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The Indian market has shown impressive performance, climbing by 3.7% over the past week and rising 45% in the last 12 months, with earnings expected to grow by 17% per annum in the coming years. In such a dynamic environment, identifying promising small-cap stocks can offer significant opportunities for investors seeking growth potential.

Top 10 Undiscovered Gems With Strong Fundamentals In India

Click here to see the full list of 467 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

IIFL Securities

Simply Wall St Value Rating: ★★★★☆☆

Overview: IIFL Securities Limited offers a range of capital market services in the primary and secondary markets in India, with a market cap of ₹80.27 billion.

Operations: IIFL Securities generates revenue primarily from capital market activities (₹20.25 billion) and insurance broking and ancillary services (₹2.77 billion).

IIFL Securities, a small-cap financial firm, has shown remarkable earnings growth of 120.4% over the past year, surpassing the industry average of 64%. The company's debt to equity ratio improved from 117.6% to 67.2% in five years, and its net debt to equity ratio stands at a satisfactory 35.5%. Recent earnings reported revenue of ₹6.44 billion (US$77 million) and net income of ₹1.82 billion (US$22 million), highlighting strong performance despite a volatile share price recently.

• Click here to discover the nuances of IIFL Securities with our detailed analytical health report.

• Gain insights into IIFL Securities' past trends and performance with our Past report.

Netweb Technologies India

Simply Wall St Value Rating: ★★★★★★

Overview: Netweb Technologies India Limited designs, manufactures, and sells high-end computing solutions (HCS) in India with a market cap of ₹140.21 billion.

Operations: Netweb Technologies India Limited generates revenue primarily from the manufacturing and sale of computer servers, amounting to ₹8.14 billion. The company's net profit margin stands at 15%.

Netweb Technologies India has shown impressive growth, with earnings rising by 85.8% in the past year, significantly outpacing the Tech industry’s 10.2%. The company reported Q1 2025 revenue of ₹1.53 billion, a notable increase from ₹602 million a year ago. Net income surged to ₹154 million compared to ₹51 million previously. Additionally, their debt-to-equity ratio has improved dramatically from 108% to just 2.3% over five years, indicating robust financial health and strategic debt management.

• Navigate through the intricacies of Netweb Technologies India with our comprehensive health report here.

• Review our historical performance report to gain insights into Netweb Technologies India's's past performance.

Raymond

Simply Wall St Value Rating: ★★★★☆☆

Overview: Raymond Limited operates as a textile, lifestyle, and branded apparel company in India and internationally with a market cap of ₹134.79 billion.

Operations: Raymond generates revenue primarily from its Auto Components segment, which contributes ₹4.42 billion, and Tools & Hardware segment, contributing ₹4.09 billion. Another significant revenue stream is Real Estate and Development of Property at ₹18.47 billion.

Raymond has seen robust earnings growth of 60.1% annually over the past five years, though recent figures show a net debt to equity ratio at 55.5%. The company's debt to equity ratio has improved from 121.2% to 82.7%, and its interest payments are well covered by EBIT at 3.7x coverage. Despite significant insider selling and high share price volatility in the last three months, Raymond reported impressive Q1 results with net income reaching ₹73,664 million compared to ₹10,653 million a year ago.

• Dive into the specifics of Raymond here with our thorough health report.

• Explore historical data to track Raymond's performance over time in our Past section.

Summing It All Up

• Delve into our full catalog of 467 Indian Undiscovered Gems With Strong Fundamentals here.

• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.

• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Interested In Other Possibilities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NSEI:IIFLSEC NSEI:NETWEB and NSEI:RAYMOND.

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