Undiscovered Gems in India for September 2024

The Indian market has shown a modest increase of 1.3% over the last week, with notable gains in the Financials sector and a decline in Information Technology. Over the past year, the market has surged by 45%, with earnings projected to grow by 17% annually. In this dynamic environment, identifying stocks that are poised for growth yet remain underappreciated can offer significant opportunities for investors seeking to capitalize on India's robust economic trajectory.

Top 10 Undiscovered Gems With Strong Fundamentals In India

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
All E Technologies	NA	40.78%	31.63%	★★★★★★
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%	★★★★★★
Pearl Global Industries	72.24%	19.89%	41.91%	★★★★★☆
Om Infra	13.99%	43.36%	27.66%	★★★★★☆
KP Green Engineering	13.73%	47.44%	61.28%	★★★★★☆
Innovana Thinklabs	13.59%	12.51%	20.01%	★★★★☆☆
Rir Power Electronics	54.23%	16.42%	34.78%	★★★★☆☆

Click here to see the full list of 479 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Arkade Developers (NSEI:ARKADE)

Simply Wall St Value Rating: ★★★★★☆

Overview: Arkade Developers Limited is a real estate development company in India with a market cap of ₹28.94 billion.

Operations: Arkade generates revenue primarily through real estate development projects. The company's net profit margin stands at 12.5%, reflecting its profitability after accounting for all expenses.

Arkade Developers, a small cap real estate player, recently completed an IPO raising INR 4.1 billion. Over the past year, earnings surged by 142%, outpacing the industry’s 24%. Net income reached INR 1.23 billion from INR 507 million last year, reflecting high-quality earnings and strong growth. Trading at a significant discount of nearly 54% to its estimated fair value, Arkade's interest payments are well covered by EBIT (53x), with a satisfactory net debt to equity ratio of 13.8%.

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

• Assess Arkade Developers' past performance with our detailed historical performance reports.

Godawari Power & Ispat (NSEI:GPIL)

Simply Wall St Value Rating: ★★★★★★

Overview: Godawari Power & Ispat Limited, along with its subsidiaries, engages in iron ore mining in India and has a market capitalization of ₹134.62 billion.

Operations: GPIL generates revenue primarily from iron ore mining and related activities. The company reported a total revenue of ₹37.85 billion for the latest financial period. Its net profit margin stands at 16.45%.

Godawari Power & Ispat (GPIL) stands out with impressive earnings growth of 42.1% over the past year, significantly surpassing the industry average of 17.8%. The company boasts a favorable debt-to-equity ratio, reduced from 141.1% to 1.1% in five years, and a P/E ratio of 13.9x compared to the Indian market's 34.4x, indicating good value relative to peers and industry standards. Recent developments include a special dividend payout and share buybacks totaling ₹3 billion ($36 million), reflecting strong shareholder returns and financial health.

• Take a closer look at Godawari Power & Ispat's potential here in our health report.

• Learn about Godawari Power & Ispat's historical performance.

JSW Holdings (NSEI:JSWHL)

Simply Wall St Value Rating: ★★★★★☆

Overview: JSW Holdings Limited, a non-banking financial company, primarily engages in investing and financing activities in India with a market cap of ₹102.52 billion.

Operations: JSW Holdings generates revenue primarily from investing and financing activities, totaling ₹1.71 billion. The net profit margin stands at 98%.

JSW Holdings, a small cap in India, reported significant growth in net income for Q1 2024 at ₹525.81 million compared to ₹243.57 million the previous year. Their earnings per share also saw a notable increase from ₹21.95 to ₹47.38 during the same period. Despite negative earnings growth of -47% over the past year, JSW remains debt-free and boasts high-quality earnings. Recently added to the S&P Global BMI Index, it continues to attract attention for its robust financial health and strategic moves like appointing Akshat Chechani as Company Secretary and Key Managerial Personnel with over 15 years of experience in compliance matters.

• Delve into the full analysis health report here for a deeper understanding of JSW Holdings.

• Understand JSW Holdings' track record by examining our Past report.

Make It Happen

• Get an in-depth perspective on all 479 Indian Undiscovered Gems With Strong Fundamentals by using our screener here.
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Seeking Other Investments?

• 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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