Undiscovered Gems In India 3 Small Cap Stocks With Strong Potential

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The Indian market has been flat in the last week but is up 42% over the past year, with earnings forecast to grow by 17% annually. In this dynamic environment, identifying small-cap stocks with strong potential can uncover hidden opportunities for growth.

Top 10 Undiscovered Gems With Strong Fundamentals In India

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Wealth First Portfolio Managers

NA

-47.95%

40.47%

★★★★★★

ELANTAS Beck India

NA

14.89%

24.83%

★★★★★★

Knowledge Marine & Engineering Works

35.48%

42.61%

42.95%

★★★★★★

Timex Group India

14.33%

17.75%

59.68%

★★★★★★

Indo Amines

82.32%

17.15%

19.98%

★★★★★☆

Gallantt Ispat

18.85%

37.56%

37.26%

★★★★★☆

Master Trust

37.05%

27.64%

41.99%

★★★★★☆

Nibe

39.26%

80.75%

84.69%

★★★★★☆

Genesys International

12.13%

15.75%

36.33%

★★★★★☆

Lotus Chocolate

13.51%

28.10%

-6.06%

★★★★★☆

Click here to see the full list of 471 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

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

Action Construction Equipment

Simply Wall St Value Rating: ★★★★★★

Overview: Action Construction Equipment Limited manufactures and sells material handling and construction equipment primarily in India, with a market cap of ₹157.85 billion.

Operations: Action Construction Equipment Limited generates revenue primarily from its material handling and construction equipment segments, with additional income from agriculture equipment amounting to ₹2.05 billion. Segment adjustments contribute ₹27.92 million to the overall revenue figures.

Earnings for Action Construction Equipment (ACE) grew by 76.2% over the past year, significantly outpacing the Machinery industry’s 25.1%. The company's debt to equity ratio has improved from 18.5% to 0.4% in five years, and EBIT covers interest payments 14.4 times over, indicating strong financial health. Recent highlights include a Q1 net income of INR 841.8 million and a substantial order from the Ministry of Defence for special forklifts and cranes, showcasing robust demand and strategic growth initiatives aligned with national programs like Make in India.

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

LT Foods

Simply Wall St Value Rating: ★★★★★★

Overview: LT Foods Limited engages in the milling, processing, and marketing of branded and non-branded basmati rice and rice food products in India with a market cap of ₹148.12 billion.

Operations: The primary revenue stream for LT Foods Limited is the manufacture and storage of rice, generating ₹81.21 billion. The company's net profit margin is %.