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Undiscovered Gems In India Three Small Caps With Promising Potential

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Over the last 7 days, the Indian market has dropped 1.7%, yet it remains up 43% over the past year with earnings forecast to grow by 17% annually. In this dynamic environment, identifying small-cap stocks with strong fundamentals and growth potential can be particularly rewarding for investors looking to capitalize on emerging opportunities.

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%

★★★★★★

Vidhi Specialty Food Ingredients

7.27%

11.00%

4.02%

★★★★★★

AGI Infra

61.29%

29.69%

35.60%

★★★★★★

Kokuyo Camlin

27.11%

23.20%

75.70%

★★★★★★

ELANTAS Beck India

NA

14.89%

24.83%

★★★★★★

NGL Fine-Chem

12.95%

15.70%

9.76%

★★★★★★

Nibe

33.91%

81.20%

80.04%

★★★★★☆

JSW Holdings

NA

21.35%

22.41%

★★★★★☆

Kalyani Investment

NA

21.42%

6.35%

★★★★★☆

Innovana Thinklabs

4.53%

12.52%

19.93%

★★★★☆☆

Click here to see the full list of 457 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

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

Bharat Rasayan

Simply Wall St Value Rating: ★★★★★★

Overview: Bharat Rasayan Limited manufactures and sells technical grade pesticides and intermediates in India, with a market cap of ₹53.25 billion.

Operations: Bharat Rasayan generates revenue primarily from the sale of technical grade pesticides and intermediates. The company has a market cap of ₹53.25 billion.

Bharat Rasayan, a notable player in the chemicals sector, has shown impressive earnings growth of 39.9% over the past year, significantly outpacing the industry average of 7.6%. The company's debt to equity ratio has improved remarkably from 60.4% to 8.1% over five years, indicating strong financial health. Recent earnings for Q1 FY2025 reported sales at ₹2.82 billion and net income at ₹431 million compared to ₹70 million a year ago, reflecting substantial growth in profitability and operational efficiency.

NSEI:BHARATRAS Debt to Equity as at Aug 2024
NSEI:BHARATRAS Debt to Equity as at Aug 2024

BLS International Services

Simply Wall St Value Rating: ★★★★★★

Overview: BLS International Services Limited specializes in outsourcing and administrative tasks for visa, passport, and consular services to various diplomatic missions, with a market cap of ₹160.45 billion.

Operations: BLS International Services Limited generates revenue primarily from Visa and Consular Services (₹14.71 billion) and Digital Services (₹3.34 billion).

BLS International Services has shown impressive earnings growth of 49.8% over the past year, surpassing the industry average of 10.4%. The company’s debt to equity ratio decreased from 7.8% to 2.1% over five years, indicating improved financial health. Recent Q1 results reported revenue of INR 5.10 billion and net income of INR 1.14 billion, up from INR 3.91 billion and INR 689 million respectively a year ago, reflecting strong operational performance and profitability trends in the professional services sector.