Over the last 7 days, the Indian market has dropped 1.1%, driven by losses in the Financials and Energy sectors of 2.1% and 5.2%. Despite this short-term dip, the market is up 40% over the past year with earnings forecast to grow by 17% annually. In such a dynamic environment, identifying stocks with strong fundamentals and growth potential can be particularly rewarding for investors seeking undiscovered gems.
Top 10 Undiscovered Gems With Strong Fundamentals In India
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| 3B Blackbio Dx | 0.38% | -0.88% | -1.47% | ★★★★★★ |
| Kokuyo Camlin | 27.11% | 23.20% | 75.70% | ★★★★★★ |
| TCPL Packaging | 95.84% | 15.51% | 31.89% | ★★★★★☆ |
| Voith Paper Fabrics India | 0.07% | 10.95% | 9.70% | ★★★★★☆ |
| Avantel | 10.67% | 34.84% | 36.61% | ★★★★★☆ |
| Macpower CNC Machines | 0.40% | 22.04% | 31.09% | ★★★★★☆ |
| Spright Agro | 0.58% | 83.13% | 86.22% | ★★★★★☆ |
| Insolation Energy | 88.64% | 163.87% | 419.31% | ★★★★★☆ |
| Share India Securities | 24.23% | 37.59% | 48.98% | ★★★★☆☆ |
| Innovana Thinklabs | 13.59% | 12.51% | 20.01% | ★★★★☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
D. P. Abhushan (NSEI:DPABHUSHAN)
Simply Wall St Value Rating: ★★★★☆☆
Overview: D. P. Abhushan Limited engages in the manufacturing, sale, and trading of gold, diamond, platinum, silver, and other precious metals and ornaments in India with a market cap of ₹36.81 billion.
Operations: D. P. Abhushan generates revenue primarily from its Gems & Jewellery segment, amounting to ₹23.74 billion. The company has a market cap of ₹36.81 billion and focuses on the manufacturing, sale, and trading of precious metals and ornaments in India.
D.P. Abhushan, a notable player in India's retail jewelry sector, reported Q1 2024 sales of ₹5.05 billion (up from ₹4.71 billion) and net income of ₹250.77 million (up from ₹156.23 million). The company’s debt to equity ratio improved significantly over five years, dropping from 187% to 73%. Earnings growth at 48.5% outpaced the industry average of 23%. However, the net debt to equity ratio remains high at 61%, indicating potential financial leverage concerns despite strong earnings performance and expansion activities like the new showroom in Neemuch.
- Click to explore a detailed breakdown of our findings in D. P. Abhushan's health report.
Assess D. P. Abhushan's past performance with our detailed historical performance reports.
Salasar Techno Engineering (NSEI:SALASAR)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Salasar Techno Engineering Limited manufactures and sells galvanized and non-galvanized steel structures in India and internationally, with a market cap of ₹37.32 billion.
Operations: Salasar Techno Engineering Limited generates revenue primarily from steel structures (₹8.17 billion) and EPC projects (₹4.85 billion).
Salasar Techno Engineering, a small cap player, has seen its debt to equity ratio improve from 79.5% to 77.7% over the past five years while maintaining a satisfactory net debt to equity ratio of 38.1%. Despite high-quality earnings and an annual profit growth of 15.8%, its interest coverage by EBIT remains low at 2.4x, and significant insider selling occurred in the last three months. Earnings growth lagged behind the construction industry's average last year (24% vs. 36%).
- Unlock comprehensive insights into our analysis of Salasar Techno Engineering stock in this health report.
Learn about Salasar Techno Engineering's historical performance.
Zaggle Prepaid Ocean Services (NSEI:ZAGGLE)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Zaggle Prepaid Ocean Services Limited develops financial products and solutions for managing business expenses of corporates, SMEs, and startups through automated workflows, with a market cap of ₹45.06 billion.
Operations: Zaggle generates revenue primarily from Program Fees (₹4.01 billion), Propel Platform Revenue/Gift Cards (₹4.76 billion), and Platform/SaaS/Service Fees (₹326.27 million).
Zaggle Prepaid Ocean Services, a small cap player in the Indian market, has shown impressive earnings growth of 108.5% over the past year, outpacing the Software industry’s 32.4%. Recent agreements with HDFC ERGO and Blue Star Ltd highlight its expanding client base and service offerings. The company's net income for Q1 2024 was INR 167.34 million compared to INR 20.55 million last year. Zaggle's EBIT covers interest payments by a healthy margin of 31.5x, indicating strong financial health.
Make It Happen
- Investigate our full lineup of 477 Indian Undiscovered Gems With Strong Fundamentals right here.
- Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
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Want To Explore Some Alternatives?
- 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.
Valuation is complex, but we're here to simplify it.
Discover if Zaggle Prepaid Ocean Services might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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About NSEI:ZAGGLE
Zaggle Prepaid Ocean Services
Zaggle Prepaid Ocean Services Limited builds financial products and solutions to manage the business expenses of corporates, small and medium-sized enterprises, and startups through automated workflows.
High growth potential with proven track record.
