Undiscovered Gems in India to Watch This September 2024

Over the past 7 days, the Indian market has risen 1.8%, and in the last year, it has climbed an impressive 41%, with earnings forecast to grow by 17% annually. In this thriving environment, identifying stocks with strong growth potential and solid fundamentals becomes crucial for investors looking to capitalize on emerging opportunities.

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%	★★★★★★
All E Technologies	NA	40.78%	31.63%	★★★★★★
Aeroflex Industries	0.04%	14.69%	33.38%	★★★★★★
AGI Infra	61.29%	29.16%	33.44%	★★★★★★
Om Infra	13.99%	43.36%	27.66%	★★★★★☆
Network People Services Technologies	0.24%	81.82%	86.35%	★★★★★☆
Insolation Energy	88.64%	163.87%	419.31%	★★★★★☆
BLS E-Services	1.67%	15.04%	51.58%	★★★★★☆
KP Green Engineering	13.73%	47.44%	61.28%	★★★★★☆
Abans Holdings	91.77%	13.13%	18.72%	★★★★☆☆

Click here to see the full list of 490 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, along with its subsidiaries, focuses on the research, development, manufacture, and marketing of enzymes and probiotics across various regions including India, Europe, the United States, Asia, and internationally; it has a market cap of ₹61.50 billion.

Operations: Advanced Enzyme Technologies generates revenue primarily from the manufacturing and sales of enzymes, amounting to ₹6.31 billion. The company's market cap stands at ₹61.50 billion.

Advanced Enzyme Technologies, a small-cap player in the enzyme industry, has demonstrated solid financial health with earnings growth of 18.9% over the past year and a net income of INR 341.52 million for Q1 2024. The company’s debt-to-equity ratio improved from 5% to 3.5% over five years, reflecting prudent financial management. Despite significant insider selling recently, it remains profitable with free cash flow at INR 940.56 million as of March 2024 and forecasts earnings growth at an impressive rate of 23.25%.

• Click here and access our complete health analysis report to understand the dynamics of Advanced Enzyme Technologies.

• Understand Advanced Enzyme Technologies' track record by examining 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 ₹151.02 billion.

Operations: LT Foods generates revenue primarily from the manufacture and storage of rice, amounting to ₹81.21 billion.

With a net debt to equity ratio of 25.3%, LT Foods shows satisfactory financial health, and its interest payments are well covered by EBIT at 10.8x. The company has demonstrated strong earnings growth of 35.7% over the past year, outpacing the food industry’s 16.7%. Additionally, its price-to-earnings ratio stands at an attractive 24.7x compared to the Indian market's average of 34.4x, suggesting good value relative to peers and industry standards.

• Click here to discover the nuances of LT Foods with our detailed analytical health report.

• Gain insights into LT Foods' past trends and performance with our Past report.

Marksans Pharma (NSEI:MARKSANS)

Simply Wall St Value Rating: ★★★★★★

Overview: Marksans Pharma Limited, along with its subsidiaries, focuses on the research, manufacturing, marketing, and sale of pharmaceutical formulations across various international markets including the United States, North America, Europe, the United Kingdom, Australia, and New Zealand; it has a market cap of ₹132.32 billion.

Operations: Marksans Pharma Limited generates revenue primarily from its pharmaceutical formulations segment, which reported ₹22.68 billion. The company's net profit margin is 15.5%.

Marksans Pharma has shown impressive earnings growth of 21.7% over the past year, outpacing the pharmaceuticals industry’s 19.2%. The company reported net income of INR 887.52 million for Q1 FY2025, up from INR 686.58 million a year ago, with basic earnings per share increasing to INR 1.96 from INR 1.52. Marksans' debt-to-equity ratio improved significantly over five years, dropping from 19.9% to 11.7%, and its interest payments are well-covered by EBIT (32x coverage).

• Click to explore a detailed breakdown of our findings in Marksans Pharma's health report.

• Assess Marksans Pharma's past performance with our detailed historical performance reports.

Where To Now?

• Click this link to deep-dive into the 490 companies within our Indian Undiscovered Gems With Strong Fundamentals screener.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Contemplating Other Strategies?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com