Undiscovered Gems In India Featuring 3 Promising Small Caps

Over the last 7 days, the Indian market has dropped 1.1%, but it has risen by an impressive 41% over the past year, with earnings expected to grow by 17% per annum in the coming years. In this dynamic environment, identifying promising small-cap stocks can be a strategic move for investors looking to capitalize on growth opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In India

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Bharat Rasayan	8.15%	0.10%	-7.93%	★★★★★★
NGL Fine-Chem	12.95%	15.22%	8.68%	★★★★★★
AGI Infra	61.29%	29.13%	33.44%	★★★★★★
Knowledge Marine & Engineering Works	35.48%	46.55%	46.96%	★★★★★★
TCPL Packaging	95.84%	15.51%	31.89%	★★★★★☆
Kalyani Investment	NA	21.42%	6.35%	★★★★★☆
Magadh Sugar & Energy	85.41%	6.65%	13.60%	★★★★☆☆
Sky Gold	127.01%	22.02%	48.03%	★★★★☆☆
Apollo Micro Systems	38.51%	10.59%	11.93%	★★★★☆☆
SG Mart	16.77%	98.09%	96.54%	★★★★☆☆

Click here to see the full list of 450 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

We'll examine a selection from our screener results.

Gallantt Ispat (NSEI:GALLANTT)

Simply Wall St Value Rating: ★★★★★☆

Overview: Gallantt Ispat Limited manufactures iron and steel in India and internationally, with a market cap of ₹86.89 billion.

Operations: Gallantt Ispat Limited generates revenue primarily through the manufacture and sale of iron and steel products. The company has a market cap of ₹86.89 billion.

Gallantt Ispat, a promising player in the metals and mining sector, has seen its debt to equity ratio rise from 8.1% to 18.8% over five years, yet it remains satisfactory at 16.6%. Recent earnings growth of 115.2% outpaces industry averages, reflecting robust performance with net income hitting INR 1.22 billion for Q1 2024 compared to INR 307 million last year. With a P/E ratio of 27.5x below the market average and EBIT covering interest payments by a factor of 16.8x, Gallantt presents an attractive investment case amidst rising revenues and high-quality earnings.

• Delve into the full analysis health report here for a deeper understanding of Gallantt Ispat.

• Examine Gallantt Ispat's past performance report to understand how it has performed in the past.

Marksans Pharma (NSEI:MARKSANS)

Simply Wall St Value Rating: ★★★★★★

Overview: Marksans Pharma Limited, along with its subsidiaries, is involved in the research and development, manufacturing, marketing, and sale of generic pharmaceutical formulations globally and has a market cap of ₹97.13 billion.

Operations: Marksans Pharma generates revenue through the sale of generic pharmaceutical formulations globally. The company has a market cap of ₹97.13 billion.

Marksans Pharma, a small-cap pharmaceutical company, has shown impressive growth with earnings rising 21.7% over the past year, outpacing the industry’s 19.4%. The company's debt to equity ratio improved from 19.9% to 11.7% in five years and its interest payments are well covered by EBIT at 32.2x coverage. Recent earnings reported net income of ₹887 million compared to ₹687 million last year, while basic EPS increased from ₹1.52 to ₹1.96 per share.

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

• Gain insights into Marksans Pharma's past trends and performance with our Past report.

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 ₹86.77 billion.

Operations: Time Technoplast Limited generates revenue primarily from the sale of technology-based polymer and composite products. The company has a market cap of ₹86.77 billion.

Time Technoplast, a notable player in the packaging industry, has shown impressive earnings growth of 44.6% over the past year, outpacing its sector's 3.3%. With a net debt to equity ratio of 25.9%, it is considered satisfactory and well-managed financially. The company reported Q1 sales of ₹12.30 billion compared to ₹10.79 billion last year, with net income rising to ₹793 million from ₹561 million previously. Additionally, its interest payments are well covered by EBIT at 5.7x coverage, demonstrating strong financial health and operational efficiency.

• Unlock comprehensive insights into our analysis of Time Technoplast stock in this health report.

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

Taking Advantage

• Explore the 450 names from our Indian Undiscovered Gems With Strong Fundamentals screener here.
• Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

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.

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