3 Undiscovered Gems In India With Strong Potential

The Indian market has climbed by 2.5% over the past week, with every sector up, and over the past 12 months, it is up 45%, with earnings forecast to grow by 16% annually. In this thriving environment, identifying stocks with strong potential often involves looking beyond the well-known names to uncover lesser-known companies poised for growth.

Top 10 Undiscovered Gems With Strong Fundamentals In India

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
BLS E-Services	NA	43.93%	59.81%	★★★★★★
Bengal & Assam	4.48%	3.82%	47.41%	★★★★★☆
Indo Tech Transformers	2.30%	20.60%	62.92%	★★★★★☆
Spright Agro	0.58%	83.13%	86.22%	★★★★★☆
Avantel	10.67%	34.84%	36.61%	★★★★★☆
KP Green Engineering	13.73%	47.60%	61.28%	★★★★★☆
Kalyani Investment	NA	18.19%	3.65%	★★★★★☆
Vasa Denticity	0.11%	38.37%	48.77%	★★★★☆☆
Apollo Micro Systems	38.17%	7.94%	2.46%	★★★★☆☆
Rir Power Electronics	53.98%	13.52%	31.41%	★★★★☆☆

Click here to see the full list of 457 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Jai Balaji Industries (NSEI:JAIBALAJI)

Simply Wall St Value Rating: ★★★★★★

Overview: Jai Balaji Industries Limited manufactures and markets iron and steel products primarily in India, with a market cap of ₹159.91 billion.

Operations: The company generates revenue primarily from its iron and steel segment, amounting to ₹64.14 billion.

Jai Balaji Industries has shown impressive growth, with earnings surging by 1420.9% over the past year, far outpacing the Metals and Mining industry at 18.8%. Its interest payments are well covered by EBIT (11.3x), and a net debt to equity ratio of 25.3% is satisfactory. The company reported first-quarter sales of INR 171.83 million and net income of INR 20.88 million, reflecting strong financial health despite recent shareholder dilution through private placements.

• Navigate through the intricacies of Jai Balaji Industries with our comprehensive health report here.

• Gain insights into Jai Balaji Industries' past trends and performance with our Past report.

Lloyds Engineering Works (NSEI:LLOYDSENGG)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Lloyds Engineering Works Limited provides engineering products and services in India with a market cap of ₹105.02 billion.

Operations: Lloyds Engineering Works Limited generates revenue primarily from its engineering products and services, amounting to ₹6.24 billion.

Lloyds Engineering Works has shown impressive earnings growth of 116.8% over the past year, significantly outpacing the Machinery industry's 28.6%. Despite an increase in debt to equity ratio from 1.1% to 14.8% over five years, it remains profitable with high non-cash earnings and more cash than total debt. Recent board meetings discussed raising up to ₹12 billion through various equity methods and approved a dividend of ₹0.20 per share for the fiscal year ending March 2024.

• Dive into the specifics of Lloyds Engineering Works here with our thorough health report.

• Learn about Lloyds Engineering Works' historical performance.

Prudent Advisory Services (NSEI:PRUDENT)

Simply Wall St Value Rating: ★★★★★★

Overview: Prudent Corporate Advisory Services Limited offers advisory and distribution services for mutual funds to individuals, corporates, high net worth individuals (HNIs), and ultra HNIs in India and internationally, with a market cap of ₹98.84 billion.

Operations: Prudent Corporate Advisory Services Limited generates revenue primarily from the distribution and sale of financial products, totaling ₹8.23 billion. The company has a market cap of ₹98.84 billion.

Prudent Advisory Services, a promising small cap, has shown robust performance with earnings growing at 28.8% annually over the past five years. The company's revenue for the full year ended March 31, 2024, was INR 8.25 billion while net income reached INR 1.39 billion. Prudent is debt-free and reported basic earnings per share of INR 33.51 for the year compared to INR 28.18 previously, reflecting solid financial health and potential for continued growth in its sector.

• Take a closer look at Prudent Advisory Services' potential here in our health report.

• Explore historical data to track Prudent Advisory Services' performance over time in our Past section.

Where To Now?

• Delve into our full catalog of 457 Indian Undiscovered Gems With Strong Fundamentals here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Seeking Other Investments?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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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