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Undiscovered Gems in India to Watch This September 2024

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Over the past 7 days, the Indian market has risen 1.6%, and over the past 12 months, it is up an impressive 44%. In this thriving environment where earnings are expected to grow by 17% per annum over the next few years, identifying undiscovered gems can offer significant potential 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

All E Technologies

NA

40.78%

31.63%

★★★★★★

Vidhi Specialty Food Ingredients

7.27%

11.00%

4.02%

★★★★★★

Yuken India

27.96%

12.35%

-44.41%

★★★★★★

ELANTAS Beck India

NA

14.89%

24.83%

★★★★★★

Timex Group India

14.33%

17.75%

59.68%

★★★★★★

Pearl Global Industries

72.24%

19.89%

41.91%

★★★★★☆

Om Infra

13.99%

43.36%

27.66%

★★★★★☆

KP Green Engineering

13.73%

47.44%

61.28%

★★★★★☆

Innovana Thinklabs

13.59%

12.51%

20.01%

★★★★☆☆

Rir Power Electronics

54.23%

16.42%

34.78%

★★★★☆☆

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

Let's explore several standout options from the results in 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 ₹28.94 billion.

Operations: Arkade Developers generates revenue primarily from real estate development projects. The company reported a market cap of ₹28.94 billion.

Arkade Developers recently completed an IPO raising INR 4.1 billion, signaling strong market interest. Over the past year, earnings surged by 142%, significantly outpacing the real estate industry's growth of 24%. Their net income for FY2024 was INR 1.23 billion compared to INR 508 million the previous year, showcasing robust financial health. With a satisfactory net debt to equity ratio of 13.8% and EBIT covering interest payments by over 53 times, Arkade's financial stability is evident despite its highly illiquid shares.

NSEI:ARKADE Earnings and Revenue Growth as at Sep 2024
NSEI:ARKADE Earnings and Revenue Growth as at Sep 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 ₹134.62 billion.

Operations: GPIL generates revenue primarily from iron ore mining. The company reported a gross profit margin of 35% in the latest fiscal year, reflecting its cost efficiency in operations.

Godawari Power & Ispat has made significant strides, notably reducing its debt to equity ratio from 141.1% to 1.1% over the past five years. The company reported earnings growth of 42.1% last year, outpacing the Metals and Mining industry's 17.8%. Trading at a price-to-earnings ratio of 13.9x, it presents good value compared to the Indian market's 34.4x average. Recent developments include a proposed share split and special dividend on its 25th anniversary, reflecting strong financial health and shareholder focus.