Undiscovered Gems In India To Watch This August 2024

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The Indian market is up 1.8% over the last week and has climbed 46% in the past year, with earnings forecast to grow by 17% annually. In such a thriving environment, identifying stocks with strong fundamentals and growth potential can be particularly rewarding.

Top 10 Undiscovered Gems With Strong Fundamentals In India

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Vidhi Specialty Food Ingredients

7.27%

11.00%

4.02%

★★★★★★

NGL Fine-Chem

12.95%

15.22%

8.68%

★★★★★★

Bharat Rasayan

8.15%

0.10%

-7.93%

★★★★★★

Bengal & Assam

4.48%

1.54%

51.11%

★★★★★☆

Force Motors

23.24%

21.52%

44.24%

★★★★★☆

Gallantt Ispat

18.85%

37.56%

37.26%

★★★★★☆

Nibe

39.26%

80.75%

84.68%

★★★★★☆

BLS E-Services

1.67%

15.04%

51.58%

★★★★★☆

Kalyani Investment

NA

20.74%

6.35%

★★★★★☆

SG Mart

16.77%

98.09%

96.54%

★★★★☆☆

Click here to see the full list of 466 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

Here's a peek at a few of the choices from the screener.

IIFL Securities

Simply Wall St Value Rating: ★★★★☆☆

Overview: IIFL Securities Limited offers capital market services in the primary and secondary markets in India, with a market cap of ₹85.13 billion.

Operations: IIFL Securities Limited generates revenue primarily from capital market activities (₹20.25 billion), with additional income from facilities and ancillary services (₹375.25 million) and insurance broking and ancillary services (₹2.77 billion).

IIFL Securities, a notable player in India's capital markets, has seen its earnings soar by 120.4% over the past year, outpacing the industry growth of 63.6%. The company reported Q1 revenue of INR 6.44 billion and net income of INR 1.82 billion, showcasing robust performance with basic EPS at INR 5.94 compared to last year's INR 2.45. Despite a volatile share price recently and a penalty from SEBI for regulatory lapses, IIFL's P/E ratio stands attractively low at 13.7x against the market's 33.9x while its debt-to-equity ratio has improved significantly from five years ago (117% to now around half).

NSEI:IIFLSEC Earnings and Revenue Growth as at Aug 2024
NSEI:IIFLSEC Earnings and Revenue Growth as at Aug 2024

Netweb Technologies India

Simply Wall St Value Rating: ★★★★★★

Overview: Netweb Technologies India Limited designs, manufactures, and sells high-end computing solutions (HCS) in India and has a market cap of ₹142.35 billion.

Operations: Netweb Technologies India Limited generates revenue primarily from the manufacturing and sale of computer servers, amounting to ₹8.14 billion.

Netweb Technologies India has demonstrated impressive financial health, with earnings growing 85.8% over the past year and surpassing the tech industry’s 11%. The company’s debt-to-equity ratio improved significantly from 108% to 2.3% in five years, reflecting strong balance sheet management. Recent quarterly results showed revenue at INR 1,532 million and net income of INR 154 million. Additionally, Netweb's interest payments are well covered by EBIT (17.7x), indicating robust operational efficiency.