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Undiscovered Gems in India to Watch This October 2024

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Over the last 7 days, the Indian market has remained flat, yet it has impressively risen by 44% over the past 12 months. As earnings are expected to grow by 17% per annum over the next few years, identifying undiscovered gems that align with this growth trajectory can be key to finding promising investment opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In India

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

All E Technologies

NA

40.78%

31.63%

★★★★★★

Suraj

27.47%

17.95%

67.29%

★★★★★★

Aeroflex Industries

0.04%

14.69%

33.38%

★★★★★★

AGI Infra

61.29%

29.16%

33.44%

★★★★★★

ELANTAS Beck India

NA

14.89%

24.83%

★★★★★★

Timex Group India

14.33%

17.75%

59.68%

★★★★★★

Om Infra

13.99%

43.36%

27.66%

★★★★★☆

Spright Agro

0.58%

83.13%

86.22%

★★★★★☆

Nibe

39.26%

80.75%

84.69%

★★★★★☆

Abans Holdings

91.77%

13.13%

18.72%

★★★★☆☆

Click here to see the full list of 475 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

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

Arkade Developers

Simply Wall St Value Rating: ★★★★★☆

Overview: Arkade Developers Limited operates as a real estate development company in India with a market cap of ₹28.16 billion.

Operations: Arkade Developers generates revenue primarily from real estate development, amounting to ₹6.35 billion. The company has a market capitalization of ₹28.16 billion.

Arkade Developers has shown impressive growth with earnings jumping 141.9% over the past year, outpacing the Real Estate industry’s 24.1%. Their net debt to equity ratio stands at a satisfactory 14.2%, and interest payments are well covered by EBIT (12.2x). Recently, Arkade completed an IPO raising INR 4.1 billion, which could bolster future projects and expansion plans. Despite high-quality earnings and trading at 55% below estimated fair value, shares remain highly illiquid.

NSEI:ARKADE Debt to Equity as at Oct 2024
NSEI:ARKADE Debt to Equity as at Oct 2024

Godawari Power & Ispat

Simply Wall St Value Rating: ★★★★★★

Overview: Godawari Power & Ispat Limited, along with its subsidiaries, operates in the mining of iron ores in India and has a market cap of ₹143.52 billion.

Operations: GPIL generates revenue primarily from the mining of iron ores. The company has a market cap of ₹143.52 billion and its financial performance includes a net profit margin that has shown significant fluctuations over recent periods.

Godawari Power & Ispat (GPIL) has shown impressive financial performance, with earnings growth of 42.1% over the past year, outpacing the Metals and Mining industry average of 19.3%. The company’s debt to equity ratio has significantly improved from 141.1% to 1.1% in five years, reflecting better financial health. GPIL's P/E ratio stands at a favorable 14.5x compared to the Indian market's 34.1x, indicating good value relative to peers and industry standards. Recent developments include a proposed alteration of share capital at their AGM on September 21, alongside a special dividend announcement of INR 1.25 per share for their anniversary celebration. Additionally, Q1 results for FY2025 reported net income rising to INR 2,865 million from INR 2,309 million year-on-year and basic EPS increasing from INR18.51 to INR22.97. The company also completed a significant buyback program repurchasing shares worth INR3 billion between June and July this year which likely signals confidence in its future prospects while maintaining robust cash flows evident by levered free cash flow figures like ₹9 billion as of September end last year