Exploring 3 Undiscovered Gems in India's Stock Market

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Over the last seven days, India's stock market has seen a 3.2% decline, yet it remains up by an impressive 40% over the past year with earnings projected to grow by 17% annually in the coming years. In such dynamic conditions, identifying stocks that possess strong fundamentals and growth potential can offer significant opportunities for investors seeking undiscovered gems.

Top 10 Undiscovered Gems With Strong Fundamentals In India

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Wealth First Portfolio Managers

NA

-47.96%

40.47%

★★★★★★

NGL Fine-Chem

12.95%

15.22%

8.68%

★★★★★★

AGI Infra

61.29%

29.16%

33.44%

★★★★★★

ELANTAS Beck India

NA

14.89%

24.83%

★★★★★★

Timex Group India

14.33%

17.75%

59.68%

★★★★★★

TCPL Packaging

95.84%

15.51%

31.89%

★★★★★☆

Macpower CNC Machines

0.40%

22.04%

31.09%

★★★★★☆

Nibe

39.26%

80.75%

84.69%

★★★★★☆

BLS E-Services

1.67%

15.04%

51.58%

★★★★★☆

Abans Holdings

91.77%

13.13%

18.72%

★★★★☆☆

Click here to see the full list of 468 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

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

Jaiprakash Power Ventures

Simply Wall St Value Rating: ★★★★★☆

Overview: Jaiprakash Power Ventures Limited operates in the power generation and cement grinding sectors both in India and abroad, with a market capitalization of ₹151.67 billion.

Operations: JP Power derives its revenue primarily from the power segment, contributing ₹61.68 billion, and coal sales amounting to ₹6.59 billion. The company experiences a segment adjustment of ₹6.42 billion in its financials.

JPPOWER, a player in India's energy sector, has seen remarkable earnings growth of 22,969% over the past year, outpacing the industry's 12%. Trading at 63.6% below its estimated fair value suggests potential undervaluation. The company's debt to equity ratio improved significantly from 254.1% to 37% over five years, indicating better financial health. However, a one-off loss of ₹6.9 billion impacted recent results, though interest payments remain well covered with EBIT at 5.2x coverage.

NSEI:JPPOWER Debt to Equity as at Oct 2024
NSEI:JPPOWER Debt to Equity as at Oct 2024

KRN Heat Exchanger and Refrigeration

Simply Wall St Value Rating: ★★★★☆☆

Overview: KRN Heat Exchanger and Refrigeration Limited specializes in the manufacturing and sale of aluminium and copper fin and tube-type heat exchangers for the HVACR industry, with a market capitalization of ₹28.54 billion.

Operations: KRN's primary revenue stream is from the manufacture and sale of HVAC parts and accessories, generating ₹3.08 billion. The company's financial performance can be analyzed through its gross profit margin, which provides insights into its production efficiency and cost management.