Discovering 3 Hidden Gems In India For Your Portfolio

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The Indian market has seen a notable increase, rising by 1.6% over the last week and climbing 43% in the past year, with earnings projected to grow by 17% annually in the coming years. In this dynamic environment, identifying stocks with strong fundamentals and growth potential can significantly enhance your portfolio's performance.

Top 10 Undiscovered Gems With Strong Fundamentals In India

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

3B Blackbio Dx

0.38%

3.93%

3.59%

★★★★★★

Ingersoll-Rand (India)

NA

14.88%

27.54%

★★★★★★

Macpower CNC Machines

NA

20.01%

23.61%

★★★★★★

NGL Fine-Chem

12.95%

15.26%

8.68%

★★★★★★

Knowledge Marine & Engineering Works

35.48%

46.55%

46.96%

★★★★★★

Spright Agro

0.58%

83.13%

86.22%

★★★★★☆

Avantel

10.67%

34.84%

36.61%

★★★★★☆

Monarch Networth Capital

32.66%

30.99%

50.24%

★★★★☆☆

Share India Securities

24.23%

37.66%

48.98%

★★★★☆☆

SG Mart

16.77%

98.09%

96.54%

★★★★☆☆

Click here to see the full list of 448 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

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

Gallantt Ispat

Simply Wall St Value Rating: ★★★★★☆

Overview: Gallantt Ispat Limited engages in the manufacture of iron and steel in India and internationally, with a market cap of ₹87.02 billion.

Operations: Gallantt Ispat generates revenue primarily from the manufacture of iron and steel. The company has a market cap of ₹87.02 billion.

Gallantt Ispat, a promising player in India's metals and mining sector, reported impressive earnings growth of 115.2% over the past year, far outpacing the industry average of 17.2%. Recent Q1 results show revenue at ₹11.61 billion compared to ₹10.37 billion last year, with net income soaring to ₹1.22 billion from ₹307 million previously. The company’s debt-to-equity ratio rose from 8.1% to 18.8% over five years but remains manageable with EBIT covering interest payments 16.8 times over.

NSEI:GALLANTT Debt to Equity as at Aug 2024
NSEI:GALLANTT Debt to Equity as at Aug 2024

Gulf Oil Lubricants India

Simply Wall St Value Rating: ★★★★★★

Overview: Gulf Oil Lubricants India Limited manufactures, markets, and trades lubricants for the automobile and industrial sectors in India, with a market cap of ₹65.74 billion.

Operations: Gulf Oil Lubricants India Limited generates revenue primarily from the sale of lubricants, amounting to ₹33.83 billion. The company has a market cap of ₹65.74 billion.

Gulf Oil Lubricants India has seen a notable reduction in its debt to equity ratio from 48.3% to 26.7% over the past five years, indicating improved financial health. The company's earnings grew by 33% last year, outpacing the Chemicals industry growth of 7.6%. With a P/E ratio of 20.2x, it trades at a good value compared to the Indian market's average of 33.7x, and its interest payments are well covered by EBIT (14.9x).