore Refinery and Petrochemicals appears to be a valuation story that the market has not fully connected with yet. Tap into the full analysis report for Mangalore Refinery and Petrochemicals to see how cash flows and leverage might really interact.

Seeking Fresh Alternatives Before They Fly

Fresh opportunities often show breakout momentum before the crowd notices. Consider using any first-mover edge while information is still under the radar. Review the ideas below and decide whether they fit your own strategy and risk tolerance.

• Look for resilient cash generators that aim to hold up when sentiment turns by scanning the 292 resilient stocks with low risk scores for companies with sturdier balance sheets and measured risk profiles.
• Explore structural shifts in energy demand by reviewing the 92 nuclear energy infrastructure stocks packed with infrastructure stocks positioned around long term nuclear power projects and related services.
• Evaluate potential upside from real assets by checking the curated 32 elite gold producer stocks featuring elite producers where production scale and reserves sit at the center of the story.

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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