Stock Analysis

Undiscovered Gems In India Featuring 3 Promising Small Caps

NSEI:MARKSANS
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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

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Bharat Rasayan8.15%0.10%-7.93%★★★★★★
NGL Fine-Chem12.95%15.22%8.68%★★★★★★
AGI Infra61.29%29.13%33.44%★★★★★★
Knowledge Marine & Engineering Works35.48%46.55%46.96%★★★★★★
TCPL Packaging95.84%15.51%31.89%★★★★★☆
Kalyani InvestmentNA21.42%6.35%★★★★★☆
Magadh Sugar & Energy85.41%6.65%13.60%★★★★☆☆
Sky Gold127.01%22.02%48.03%★★★★☆☆
Apollo Micro Systems38.51%10.59%11.93%★★★★☆☆
SG Mart16.77%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.

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

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.

NSEI:MARKSANS Earnings and Revenue Growth as at Aug 2024
NSEI:MARKSANS Earnings and Revenue Growth 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 ₹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.

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

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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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