The Indian market has shown impressive resilience, with the Information Technology sector gaining 4.0% while the overall market remained flat over the last week and up 44% over the past year. As earnings are forecast to grow by 17% annually, identifying strong growth potential in undiscovered stocks becomes crucial for investors looking to capitalize on these favorable conditions.
Top 10 Undiscovered Gems With Strong Fundamentals In India
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| Goldiam International | 0.74% | 10.79% | 15.85% | ★★★★★★ |
| Kokuyo Camlin | 27.11% | 23.20% | 75.70% | ★★★★★★ |
| Bengal & Assam | 4.48% | 1.54% | 51.11% | ★★★★★☆ |
| Master Trust | 37.05% | 27.57% | 41.99% | ★★★★★☆ |
| Avantel | 10.67% | 34.84% | 36.61% | ★★★★★☆ |
| Insolation Energy | 88.64% | 163.87% | 419.31% | ★★★★★☆ |
| JSW Holdings | NA | 21.35% | 22.41% | ★★★★★☆ |
| Apollo Micro Systems | 38.51% | 10.59% | 11.93% | ★★★★☆☆ |
| Vasa Denticity | 0.11% | 38.37% | 48.77% | ★★★★☆☆ |
| Rir Power Electronics | 54.23% | 16.42% | 34.78% | ★★★★☆☆ |
Let's review some notable picks from our screened stocks.
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, with a market cap of ₹114.75 billion.
Operations: LT Foods generates revenue primarily from the manufacture and storage of rice, amounting to ₹81.21 billion.
Earnings for LT Foods grew by 35.7% over the past year, outpacing the Food industry’s 13.9%. Trading at 4.3% below estimated fair value, it offers good relative value compared to peers. The company's debt to equity ratio has improved significantly from 116.4% to 26.8% in five years, and its net debt to equity ratio is a satisfactory 25.3%. Recent expansion into the UK market with a £7 million facility further underscores its growth potential and strategic positioning in the rice market worth £1 billion annually.
- Get an in-depth perspective on LT Foods' performance by reading our health report here.
Gain insights into LT Foods' past trends and performance with our Past report.
Newgen Software Technologies (NSEI:NEWGEN)
Simply Wall St Value Rating: ★★★★★★
Overview: Newgen Software Technologies Limited is a software company that offers products and solutions across various regions including India, Europe, the Middle East, Africa, the Asia Pacific, Australia, and the United States with a market cap of ₹151.89 billion.
Operations: Newgen Software Technologies Limited generates revenue primarily from its software and programming segment, totaling ₹13.07 billion. The company has a market cap of ₹151.89 billion.
Newgen Software Technologies has seen its debt to equity ratio drop from 16.3% to 4% over five years, reflecting strong financial management. The company reported Q1 2025 sales of INR 3,147.19 million and net income of INR 475.7 million, showcasing robust performance compared to the previous year. Additionally, Newgen's earnings growth of 43.7% outpaced the software industry average of 28.6%, highlighting its competitive edge in a dynamic market environment.
Time Technoplast (NSEI:TIMETECHNO)
Simply Wall St Value Rating: ★★★★★★
Overview: Time Technoplast Limited, along with its subsidiaries, manufactures and sells a variety of technology-based polymer and composite products both in India and internationally, with a market cap of ₹87.42 billion.
Operations: Time Technoplast generates revenue primarily from its Polymer Products segment, which contributes ₹33.43 billion, and its Composite Products segment, which adds ₹18 billion.
Time Technoplast's earnings surged 44.6% over the past year, outpacing the Packaging industry's 8.7%. The company's net debt to equity ratio stands at a satisfactory 25.9%, down from 49% five years ago. Recent figures show Q1 sales of INR 12,300 million and net income of INR 793 million, compared to INR 10,793 million and INR 561 million last year respectively. With a P/E ratio of 26.2x below the market average and EBIT covering interest payments by a factor of 5.7x, Time Technoplast demonstrates robust financial health and growth potential in its sector.
Seize The Opportunity
- Unlock more gems! Our Indian Undiscovered Gems With Strong Fundamentals screener has unearthed 450 more companies for you to explore.Click here to unveil our expertly curated list of 453 Indian Undiscovered Gems With Strong Fundamentals.
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Ready For A Different Approach?
- 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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About NSEI:LTFOODS
LT Foods
Engages in the milling, processing, and marketing of branded and non-branded basmati rice, and rice food products in India.
Flawless balance sheet average dividend payer.
