Discover 3 Undiscovered Gems In India With Promising Potential

The Indian market has climbed 1.6% over the last week and is up 43% over the past 12 months, with earnings forecast to grow by 17% annually. In this thriving environment, identifying stocks with strong fundamentals and growth potential can be key to capitalizing on these positive trends.

Top 10 Undiscovered Gems With Strong Fundamentals In India

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Le Travenues Technology	10.32%	26.39%	67.32%	★★★★★★
Yuken India	27.96%	12.35%	-44.41%	★★★★★★
Indo Amines	82.32%	17.15%	20.00%	★★★★★☆
Gallantt Ispat	18.85%	38.22%	31.27%	★★★★★☆
Master Trust	37.05%	27.57%	41.99%	★★★★★☆
Lotus Chocolate	13.51%	28.07%	-10.66%	★★★★★☆
Magadh Sugar & Energy	85.41%	6.90%	11.82%	★★★★☆☆
Sanstar	50.30%	37.73%	58.24%	★★★★☆☆
Sky Gold	127.01%	22.02%	48.03%	★★★★☆☆
Apollo Micro Systems	38.51%	10.59%	11.93%	★★★★☆☆

Click here to see the full list of 455 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

We're going to check out a few of the best picks from our screener tool.

BLS International Services (NSEI:BLS)

Simply Wall St Value Rating: ★★★★★★

Overview: BLS International Services Limited specializes in outsourcing and administrative tasks for visa, passport, and consular services to various diplomatic missions, with a market cap of ₹156.01 billion.

Operations: The company generates revenue primarily from Visa and Consular Services (₹14.71 billion) and Digital Services (₹3.34 billion).

BLS International Services has seen impressive earnings growth of 49.8% over the past year, outpacing the Professional Services industry’s 10.4%. The debt-to-equity ratio improved from 7.8 to 2.1 over five years, showing strong financial management. Recent Q1 results reported sales of INR 4,926.69 million and net income of INR 1,141.84 million compared to INR 689.13 million last year, reflecting robust performance and positive momentum in their operations and strategic initiatives like new HR leadership and expansion into Turkey with a subsidiary capitalized at TRY700 million (US$26M).

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

• Understand BLS International Services' track record by examining our Past report.

Newgen Software Technologies (NSEI:NEWGEN)

Simply Wall St Value Rating: ★★★★★★

Overview: Newgen Software Technologies Limited is a software company that offers products and solutions across various regions including India, Europe, the Middle East, Africa, the Asia Pacific, Australia, and the United States with a market cap of ₹146.42 billion.

Operations: Newgen Software Technologies generates revenue primarily from its Software & Programming segment, amounting to ₹13.07 billion. The company operates across various regions including India, Europe, the Middle East, Africa, the Asia Pacific, Australia, and the United States.

Newgen Software Technologies has shown impressive growth, with earnings increasing by 43.7% over the past year and surpassing the software industry's 28.6%. The company’s debt to equity ratio has improved significantly from 16.3% to 4% in five years, indicating prudent financial management. Recent first-quarter results reported sales of ₹3,147 million and net income of ₹475 million, reflecting robust performance. Additionally, Newgen announced a final dividend of ₹4 per share for FY2024 at its recent AGM on July 25th.

• Unlock comprehensive insights into our analysis of Newgen Software Technologies stock in this health report.

• Review our historical performance report to gain insights into Newgen Software Technologies''s past performance.

Tips Industries (NSEI:TIPSINDLTD)

Simply Wall St Value Rating: ★★★★★★

Overview: Tips Industries Limited engages in the acquisition and exploitation of music rights in India and internationally, with a market cap of ₹95.41 billion.

Operations: The company generates revenue primarily from music rights, with the Music (Audio/Video) segment contributing ₹2.63 billion.

Tips Industries, a small cap player in the entertainment sector, has demonstrated impressive financial health and growth. Over the past year, earnings surged by 66.2%, far outpacing the industry's 11.6% growth rate. The company significantly reduced its debt to equity ratio from 12.1% to 2.8% over five years and reported net income of ₹435.63 million for Q1 FY2025, up from ₹271.01 million a year ago. Additionally, they declared an interim dividend of ₹2 per share for FY2024-25.

• Delve into the full analysis health report here for a deeper understanding of Tips Industries.

• Learn about Tips Industries' historical performance.

Make It Happen

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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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