Unveiling 3 Undiscovered Gems in India with Strong Fundamentals

Over the last 7 days, the Indian market has remained flat, but it is up 42% over the past year with earnings forecasted to grow by 17% annually. In this dynamic environment, identifying stocks with strong fundamentals can be crucial for long-term success.

Top 10 Undiscovered Gems With Strong Fundamentals In India

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Wealth First Portfolio Managers	NA	-47.95%	40.47%	★★★★★★
Bharat Rasayan	8.15%	0.10%	-7.93%	★★★★★★
Indo Amines	82.32%	17.15%	20.00%	★★★★★☆
Pearl Global Industries	72.24%	19.89%	41.91%	★★★★★☆
Om Infra	13.99%	43.36%	27.64%	★★★★★☆
Indo Tech Transformers	2.30%	22.04%	60.31%	★★★★★☆
Master Trust	37.05%	27.57%	41.99%	★★★★★☆
Ingersoll-Rand (India)	1.05%	14.88%	27.54%	★★★★★☆
Lotus Chocolate	13.51%	28.07%	-10.66%	★★★★★☆
Sanstar	50.30%	-8.41%	48.59%	★★★★☆☆

Click here to see the full list of 473 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 India's primary and secondary markets with a market cap of ₹98.80 billion.

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

IIFL Securities, a promising player in India's capital markets, reported impressive earnings growth of 120.4% over the past year, outpacing the industry average of 63.6%. The company's net debt to equity ratio stands at a satisfactory 35.5%, reflecting prudent financial management as it reduced from 117.6% five years ago. Despite recent volatility in its share price, IIFLSEC's P/E ratio of 16.8x remains attractive compared to the broader Indian market's 34.5x.

• Click here to discover the nuances of IIFL Securities with our detailed analytical health report.

• Assess IIFL Securities' past performance with our detailed historical performance reports.

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: The primary revenue stream for LT Foods Limited is the manufacture and storage of rice, generating ₹81.21 billion. The company focuses on both branded and non-branded basmati rice products in domestic and international markets.

LT Foods shows promising potential with a net debt to equity ratio of 25.3%, reflecting prudent financial management. Earnings surged by 35.7% last year, outpacing the food industry’s 15% growth, and are expected to rise by another 10.53% annually. Trading at a P/E ratio of 23.7x, it offers good value compared to the Indian market's average of 34.5x, while its EBIT covers interest payments tenfold (10.8x coverage).

• Delve into the full analysis health report here for a deeper understanding of LT Foods.

• Explore historical data to track LT Foods' performance over time in our Past section.

Sundaram Finance Holdings (NSEI:SUNDARMHLD)

Simply Wall St Value Rating: ★★★★★☆

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

Operations: Sundaram Finance Holdings Limited generates revenue primarily from investments (₹2.51 billion), domestic shared services (₹105.51 million), and overseas shared services (₹489.78 million).

Sundaram Finance Holdings (SFH) has shown notable performance with earnings growth of 114.5% over the past year, surpassing the Auto Components industry’s 20.1%. The company’s price-to-earnings ratio stands at 15.9x, considerably lower than the Indian market average of 34.5x, indicating good value. With a debt to equity ratio rising from 0% to 0.4% over five years and net income for Q1 FY2024 at INR 1,103 million compared to INR 707 million last year, SFH demonstrates robust financial health and growth potential in its sector.

• Click to explore a detailed breakdown of our findings in Sundaram Finance Holdings' health report.

• Review our historical performance report to gain insights into Sundaram Finance Holdings''s past performance.

Summing It All Up

• Navigate through the entire inventory of 473 Indian Undiscovered Gems With Strong Fundamentals here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

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.

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