Stock Analysis

Uncovering Advanced Enzyme Technologies And 2 Other Promising Indian Small Caps

NSEI:ZAGGLE
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Over the last 7 days, the Indian market has dropped 1.1%, but it remains up 40% over the past year with earnings expected to grow by 17% per annum. In this dynamic environment, identifying promising small-cap stocks like Advanced Enzyme Technologies can be key to capitalizing on growth opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In India

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Bharat Rasayan8.15%0.10%-7.93%★★★★★★
Om Infra13.99%43.36%27.64%★★★★★☆
Indo Tech Transformers2.30%22.05%60.31%★★★★★☆
Ingersoll-Rand (India)1.05%14.88%27.54%★★★★★☆
Genesys International12.13%15.75%36.33%★★★★★☆
BLS E-Services1.67%15.04%51.58%★★★★★☆
Monarch Networth Capital32.66%31.02%50.24%★★★★☆☆
Sky Gold127.01%22.02%48.03%★★★★☆☆
Sanstar50.30%-8.41%48.59%★★★★☆☆
Rir Power Electronics54.23%16.42%34.78%★★★★☆☆

Click here to see the full list of 481 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

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

Advanced Enzyme Technologies (NSEI:ADVENZYMES)

Simply Wall St Value Rating: ★★★★★★

Overview: Advanced Enzyme Technologies Limited, together with its subsidiaries, engages in the research, development, manufacture, and marketing of enzymes and probiotics in India, Europe, the United States, Asia, and internationally with a market cap of ₹57.14 billion.

Operations: Advanced Enzyme Technologies generates revenue primarily from the manufacturing and sales of enzymes, amounting to ₹6.31 billion. The company's financial performance includes a notable gross profit margin of 55%.

Advanced Enzyme Technologies has shown promising growth, with earnings rising 18.9% over the past year, outpacing the Chemicals industry’s 10.7%. The company’s debt to equity ratio improved from 5% to 3.5% in five years, and it holds more cash than its total debt. Recent Q1 results reported sales of ₹1,545 million and net income of ₹341 million compared to ₹288 million a year ago. Earnings per share increased from ₹2.58 to ₹3.05, reflecting solid performance despite insider selling in the last quarter.

NSEI:ADVENZYMES Debt to Equity as at Sep 2024
NSEI:ADVENZYMES Debt to Equity as at Sep 2024

Gokul Agro Resources (NSEI:GOKULAGRO)

Simply Wall St Value Rating: ★★★★★☆

Overview: Gokul Agro Resources Limited engages in the manufacture and trading of edible and non-edible oils, meals, and other agro products in India, with a market cap of ₹44.60 billion.

Operations: The primary revenue stream for Gokul Agro Resources Limited is from agro-based commodities, amounting to ₹156.80 billion. The company has a market cap of ₹44.60 billion.

Gokul Agro Resources has shown impressive financial health with a 28.4% earnings growth over the past year, outpacing the Food industry’s 16.6%. The debt to equity ratio improved significantly from 124.4% to 76.8% in five years, while its net debt to equity stands at a satisfactory 20.1%. Despite an EBIT coverage of interest payments at only 2.3x, the company remains profitable and free cash flow positive, indicating strong operational efficiency and stability in its sector.

NSEI:GOKULAGRO Earnings and Revenue Growth as at Sep 2024
NSEI:GOKULAGRO Earnings and Revenue Growth as at Sep 2024

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 ₹54.06 billion.

Operations: Zaggle Prepaid Ocean Services generates revenue primarily from program fees (₹4.01 billion), gift cards (₹4.76 billion), and platform/SaaS/service fees (₹326.27 million).

Zaggle Prepaid Ocean Services has shown impressive earnings growth of 108.5% over the past year, far outpacing the software industry's 32.4%. Recent agreements with major firms like HDFC ERGO and Blue Star Ltd highlight its expanding client base and service offerings. Despite a negative levered free cash flow of INR -1286.90 million as of March 2024, Zaggle's EBIT covers interest payments by 31.5 times, indicating strong financial health. The company also reported significant revenue growth for Q1 2025, reaching INR 2,567.23 million from INR 1,199.35 million a year ago.

NSEI:ZAGGLE Earnings and Revenue Growth as at Sep 2024
NSEI:ZAGGLE Earnings and Revenue Growth as at Sep 2024

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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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