CashNews.co
The Indian market has remained flat over the past week but has impressively risen by 45% over the last year, with earnings projected to grow by 17% annually. In such a dynamic environment, identifying stocks that are not only resilient but also poised for growth can be key to uncovering potential opportunities, making E.I.D.- Parry (India) and two other lesser-known companies worth considering.
Top 10 Undiscovered Gems With Strong Fundamentals In India
|
Name |
Debt To Equity |
Revenue Growth |
Earnings Growth |
Health Rating |
|---|---|---|---|---|
|
Wealth First Portfolio Managers |
THAT |
-47.95% |
40.47% |
★★★★★★ |
|
Kokuyo Camlin |
27.11% |
23.20% |
75.70% |
★★★★★★ |
|
Le Travenues Technology |
10.32% |
26.39% |
67.32% |
★★★★★★ |
|
Force Motors |
23.24% |
21.52% |
44.24% |
★★★★★☆ |
|
Pearl Global Industries |
72.24% |
19.89% |
41.91% |
★★★★★☆ |
|
Ingersoll-Rand (India) |
1.05% |
14.88% |
27.54% |
★★★★★☆ |
|
Kalyani Investment |
THAT |
20.74% |
6.35% |
★★★★★☆ |
|
Magadh Sugar & Energy |
85.44% |
6.65% |
13.60% |
★★★★☆☆ |
|
SG Mart |
16.77% |
98.09% |
96.54% |
★★★★☆☆ |
|
Rir Power Electronics |
54.23% |
16.42% |
34.78% |
★★★★☆☆ |
Click here to see the full list of 474 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.
We’re going to check out a few of the best picks from our screener tool.
Simply Wall St Value Rating: ★★★★★★
Overview: E.I.D.- Parry (India) Limited, with a market cap of ₹154.13 billion, operates in the manufacture and sale of sugar, nutraceuticals, and distillery products across India and international markets including North America and Europe.
Operations: E.I.D.- Parry (India) generates revenue primarily from its Nutrient and Allied Business, contributing ₹187.88 billion, followed by Crop Protection at ₹24.61 billion. The Distillery segment adds ₹8.54 billion, while Nutraceuticals contribute ₹2.34 billion to the overall revenue structure.
E.I.D.- Parry, a notable player in the Indian market, showcases impressive financial health with interest payments well covered by EBIT at 31.1 times. Over the past five years, its debt-to-equity ratio has significantly improved from 132.9% to 15.6%. Recent earnings growth of 13.1% outpaced the chemicals industry average of 10.7%, although future earnings are expected to decline by an average of 43.7% annually over three years, suggesting potential challenges ahead despite its current value proposition with a P/E ratio of 17.5x against the market’s 34.3x.
Simply Wall St Value Rating: ★★★★★☆
Overview: Jaiprakash Power Ventures Limited operates in the power generation and cement grinding sectors both in India and internationally, with a market capitalization of ₹131.24 billion.
Operations: The company’s primary revenue streams are derived from its power generation segment, contributing ₹61.68 billion, and coal segment at ₹6.59 billion. The net profit margin shows a significant trend worth noting.
Jaiprakash Power Ventures, a notable player in the energy sector, has seen its debt-to-equity ratio significantly drop from 254.1% to 37% over five years, indicating improved financial health. Despite a one-off loss of ₹6.9 billion impacting recent results, the company reported impressive earnings growth of 22,969%, outpacing industry averages. Trading at 68.4% below estimated fair value suggests potential undervaluation for investors eyeing opportunities in India’s renewable energy landscape.
Simply Wall St Value Rating: ★★★★★☆
Overview: Ujaas Energy Limited is involved in the generation of solar power in India and has a market capitalization of ₹69.46 billion.
Operations: Ujaas Energy Limited primarily generates revenue from its Solar Power Plant Operation, contributing ₹307.70 million. The company’s Electric Vehicle (EV) segment adds ₹41 million to the revenue stream.
Ujaas Energy, a small player in the energy sector, has seen significant financial shifts recently. The company reported revenue of ₹107.16 million for the first quarter ending June 2024, up from ₹74.83 million a year ago, with net income at ₹38.15 million compared to a loss of ₹58.57 million previously. Its debt-to-equity ratio improved dramatically over five years from 59% to 21%. Despite these gains, shares remain highly illiquid and revenue lacks substantial growth potential at just ₹258M annually.
Summing It All Up
Curious About Other Options?
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.
Companies discussed in this article include NSEI:EIDPARRY NSEI:JPPOWER and NSEI:UEL.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]