Unveiling 3 Undiscovered Gems In India For Your Portfolio

Over the last 7 days, the Indian market has risen 1.1%, driven by gains in the Financials and Consumer Discretionary sectors of 0.9% and 1.6%, respectively, while climbing an impressive 41% over the past year. In this dynamic environment, identifying stocks with strong growth potential and solid fundamentals can be key to enhancing your portfolio's performance.

Top 10 Undiscovered Gems With Strong Fundamentals In India

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Bengal & Assam	4.48%	1.53%	51.11%	★★★★★★
Wealth First Portfolio Managers	NA	-47.95%	40.47%	★★★★★★
Goldiam International	0.74%	10.81%	15.85%	★★★★★★
Vidhi Specialty Food Ingredients	7.27%	11.00%	4.02%	★★★★★★
Bharat Rasayan	8.15%	0.10%	-7.93%	★★★★★★
Master Trust	37.05%	27.64%	41.99%	★★★★★☆
Ingersoll-Rand (India)	1.05%	14.88%	27.54%	★★★★★☆
Nibe	39.26%	80.75%	84.69%	★★★★★☆
Insolation Energy	88.64%	163.87%	419.31%	★★★★★☆
Monarch Networth Capital	32.66%	31.02%	50.24%	★★★★☆☆

Click here to see the full list of 474 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

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

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 ₹152.77 billion.

Operations: The primary revenue stream for LT Foods comes from the manufacture and storage of rice, generating ₹81.21 billion. The company's market cap stands at ₹152.77 billion.

Earnings for LT Foods have surged by 35.7% over the past year, significantly outpacing the Food industry's 16.7%. The company boasts a price-to-earnings ratio of 25x, which is attractive compared to the Indian market's 34.6x. Its net debt to equity ratio has impressively dropped from 116.4% to 26.8% over five years, signaling strong financial health. Additionally, earnings are forecasted to grow by another 10.53% annually, and interest payments on its debt are well covered with EBIT at a robust 10.8x coverage level.

• Get an in-depth perspective on LT Foods' performance by reading our health report here.

• Understand LT Foods' track record by examining 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 with a market cap of ₹134.31 billion.

Operations: Marksans Pharma Limited generates revenue primarily from the sale of pharmaceutical formulations, amounting to ₹22.68 billion. The company's market cap stands at ₹134.31 billion.

Marksans Pharma has shown impressive earnings growth of 21.7% over the past year, surpassing the industry average of 19.2%. The company's debt-to-equity ratio improved from 19.9% to 11.7% in five years, highlighting prudent financial management. Recent USFDA inspections at their Goa facility concluded successfully with a Voluntary Action Indicated classification, boosting credibility. Additionally, Marksans is eyeing M&As to expand into Europe, which could further enhance its market presence and profitability trajectory.

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

• Gain insights into Marksans Pharma's historical performance by reviewing our past performance report.

Zaggle Prepaid Ocean Services (NSEI:ZAGGLE)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Zaggle Prepaid Ocean Services Limited develops financial products and solutions for managing business expenses of corporates, SMEs, and startups through automated workflows, with a market cap of ₹57.43 billion.

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

Zaggle Prepaid Ocean Services has shown impressive earnings growth of 108.5% over the past year, outpacing the software industry average of 32.4%. The company’s EBIT covers its interest payments 31.5 times, indicating strong financial health. Recent agreements with HDFC ERGO and Blue Star Ltd highlight Zaggle's expanding client base and service offerings, including reward platforms and expense management solutions. Despite negative levered free cash flow in recent years, forecasts suggest a promising annual earnings growth rate of 32.65%.

• Click to explore a detailed breakdown of our findings in Zaggle Prepaid Ocean Services' health report.

• Examine Zaggle Prepaid Ocean Services' past performance report to understand how it has performed in the past.

Key Takeaways

• Explore the 474 names from our Indian Undiscovered Gems With Strong Fundamentals screener here.
• 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.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

Looking For Alternative Opportunities?

• 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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