Discovering Undiscovered Gems in India September 2024

The Indian market has shown remarkable resilience, increasing by 1.3% over the last week and climbing 45% over 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 for investors seeking to capitalize on these favorable conditions.

Top 10 Undiscovered Gems With Strong Fundamentals In India

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Bengal & Assam	4.48%	1.53%	51.11%	★★★★★★
Shree Digvijay Cement	0.01%	13.97%	16.37%	★★★★★★
All E Technologies	NA	40.78%	31.63%	★★★★★★
Vidhi Specialty Food Ingredients	7.27%	11.00%	4.02%	★★★★★★
Spright Agro	0.58%	83.13%	86.22%	★★★★★☆
Avantel	10.67%	34.84%	36.61%	★★★★★☆
Network People Services Technologies	0.24%	81.82%	86.35%	★★★★★☆
Genesys International	12.13%	15.75%	36.33%	★★★★★☆
Hampton Sky Realty	28.23%	14.27%	27.19%	★★★★☆☆
SG Mart	16.77%	98.09%	96.54%	★★★★☆☆

Click here to see the full list of 475 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

Here's a peek at a few of the choices from the screener.

Arkade Developers (NSEI:ARKADE)

Simply Wall St Value Rating: ★★★★★☆

Overview: Arkade Developers Limited operates as a real estate development company in India with a market cap of ₹28.89 billion.

Operations: Arkade Developers generates revenue primarily from real estate development, amounting to ₹6.35 billion.

Arkade Developers, a small cap player in India's real estate sector, has shown impressive earnings growth of 141.9% over the past year, outpacing the industry’s 24.1%. Trading at 53.9% below its estimated fair value, it offers significant upside potential. The company reported net income of INR 1.23 billion for FY2024, up from INR 507.83 million in FY2023 and boasts a satisfactory net debt to equity ratio of 14.2%. Additionally, Arkade's recent IPO raised INR 4.1 billion, indicating strong market confidence and future growth prospects.

• Dive into the specifics of Arkade Developers here with our thorough health report.

• Evaluate Arkade Developers' historical performance by accessing our past performance report.

Godawari Power & Ispat (NSEI:GPIL)

Simply Wall St Value Rating: ★★★★★★

Overview: Godawari Power & Ispat Limited, along with its subsidiaries, is involved in the mining of iron ores in India and has a market cap of ₹136.48 billion.

Operations: GPIL generates revenue primarily from the mining of iron ores. The company has experienced fluctuations in its net profit margin, which was reported at 12.34% in the most recent financial period.

Over the past five years, GPIL has significantly improved its financial health, reducing its debt to equity ratio from 141.1% to 1.1%. The company is trading at a favorable P/E ratio of 13.8x compared to the Indian market's 34.1x, indicating good value relative to peers and industry standards. Recent earnings growth of 42.1% outpaced the Metals and Mining sector's average of 19.3%, showcasing robust performance in a competitive landscape.

• Unlock comprehensive insights into our analysis of Godawari Power & Ispat stock in this health report.

• Gain insights into Godawari Power & Ispat's past trends and performance with our Past report.

Network People Services Technologies (NSEI:NPST)

Simply Wall St Value Rating: ★★★★★☆

Overview: Network People Services Technologies Limited develops payments infrastructure for banks, payment aggregators, and merchants in India with a market cap of ₹56.05 billion.

Operations: NPST generates revenue primarily from its Software & Programming segment, amounting to ₹1.62 billion.

Network People Services Technologies (NPST) has shown impressive financial performance recently. Over the past year, earnings surged by 222.5%, significantly outpacing the Diversified Financial industry’s growth of 29.2%. The company’s debt to equity ratio increased from 0% to 0.2% over five years, but it maintains more cash than total debt, indicating strong financial health. NPST's interest payments are well covered by EBIT at a staggering 2231x coverage, showcasing robust profitability and operational efficiency.

• Get an in-depth perspective on Network People Services Technologies' performance by reading our health report here.

• Explore historical data to track Network People Services Technologies' performance over time in our Past section.

Summing It All Up

• Explore the 475 names from our Indian Undiscovered Gems With Strong Fundamentals screener here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• 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.

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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