Undiscovered Gems in India to Watch This July 2024

The Indian market has shown impressive strength, rising 2.5% in the last 7 days and up 45% over the past year, with all sectors gaining ground. In this thriving environment, identifying stocks with strong growth potential and solid earnings forecasts can be particularly rewarding; here are three undiscovered gems to watch this July 2024.

Top 10 Undiscovered Gems With Strong Fundamentals In India

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
3B Blackbio Dx	0.38%	3.93%	3.59%	★★★★★★
Macpower CNC Machines	NA	20.01%	23.61%	★★★★★★
BLS E-Services	NA	43.93%	59.81%	★★★★★★
Le Travenues Technology	8.99%	36.48%	63.83%	★★★★★★
Knowledge Marine & Engineering Works	35.48%	46.55%	46.96%	★★★★★★
KP Green Engineering	13.73%	47.60%	61.28%	★★★★★☆
JSW Holdings	NA	21.35%	22.41%	★★★★★☆
Magadh Sugar & Energy	85.41%	6.90%	11.82%	★★★★☆☆
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 459 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 ₹160.10 billion.

Operations: The company generates revenue primarily from its iron and steel products, amounting to ₹49.48 billion.

Jai Balaji Industries, a small-cap player in the Metals and Mining sector, has shown remarkable earnings growth of 244.5% over the past year, outpacing the industry average of 18.8%. The company reported net income of INR 20.88 million for Q1 2024 with basic earnings per share at INR 12.1. Despite shareholder dilution last year, its net debt to equity ratio stands at a satisfactory 25.4%, and interest payments are well-covered by EBIT (12.4x).

• Take a closer look at Jai Balaji Industries' potential here in our health report.

• Review our historical performance report to gain insights into Jai Balaji Industries''s past performance.

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 ₹105.11 billion.

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

Lloyds Engineering Works, a small cap player in the machinery industry, has shown impressive earnings growth of 116.8% over the past year, far outpacing the industry's 28.6%. The company reported first-quarter sales of INR 1.35 billion and net income of INR 212.18 million, reflecting solid financial performance. However, significant insider selling over the past three months and shareholder dilution raise some concerns despite having more cash than total debt and sufficient interest coverage from profits.

• Get an in-depth perspective on Lloyds Engineering Works' performance by reading our health report here.

• Gain insights into Lloyds Engineering Works' past trends and performance with our Past report.

Prudent Advisory Services (NSEI:PRUDENT)

Simply Wall St Value Rating: ★★★★★★

Overview: Prudent Corporate Advisory Services Limited offers advisory and distribution services of various mutual funds to individuals, corporates, high net worth individuals (HNIs), and ultra HNIs in India and internationally, with a market cap of ₹98.87 billion.

Operations: Prudent Corporate Advisory Services Limited generates revenue primarily from the distribution and sale of financial products, amounting to ₹8.23 billion. The company's market cap stands at ₹98.87 billion.

Prudent Advisory Services, a financial advisory firm, has demonstrated robust earnings growth of 28.8% annually over the past five years and is forecasted to grow by 22.77% per year. The company reported revenue of INR 8.25 billion for FY2024, up from INR 6.19 billion the previous year, with net income rising to INR 1.39 billion from INR 1.17 billion in the same period. Additionally, Prudent is debt-free and recently recommended a final dividend of INR 2 per share for FY2024.

• Navigate through the intricacies of Prudent Advisory Services with our comprehensive health report here.

• Assess Prudent Advisory Services' past performance with our detailed historical performance reports.

Next Steps

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Ready To Venture Into Other Investment Styles?

• 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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