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Over the last 7 days, the Indian market has experienced a 3.6% drop, yet it has impressively risen by 40% over the past year, with earnings forecasted to grow by 17% annually. In such a dynamic environment, identifying stocks with strong fundamentals can be key to uncovering potential opportunities for long-term growth.
Top 10 Undiscovered Gems With Strong Fundamentals In India
|
Name |
Debt To Equity |
Revenue Growth |
Earnings Growth |
Health Rating |
|---|---|---|---|---|
|
Bengal & Assam |
4.48% |
1.53% |
51.11% |
★★★★★★ |
|
NGL Fine-Chem |
12.95% |
15.22% |
8.68% |
★★★★★★ |
|
ELANTAS Beck India |
THAT |
14.89% |
24.83% |
★★★★★★ |
|
TCPL Packaging |
95.84% |
15.51% |
31.89% |
★★★★★☆ |
|
BLS E-Services |
1.67% |
15.04% |
51.58% |
★★★★★☆ |
|
JSW Holdings |
THAT |
21.35% |
22.41% |
★★★★★☆ |
|
Magadh Sugar & Energy |
85.44% |
6.65% |
13.60% |
★★★★☆☆ |
|
Healthy |
50.30% |
-8.41% |
48.59% |
★★★★☆☆ |
|
Innovana Thinklabs |
13.59% |
12.51% |
20.01% |
★★★★☆☆ |
|
Vasa Denticity |
0.11% |
38.37% |
48.77% |
★★★★☆☆ |
Click here to see the full list of 461 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.
Here we highlight a subset of our preferred stocks from the screener.
Simply Wall St Value Rating: ★★★★☆☆
Overview: IIFL Securities Limited offers capital market services in India’s primary and secondary markets, with a market capitalization of ₹122.23 billion.
Operations: IIFL Securities generates revenue primarily from capital market activities, amounting to ₹20.25 billion, supplemented by facilities and ancillary services at ₹375.25 million and insurance broking at ₹2.77 billion.
IIFL Securities, a promising player in India’s financial sector, has shown impressive earnings growth of 120% over the past year, outpacing the industry average of 63.6%. The company’s net debt to equity ratio is satisfactory at 35.5%, reflecting prudent financial management. Despite a volatile share price recently, its price-to-earnings ratio of 19.7x suggests it offers good value compared to the broader Indian market’s 33.8x. Recent changes include a name change and leadership updates, potentially impacting future strategy and performance positively or negatively depending on execution and market conditions.
Simply Wall St Value Rating: ★★★★☆☆
Overview: KRN Heat Exchanger and Refrigeration Limited specializes in the manufacturing and sale of aluminium and copper fin and tube-type heat exchangers for the HVACR industry, with a market cap of ₹26.26 billion.
Operations: KRN Heat Exchanger and Refrigeration generates revenue primarily from the manufacture and sale of HVAC parts and accessories, amounting to ₹3.08 billion.
KRN Heat Exchanger and Refrigeration, a nimble player in the HVAC industry, recently completed an IPO worth INR 3.42 billion to fund a new manufacturing facility. Their net debt to equity ratio of 37.5% is satisfactory, with interest payments well covered by EBIT at 28 times. Despite illiquid shares, KRN’s earnings jumped by 20.9% over the past year, surpassing industry growth rates and reporting net income of INR 390 million for the fiscal year ending March 2024.
Simply Wall St Value Rating: ★★★★★☆
Overview: Ujaas Energy Limited focuses on the generation of solar power in India, with a market capitalization of ₹80.40 billion.
Operations: The company’s primary revenue stream is from Solar Power Plant Operation, generating ₹307.70 million, while the Electric Vehicle segment contributes ₹41.00 million.
Ujaas Energy, a small player in the renewable energy sector, has recently turned profitable with net income reaching ₹38.15 million for the quarter ending June 2024, contrasting a net loss of ₹58.57 million from the previous year. Revenue rose to ₹107.16 million from ₹74.83 million year-on-year, despite sales dipping slightly to ₹62.89 million from ₹71.84 million. The company’s debt situation improved significantly over five years, reducing its debt-to-equity ratio from 59% to 21%.
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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:IIFLSEC NSEI:KRN and NSEI:UEL.
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