3 Undiscovered Gems in India with Promising Potential

The Indian market has been flat over the last week, yet it is up 43% 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 key to uncovering hidden opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In India

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Kokuyo Camlin	27.11%	23.20%	75.70%	★★★★★★
Timex Group India	14.33%	17.75%	59.68%	★★★★★★
Indo Tech Transformers	2.30%	22.04%	60.31%	★★★★★☆
Ingersoll-Rand (India)	1.05%	14.88%	27.54%	★★★★★☆
JSW Holdings	NA	21.35%	22.41%	★★★★★☆
Magadh Sugar & Energy	85.44%	6.65%	13.60%	★★★★☆☆
Monarch Networth Capital	32.66%	30.99%	50.24%	★★★★☆☆
Sanstar	50.30%	-8.41%	48.59%	★★★★☆☆
Innovana Thinklabs	13.59%	12.51%	20.01%	★★★★☆☆
SG Mart	16.77%	98.09%	96.54%	★★★★☆☆

Click here to see the full list of 473 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

IIFL Securities (NSEI:IIFLSEC)

Simply Wall St Value Rating: ★★★★☆☆

Overview: IIFL Securities Limited offers capital market services in the primary and secondary markets in India and has a market cap of ₹98.80 billion.

Operations: IIFL Securities generates revenue primarily from capital market activities (₹20.25 billion), with additional income from insurance broking and ancillary services (₹2.77 billion) and facilities and ancillary services (₹375.25 million).

IIFL Securities has shown impressive earnings growth of 120.4% over the past year, surpassing the Capital Markets industry’s 63.6%. Their net debt to equity ratio stands at a satisfactory 35.5%, and they've reduced this from 117.6% to 67.2% in five years. The company reported Q1 revenue of ₹6,438 million (up from ₹4,110 million) and net income of ₹1,822 million (up from ₹747 million). Recent volatility in share price is notable but expected for a small cap stock like IIFLSEC

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

• Learn about IIFL Securities' historical performance.

LT Foods (NSEI:LTFOODS)

Simply Wall St Value Rating: ★★★★★★

Overview: LT Foods Limited engages in the milling, processing, and marketing of branded and non-branded basmati rice, and rice food products in India and internationally with a market cap of ₹144.60 billion.

Operations: LT Foods Limited generates revenue primarily from the manufacture and storage of rice, amounting to ₹81.21 billion. The company's net profit margin is a key financial metric to consider when evaluating its profitability.

LT Foods, a notable player in the food industry, has shown robust financial health with earnings growing 35.7% over the past year and a price-to-earnings ratio of 23.7x, which is below the Indian market average. The company’s net debt to equity ratio stands at 25.3%, reflecting solid financial management. Recent developments include an acquisition stake in Nature Bio-Foods Limited and a new U.K. facility poised for significant revenue growth, showcasing strategic expansion efforts.

• Click here and access our complete health analysis report to understand the dynamics of LT Foods.

• Gain insights into LT Foods' historical performance by reviewing our past performance report.

Sundaram Finance Holdings (NSEI:SUNDARMHLD)

Simply Wall St Value Rating: ★★★★★☆

Overview: Sundaram Finance Holdings Limited engages in the business of investments, business processing, and support services in India, Australia, and the United Kingdom with a market cap of ₹90.95 billion.

Operations: The company generates revenue primarily from investments (₹2.51 billion), domestic shared services (₹105.51 million), and overseas shared services (₹489.78 million).

Sundaram Finance Holdings has demonstrated a remarkable performance with earnings growth of 114.5% over the past year, outpacing the Auto Components industry’s 20.1%. The company’s debt to equity ratio slightly increased from 0% to 0.4% in five years but remains manageable as it holds more cash than total debt. With a price-to-earnings ratio of 15.9x, Sundaram is attractively valued against the Indian market average of 34.5x, and its EBIT covers interest payments by an impressive factor of 265.4 times.

• Take a closer look at Sundaram Finance Holdings' potential here in our health report.

• Assess Sundaram Finance Holdings' past performance with our detailed historical performance reports.

Seize The Opportunity

• Access the full spectrum of 473 Indian Undiscovered Gems With Strong Fundamentals by clicking on this link.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
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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.

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