Stock Analysis

Discovering Undiscovered Gems in India August 2024

NSEI:GULFOILLUB
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Over the last 7 days, the Indian market has dropped 1.1%, but it has seen a remarkable increase of 41% over the past year, with earnings forecasted to grow by 17% annually. In this dynamic environment, identifying promising stocks that are still under the radar can offer significant opportunities for investors looking to capitalize on India's growth trajectory.

Top 10 Undiscovered Gems With Strong Fundamentals In India

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
3B Blackbio Dx0.38%-0.26%-1.39%★★★★★★
Macpower CNC MachinesNA22.04%31.09%★★★★★★
ELANTAS Beck IndiaNA14.89%24.83%★★★★★★
Pearl Global Industries72.24%19.89%41.91%★★★★★☆
Om Infra13.99%43.36%27.64%★★★★★☆
Indo Amines82.32%17.15%20.00%★★★★★☆
Lotus Chocolate13.51%28.07%-10.66%★★★★★☆
BLS E-Services1.67%15.04%51.58%★★★★★☆
Monarch Networth Capital32.66%30.99%50.24%★★★★☆☆
Share India Securities24.23%37.66%48.98%★★★★☆☆

Click here to see the full list of 445 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

Gallantt Ispat (NSEI:GALLANTT)

Simply Wall St Value Rating: ★★★★★☆

Overview: Gallantt Ispat Limited is involved in the manufacture of iron and steel both in India and internationally, with a market capitalization of ₹86.89 billion.

Operations: Gallantt Ispat generates revenue primarily from the manufacture of iron and steel, both domestically and internationally. The company has a market capitalization of ₹86.89 billion.

Earnings at Gallantt Ispat surged by 115.2% over the past year, outpacing the Metals and Mining industry’s 18.4%. The company repurchased shares in 2024, reflecting confidence in its growth trajectory. With a debt to equity ratio rising from 8.1% to 18.8% over five years and a satisfactory net debt to equity ratio of 16.6%, financial health remains robust. Recent quarterly revenue hit ₹11,608 million (up from ₹10,375 million), with net income soaring to ₹1,219 million (previously ₹307 million).

NSEI:GALLANTT Earnings and Revenue Growth as at Aug 2024
NSEI:GALLANTT Earnings and Revenue Growth as at Aug 2024

Gulf Oil Lubricants India (NSEI:GULFOILLUB)

Simply Wall St Value Rating: ★★★★★★

Overview: Gulf Oil Lubricants India Limited manufactures, markets, and trades lubricants for the automobile and industrial sectors in India, with a market cap of ₹65.41 billion.

Operations: Gulf Oil Lubricants India Limited generates its revenue primarily from the sale of lubricants, amounting to ₹33.83 billion. The company focuses on both the automobile and industrial sectors in India.

Gulf Oil Lubricants India, a small cap in the chemicals sector, reported impressive earnings growth of 33% over the past year, outpacing the industry average of 7.5%. The company's debt-to-equity ratio has improved significantly from 48.3% to 26.7% in five years, and it trades at a favorable P/E ratio of 20.1x compared to the Indian market's 33.2x. Recent appointment of Mr. Sandeep Bangia as Head Strategy and E Mobility highlights their focus on future growth areas like electric mobility and transformation initiatives.

NSEI:GULFOILLUB Debt to Equity as at Aug 2024
NSEI:GULFOILLUB Debt to Equity as at Aug 2024

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 in India and internationally, with a market cap of ₹78.63 billion.

Operations: Time Technoplast generates revenue primarily from the sale of polymer and composite products. The company's net profit margin has shown variability, reflecting changes in operational efficiency and market conditions.

Time Technoplast's earnings growth of 44.6% over the past year outpaced the Packaging industry’s 3.3%. The company’s net debt to equity ratio stands at a satisfactory 25.9%, down from 49% five years ago, showcasing improved financial health. Recent Q1 results revealed sales of ₹12,300 million and net income of ₹793 million, up from ₹10,793 million and ₹561 million respectively a year ago. The P/E ratio is favorable at 26x compared to the market’s 33x.

NSEI:TIMETECHNO Debt to Equity as at Aug 2024
NSEI:TIMETECHNO Debt to Equity as at Aug 2024

Summing It All Up

  • Reveal the 445 hidden gems among our Indian Undiscovered Gems With Strong Fundamentals screener with a single click here.
  • Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
  • Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

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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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