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Undiscovered Gems In India Featuring 3 Promising Small Caps

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Over the last 7 days, the Indian market has dropped 1.0%, but it is up 39% over the past year with earnings forecasted to grow by 17% annually. In this dynamic environment, identifying promising small-cap stocks can be a strategic move for investors seeking growth opportunities in lesser-known segments of the market.

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%

★★★★★★

Goldiam International

0.74%

10.79%

15.85%

★★★★★★

Indo Amines

82.32%

17.15%

19.98%

★★★★★☆

Force Motors

23.24%

21.52%

44.24%

★★★★★☆

TCPL Packaging

95.84%

15.51%

31.89%

★★★★★☆

Master Trust

37.05%

27.64%

41.99%

★★★★★☆

S J Logistics (India)

11.71%

90.19%

60.29%

★★★★★☆

Magadh Sugar & Energy

85.44%

6.65%

13.60%

★★★★☆☆

Sanstar

50.30%

-8.41%

48.59%

★★★★☆☆

Vasa Denticity

0.11%

38.37%

48.77%

★★★★☆☆

Click here to see the full list of 479 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

We're going to check out a few of the best picks from our screener tool.

IIFL Securities

Simply Wall St Value Rating: ★★★★☆☆

Overview: IIFL Securities Limited offers capital market services in India's primary and secondary markets, with a market cap of ₹98.09 billion.

Operations: IIFL Securities generates revenue primarily from capital market activities (₹20.25 billion) and insurance broking and ancillary services (₹2.77 billion). Additional income comes from facilities and ancillary services, contributing ₹375.25 million.

IIFL Securities, a notable player in India's capital markets, has seen its earnings grow by 120.4% over the past year, outpacing the industry average of 60.3%. With a price-to-earnings ratio of 15.8x, it is attractively valued compared to the broader Indian market at 34.4x. The company’s net debt to equity ratio stands at a satisfactory 35.5%, down from 117.6% five years ago, indicating improved financial health despite recent regulatory challenges and penalties totaling INR 300,000 (US$3K).

NSEI:IIFLSEC Debt to Equity as at Sep 2024
NSEI:IIFLSEC Debt to Equity as at Sep 2024

Marksans Pharma

Simply Wall St Value Rating: ★★★★★★

Overview: Marksans Pharma Limited, along with its subsidiaries, focuses on the research, manufacturing, marketing, and sale of pharmaceutical formulations across various international markets including the United States, North America, Europe, the United Kingdom, Australia, and New Zealand with a market cap of ₹119.22 billion.

Operations: Marksans Pharma generates revenue primarily from its pharmaceutical formulations segment, which reported ₹22.68 billion in revenue. The company's net profit margin is %.