Discovering Three Hidden Gems in India with Promising Potential

The Indian market has shown robust performance, rising 1.2% over the last week and climbing 41% in the past year, with earnings forecasted to grow by 17% annually. In this thriving 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
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%	★★★★★★
Yuken India	27.96%	12.35%	-44.41%	★★★★★★
ELANTAS Beck India	NA	14.89%	24.83%	★★★★★★
Timex Group India	14.33%	17.75%	59.68%	★★★★★★
Knowledge Marine & Engineering Works	35.48%	42.61%	42.95%	★★★★★★
Gallantt Ispat	18.85%	37.56%	37.26%	★★★★★☆
Master Trust	37.05%	27.64%	41.99%	★★★★★☆
Genesys International	12.13%	15.75%	36.33%	★★★★★☆

Click here to see the full list of 471 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

Let's uncover some gems from our specialized screener.

Akums Drugs and Pharmaceuticals (NSEI:AKUMS)

Simply Wall St Value Rating: ★★★★★☆

Overview: Akums Drugs and Pharmaceuticals Limited manufactures and sells pharmaceutical products and active pharmaceutical ingredients in India and internationally, with a market cap of ₹132.37 billion.

Operations: Akums generates revenue primarily from Contract Development and Manufacturing Organization (CDMO) services (₹36.32 billion), branded and generic formulations (₹6.76 billion), and active pharmaceutical ingredients (API) sales (₹3.03 billion). The company's net profit margin is a critical metric to evaluate its profitability.

Akums Drugs and Pharmaceuticals, a small-cap player in the pharmaceutical sector, has shown significant progress recently. The company reported sales of ₹10.19 billion for Q1 2024, up from ₹9.70 billion a year ago, with net income reaching ₹601.71 million compared to a net loss of ₹1.88 billion previously. Its net debt to equity ratio stands at 40%, which is satisfactory, and interest payments are well covered by EBIT (9.7x). The recent appointment of Mr. Shantanu R Chobhe as Corporate Quality Assurance Head underscores Akums' commitment to quality excellence and regulatory compliance.

• Delve into the full analysis health report here for a deeper understanding of Akums Drugs and Pharmaceuticals.

• Gain insights into Akums Drugs and Pharmaceuticals' past trends and performance with our Past report.

Indegene (NSEI:INDGN)

Simply Wall St Value Rating: ★★★★★☆

Overview: Indegene Limited operates as a life sciences commercialization company in India, the United States, Europe, and internationally with a market cap of ₹153.68 billion.

Operations: Indegene generates revenue primarily from Enterprise Commercial Solutions (₹15.36 billion), Enterprise Medical Solutions (₹6.49 billion), and Omnichannel Activation (₹3.35 billion).

Indegene has shown impressive earnings growth of 43.2% over the past year, surpassing the Life Sciences industry average of 13.3%. The company’s net income for Q1 2025 was INR 877 million, up from INR 684 million a year ago, with basic earnings per share rising to INR 3.79 from INR 3.09. Additionally, Indegene's EBIT covers interest payments by a factor of 9.5x, indicating strong financial health and high-quality earnings.

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

• Learn about Indegene's historical performance.

Sanstar (NSEI:SANSTAR)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Sanstar Limited manufactures and sells plant-based specialty products and ingredient solutions for various applications across multiple regions, with a market cap of ₹25.75 billion.

Operations: Sanstar Limited generates revenue primarily from its Corn Wet Milling segment, which reported ₹10.54 billion. The company operates across multiple regions including India, Asia, Africa, the Middle East, the Americas, Europe, and Oceania.

Sanstar's earnings grew by 43.8% in the past year, significantly outpacing the Food industry’s 16.3%. Despite a high net debt to equity ratio of 49%, its interest payments are well covered with EBIT at 10.2x coverage. The company reported Q1 sales of INR 2,908.77 million and net income of INR 165.07 million, up from INR 141.06 million last year, reflecting high-quality earnings amidst recent volatility in share price over three months.

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

• Evaluate Sanstar's historical performance by accessing our past performance report.

Seize The Opportunity

• Take a closer look at our Indian Undiscovered Gems With Strong Fundamentals list of 471 companies by clicking here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
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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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