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3 Undiscovered Gems In India With Strong Financial Foundations

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The market is up 2.6% in the last 7 days, with all sectors gaining ground. Over the past 12 months, the market is up 44%, and earnings are forecast to grow by 17% annually. In this thriving environment, identifying stocks with strong financial foundations can be crucial for long-term success.

Top 10 Undiscovered Gems With Strong Fundamentals In India

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Yuken India

27.96%

12.35%

-44.41%

★★★★★★

Kokuyo Camlin

27.11%

23.20%

75.70%

★★★★★★

Force Motors

23.24%

21.52%

44.24%

★★★★★☆

Indo Tech Transformers

2.30%

22.04%

60.31%

★★★★★☆

Spright Agro

0.58%

83.13%

86.22%

★★★★★☆

Avantel

10.67%

34.84%

36.61%

★★★★★☆

Kalyani Investment

NA

21.42%

6.35%

★★★★★☆

Magadh Sugar & Energy

85.44%

6.65%

13.60%

★★★★☆☆

Sky Gold

127.01%

22.02%

48.03%

★★★★☆☆

Innovana Thinklabs

13.59%

12.51%

20.01%

★★★★☆☆

Click here to see the full list of 460 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

Here's a peek at a few of the choices from 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 ₹68.43 billion.

Operations: IIFL Securities generates revenue primarily from capital market activities (₹20.25 billion) and also earns significant income from insurance broking and ancillary services (₹2.77 billion).

IIFL Securities, a notable player in India's financial sector, has shown impressive earnings growth of 120.4% over the past year, outpacing the Capital Markets industry's 64%. The company's price-to-earnings ratio stands at a favorable 12.4x compared to the Indian market's 32.9x. Over five years, its debt to equity ratio improved from 117.6% to 67.2%, reflecting prudent financial management. Recent regulatory issues include a INR300K penalty by SEBI for incorrect client data entries but seem manageable given their overall performance trajectory and high-quality earnings.

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

Marksans Pharma

Simply Wall St Value Rating: ★★★★★★

Overview: Marksans Pharma Limited, along with its subsidiaries, focuses on the research and development, manufacturing, marketing, and sale of generic pharmaceutical formulations globally and has a market cap of ₹99.76 billion.

Operations: Marksans Pharma Limited generates revenue primarily from its pharmaceuticals segment, which reported ₹22.68 billion. The company focuses on the research and development, manufacturing, marketing, and sale of generic pharmaceutical formulations globally.