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Discovering Undiscovered Gems in India September 2024

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The Indian market has shown remarkable resilience, increasing by 1.3% over the last week and climbing 45% over the past year, with earnings forecasted to grow by 17% annually. In this thriving environment, identifying stocks with strong fundamentals and growth potential can be particularly rewarding for investors seeking to capitalize on these favorable conditions.

Top 10 Undiscovered Gems With Strong Fundamentals In India

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Bengal & Assam

4.48%

1.53%

51.11%

★★★★★★

Shree Digvijay Cement

0.01%

13.97%

16.37%

★★★★★★

All E Technologies

NA

40.78%

31.63%

★★★★★★

Vidhi Specialty Food Ingredients

7.27%

11.00%

4.02%

★★★★★★

Spright Agro

0.58%

83.13%

86.22%

★★★★★☆

Avantel

10.67%

34.84%

36.61%

★★★★★☆

Network People Services Technologies

0.24%

81.82%

86.35%

★★★★★☆

Genesys International

12.13%

15.75%

36.33%

★★★★★☆

Hampton Sky Realty

28.23%

14.27%

27.19%

★★★★☆☆

SG Mart

16.77%

98.09%

96.54%

★★★★☆☆

Click here to see the full list of 475 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

Here's a peek at a few of the choices from the screener.

Arkade Developers

Simply Wall St Value Rating: ★★★★★☆

Overview: Arkade Developers Limited operates as a real estate development company in India with a market cap of ₹28.89 billion.

Operations: Arkade Developers generates revenue primarily from real estate development, amounting to ₹6.35 billion.

Arkade Developers, a small cap player in India's real estate sector, has shown impressive earnings growth of 141.9% over the past year, outpacing the industry’s 24.1%. Trading at 53.9% below its estimated fair value, it offers significant upside potential. The company reported net income of INR 1.23 billion for FY2024, up from INR 507.83 million in FY2023 and boasts a satisfactory net debt to equity ratio of 14.2%. Additionally, Arkade's recent IPO raised INR 4.1 billion, indicating strong market confidence and future growth prospects.

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

Godawari Power & Ispat

Simply Wall St Value Rating: ★★★★★★

Overview: Godawari Power & Ispat Limited, along with its subsidiaries, is involved in the mining of iron ores in India and has a market cap of ₹136.48 billion.

Operations: GPIL generates revenue primarily from the mining of iron ores. The company has experienced fluctuations in its net profit margin, which was reported at 12.34% in the most recent financial period.

Over the past five years, GPIL has significantly improved its financial health, reducing its debt to equity ratio from 141.1% to 1.1%. The company is trading at a favorable P/E ratio of 13.8x compared to the Indian market's 34.1x, indicating good value relative to peers and industry standards. Recent earnings growth of 42.1% outpaced the Metals and Mining sector's average of 19.3%, showcasing robust performance in a competitive landscape.