Undiscovered Gems in India to Watch This August 2024

The Indian market has shown impressive momentum, rising 1.7% over the last week and 46% over the past year, with earnings expected to grow by 17% annually. In this robust 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
Shree Digvijay Cement	0.01%	13.97%	16.37%	★★★★★★
Aeroflex Industries	0.04%	14.69%	33.38%	★★★★★★
AGI Infra	61.29%	29.12%	33.44%	★★★★★★
Gallantt Ispat	18.85%	37.56%	37.26%	★★★★★☆
Voith Paper Fabrics India	0.07%	10.95%	9.70%	★★★★★☆
Network People Services Technologies	0.24%	81.82%	86.36%	★★★★★☆
Monarch Networth Capital	32.66%	30.99%	50.24%	★★★★☆☆
SG Mart	16.77%	98.09%	96.54%	★★★★☆☆
Vasa Denticity	0.11%	38.37%	48.77%	★★★★☆☆
Abans Holdings	91.77%	13.13%	18.72%	★★★★☆☆

Click here to see the full list of 469 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 the primary and secondary markets in India, with a market cap of ₹83.23 billion.

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

IIFL Securities, a small-cap financial entity, has shown impressive earnings growth of 120.4% over the past year, outpacing the Capital Markets industry’s 63.6%. Its price-to-earnings ratio stands at 13.4x, significantly lower than the Indian market average of 33.9x. The company’s net debt to equity ratio has improved from 117.6% to 67.2% over five years and currently sits at a satisfactory level of 35.5%. However, recent regulatory issues have resulted in a penalty of INR 300K for incorrect client state mapping in their UCC database.

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

• Gain insights into IIFL Securities' past trends and performance with our Past report.

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 ₹128.90 billion.

Operations: The primary revenue stream for LT Foods Limited is the manufacture and storage of rice, generating ₹81.21 billion. The company's financial data reveals a focus on this segment as its core business driver.

LT Foods has shown impressive growth, with earnings up 35.7% over the past year, surpassing the food industry's 15%. The company's debt to equity ratio improved significantly from 116.4% to 26.8% in five years, while its interest payments are well covered by EBIT at a ratio of 10.8x. Trading at a P/E ratio of 21.1x below the Indian market's average of 33.9x, LT Foods also forecasts annual earnings growth of over 10%.

• Unlock comprehensive insights into our analysis of LT Foods stock in this health report.

• Understand LT Foods' track record by examining our Past report.

Netweb Technologies India (NSEI:NETWEB)

Simply Wall St Value Rating: ★★★★★★

Overview: Netweb Technologies India Limited designs, manufactures, and sells high-end computing solutions (HCS) in India with a market cap of ₹151.50 billion.

Operations: Netweb Technologies India Limited generates revenue primarily from the manufacturing and sale of computer servers, amounting to ₹8.14 billion.

Netweb Technologies India has shown impressive growth, with earnings surging 85.8% in the past year, outpacing the tech industry’s 11%. The company's debt to equity ratio improved significantly from 108% to 2.3% over five years. Recent Q1 results reported sales of INR 1.49 billion compared to INR 598 million a year ago, and net income rose to INR 154 million from INR 50.91 million last year. Additionally, Netweb announced a final dividend of INR 2 per share for FY2023-24, reflecting its robust financial health and commitment to shareholders.

• Take a closer look at Netweb Technologies India's potential here in our health report.

• Gain insights into Netweb Technologies India's historical performance by reviewing our past performance report.

Summing It All Up

• Investigate our full lineup of 469 Indian Undiscovered Gems With Strong Fundamentals right here.
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Ready To Venture Into Other Investment Styles?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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• 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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