Undiscovered Gems In India Including IIFL Securities And 2 Other Small Cap Picks

In This Article:

In the last week, the Indian market has been flat, but it is up 43% over the past year with earnings expected to grow by 17% per annum over the next few years. In this promising landscape, identifying stocks with strong fundamentals and growth potential is key; here we explore IIFL Securities and two other small-cap picks that could be undiscovered gems.

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%

★★★★★★

ELANTAS Beck India

NA

14.89%

24.83%

★★★★★★

Timex Group India

14.33%

17.75%

59.68%

★★★★★★

Force Motors

23.24%

21.52%

44.24%

★★★★★☆

Voith Paper Fabrics India

0.07%

10.95%

9.70%

★★★★★☆

Piccadily Agro Industries

50.57%

13.86%

42.85%

★★★★★☆

Genesys International

12.13%

15.75%

36.33%

★★★★★☆

KP Green Engineering

13.73%

47.60%

61.28%

★★★★★☆

Kalyani Investment

NA

20.74%

6.35%

★★★★★☆

SG Mart

16.77%

98.09%

96.54%

★★★★☆☆

Click here to see the full list of 473 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

Let's explore several standout options from the results in the screener.

IIFL Securities

Simply Wall St Value Rating: ★★★★☆☆

Overview: IIFL Securities Limited offers a range of capital market services in India's primary and secondary markets, with a market cap of ₹98.80 billion.

Operations: IIFL Securities generates revenue primarily from capital market activities (₹20.25 billion), followed by insurance broking and ancillary services (₹2.77 billion), and facilities and ancillary services (₹375.25 million).

IIFL Securities has shown impressive earnings growth of 120.4% over the past year, outpacing the Capital Markets industry at 64%. The company’s price-to-earnings ratio stands at 15.9x, significantly lower than the Indian market's 34.3x, indicating good value. Additionally, IIFL's net debt to equity ratio has improved from 117.6% to a satisfactory 67.2% over five years. Despite recent volatility and a SEBI penalty of INR 300K, its strong earnings performance and strategic appointments like Hardik Sanghavi as CTO bolster confidence in its future prospects.

NSEI:IIFLSEC Earnings and Revenue Growth as at Sep 2024
NSEI:IIFLSEC Earnings and Revenue Growth as at Sep 2024

Marksans Pharma

Simply Wall St Value Rating: ★★★★★★

Overview: Marksans Pharma Limited, along with its subsidiaries, focuses on the research, manufacturing, marketing, and sale of pharmaceutical formulations across various international markets including the United States, North America, Europe, the United Kingdom, Australia, and New Zealand; it has a market cap of ₹118.41 billion.