Undiscovered Gems in India to Watch This August 2024

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The Indian market has shown impressive strength, climbing by 2.6% over the past week and 44% over the last year, with every sector experiencing gains. In such a robust environment where earnings are forecast to grow by 17% annually, identifying undiscovered gems that offer strong growth potential can be particularly rewarding for investors.

Top 10 Undiscovered Gems With Strong Fundamentals In India

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

NGL Fine-Chem

12.95%

15.22%

8.68%

★★★★★★

Knowledge Marine & Engineering Works

35.48%

46.55%

46.96%

★★★★★★

AGI Infra

61.29%

29.12%

33.44%

★★★★★★

Network People Services Technologies

0.24%

81.82%

86.36%

★★★★★☆

Genesys International

12.13%

15.75%

36.33%

★★★★★☆

JSW Holdings

NA

21.35%

22.41%

★★★★★☆

Apollo Micro Systems

38.51%

10.59%

11.93%

★★★★☆☆

SG Mart

16.77%

98.09%

96.54%

★★★★☆☆

Vasa Denticity

0.11%

38.37%

48.77%

★★★★☆☆

Abans Holdings

91.77%

13.13%

18.72%

★★★★☆☆

Click here to see the full list of 463 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

Let's uncover some gems from our specialized screener.

IIFL Securities

Simply Wall St Value Rating: ★★★★☆☆

Overview: IIFL Securities Limited offers capital market services in India's primary and secondary markets and has a market cap of ₹78.48 billion.

Operations: IIFL Securities generates revenue primarily from capital market activities (₹20.25 billion) and insurance broking and ancillary services (₹2.77 billion). It also earns a smaller portion from facilities and ancillary services (₹375.25 million).

IIFL Securities has shown impressive earnings growth of 120.4% over the past year, outpacing the Capital Markets industry’s 64%. The debt to equity ratio improved significantly from 117.6% to 67.2% in five years, with a satisfactory net debt to equity ratio of 35.5%. Despite high volatility in its share price recently, IIFLSEC offers good value with a P/E ratio of 12.7x compared to the Indian market's 33.1x and reported revenue for Q1 FY2025 at INR 6.44 billion (US$77 million).

NSEI:IIFLSEC Earnings and Revenue Growth as at Aug 2024
NSEI:IIFLSEC Earnings and Revenue Growth as at Aug 2024

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 ₹141.23 billion.

Operations: The primary revenue stream for Netweb Technologies India Limited comes from the manufacturing and sale of computer servers, generating ₹8.14 billion.

Netweb Technologies India has shown remarkable growth, with earnings increasing by 85.8% over the past year, outpacing the Tech industry’s 10.2%. The company's debt to equity ratio significantly reduced from 108% to 2.3% in five years, indicating a stronger balance sheet. Recent quarterly results reported sales of ₹1.49 billion and net income of ₹154 million compared to last year's ₹598 million and ₹51 million respectively. Their new server range aligns with India's Make-in-India initiative, enhancing their market position in high-performance computing environments.