Undiscovered Gems in India to Watch This September 2024

Over the last 7 days, the Indian market has remained flat, but it is up 41% over the past year with earnings expected to grow by 17% per annum over the next few years. In this dynamic 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
Goldiam International	0.74%	10.81%	15.85%	★★★★★★
3B Blackbio Dx	0.38%	-0.88%	-1.47%	★★★★★★
Vidhi Specialty Food Ingredients	7.27%	11.00%	4.02%	★★★★★★
NGL Fine-Chem	12.95%	15.22%	8.68%	★★★★★★
Yuken India	27.96%	12.35%	-44.41%	★★★★★★
Voith Paper Fabrics India	0.07%	10.95%	9.70%	★★★★★☆
Macpower CNC Machines	0.40%	22.04%	31.09%	★★★★★☆
Genesys International	12.13%	15.75%	36.33%	★★★★★☆
JSW Holdings	NA	21.35%	22.41%	★★★★★☆
Innovana Thinklabs	13.59%	12.51%	20.01%	★★★★☆☆

Click here to see the full list of 477 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the 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 the Gems & Jewellery segment, contributing ₹23.74 billion. The company has a market cap of ₹36.81 billion and operates within India, focusing on precious metals and ornaments.

D. P. Abhushan, a small-cap jewelry retailer in India, has shown impressive growth with earnings up 48.5% over the past year, surpassing the Specialty Retail industry’s 23%. The company reported Q1 sales of INR 5.05 billion and net income of INR 250.77 million, reflecting strong performance compared to last year’s figures. Additionally, its debt-to-equity ratio improved from 187% to 73% over five years while maintaining high-quality earnings and well-covered interest payments at 9x EBIT coverage.

• Click here and access our complete health analysis report to understand the dynamics of D. P. Abhushan.

• Review our historical performance report to gain insights into D. P. Abhushan's's past performance.

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 generates revenue primarily from Steel Structures (₹8.17 billion) and EPC Projects (₹4.85 billion).

Salasar Techno Engineering, a smaller player in the construction industry, has seen its debt to equity ratio drop from 79.5% to 77.7% over five years. Despite a solid earnings growth of 15.8% annually over the same period, recent insider selling raises concerns. The company's net debt to equity ratio stands at a satisfactory 38.1%. However, with interest payments on its debt not well covered by EBIT (2.4x), financial stability remains an issue worth monitoring closely.

• Dive into the specifics of Salasar Techno Engineering here with our thorough health report.

• Explore historical data to track Salasar Techno Engineering's performance over time in our Past section.

Zaggle Prepaid Ocean Services (NSEI:ZAGGLE)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Zaggle Prepaid Ocean Services Limited develops financial products and solutions to manage business expenses for corporates, SMEs, and startups through automated workflows, with a market cap of ₹45.06 billion.

Operations: Zaggle Prepaid Ocean Services Limited 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 has seen impressive earnings growth of 108.5% over the past year, outpacing the software industry average of 32.4%. Recent agreements with HDFC ERGO and Blue Star highlight its expanding client base and service offerings. The company reported Q1 sales of INR 2,522 million, up from INR 1,185 million a year ago, with net income rising to INR 167 million from INR 21 million. EBIT covers interest payments by a robust factor of 31.5x.

• Take a closer look at Zaggle Prepaid Ocean Services' potential here in our health report.

• Evaluate Zaggle Prepaid Ocean Services' historical performance by accessing our past performance report.

Make It Happen

• Unlock our comprehensive list of 477 Indian Undiscovered Gems With Strong Fundamentals by clicking here.
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Looking For Alternative Opportunities?

• 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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