Undiscovered Gems in India to Explore This October 2024

Over the last 7 days, the Indian market has experienced a 4.7% drop, yet it boasts an impressive 39% increase over the past year, with earnings forecasted to grow by 17% annually. In this dynamic environment, identifying stocks with strong fundamentals and growth potential can uncover promising opportunities for investors seeking to navigate these fluctuations.

Top 10 Undiscovered Gems With Strong Fundamentals In India

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Bengal & Assam	4.48%	1.53%	51.11%	★★★★★★
NGL Fine-Chem	12.95%	15.22%	8.68%	★★★★★★
ELANTAS Beck India	NA	14.89%	24.83%	★★★★★★
TCPL Packaging	95.84%	15.51%	31.89%	★★★★★☆
BLS E-Services	1.67%	15.04%	51.58%	★★★★★☆
JSW Holdings	NA	21.35%	22.41%	★★★★★☆
Magadh Sugar & Energy	85.44%	6.65%	13.60%	★★★★☆☆
Sanstar	50.30%	-8.41%	48.59%	★★★★☆☆
Innovana Thinklabs	13.59%	12.51%	20.01%	★★★★☆☆
Vasa Denticity	0.11%	38.37%	48.77%	★★★★☆☆

Click here to see the full list of 461 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

We're going to check out a few of the best picks from our screener tool.

IIFL Securities (NSEI:IIFLSEC)

Simply Wall St Value Rating: ★★★★☆☆

Overview: IIFL Securities Limited offers capital market services in India's primary and secondary markets, with a market capitalization of ₹122.23 billion.

Operations: IIFL Securities generates revenue primarily from capital market activities, amounting to ₹20.25 billion, supplemented by facilities and ancillary services at ₹375.25 million and insurance broking and ancillary services contributing ₹2.77 billion.

IIFL Securities, a smaller player in India's financial landscape, shows promising potential with its earnings surging by 120% over the past year, outpacing the industry average of 63.6%. The company's price-to-earnings ratio of 19.7x is attractive compared to the broader market's 33.8x. Over five years, their debt-to-equity ratio improved from 117% to a more manageable 67%, indicating prudent financial management despite recent volatility in share price and free cash flow challenges.

• Unlock comprehensive insights into our analysis of IIFL Securities stock in this health report.

• Explore historical data to track IIFL Securities' performance over time in our Past section.

KRN Heat Exchanger and Refrigeration (NSEI:KRN)

Simply Wall St Value Rating: ★★★★☆☆

Overview: KRN Heat Exchanger and Refrigeration Limited specializes in manufacturing and selling aluminium and copper fin and tube-type heat exchangers for the HVACR industry, with a market cap of ₹26.26 billion.

Operations: KRN generates revenue primarily from the manufacture and sale of HVAC parts and accessories, amounting to ₹3.08 billion.

KRN Heat Exchanger and Refrigeration, a nimble player in the ventilation solutions sector, recently completed an IPO raising INR 3.42 billion to establish a new manufacturing facility. The company saw its earnings grow by 20.9% last year, outpacing the industry average. With net debt to equity at a satisfactory 37.5%, KRN's interest payments are well covered by EBIT at 28 times coverage, despite negative free cash flow of INR -635 million this year.

• Take a closer look at KRN Heat Exchanger and Refrigeration's potential here in our health report.

• Understand KRN Heat Exchanger and Refrigeration's track record by examining our Past report.

Ujaas Energy (NSEI:UEL)

Simply Wall St Value Rating: ★★★★★☆

Overview: Ujaas Energy Limited focuses on the generation of solar power in India and has a market capitalization of ₹80.40 billion.

Operations: The primary revenue stream for Ujaas Energy comes from its Solar Power Plant Operation, generating ₹307.70 million. The company also earns ₹41.00 million from its EV segment.

Ujaas Energy, a small player in the renewable energy sector, has shown notable financial improvement recently. The company reported a net income of ₹38.15 million for the quarter ending June 2024, bouncing back from a previous year's loss of ₹58.57 million. Revenue increased to ₹107.16 million from ₹74.83 million last year, with basic earnings per share at ₹0.36 compared to a loss per share previously recorded at INR 193.33. Ujaas also reduced its debt to equity ratio significantly over five years from 59% to 21%, indicating better financial health and potential growth opportunities within its industry context despite facing challenges like shareholder dilution and one-off losses impacting past results.

• Get an in-depth perspective on Ujaas Energy's performance by reading our health report here.

• Assess Ujaas Energy's past performance with our detailed historical performance reports.

Make It Happen

• Click this link to deep-dive into the 461 companies within our Indian Undiscovered Gems With Strong Fundamentals screener.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
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Interested In Other Possibilities?

• 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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