Unveiling 3 Undiscovered Gems in India with Strong Fundamentals

In This Article:

Over the last 7 days, the Indian market has remained flat, but it is up 42% over the past year with earnings forecasted to grow by 17% annually. In this dynamic environment, identifying stocks with strong fundamentals can be crucial for long-term success.

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%

★★★★★★

Bharat Rasayan

8.15%

0.10%

-7.93%

★★★★★★

Indo Amines

82.32%

17.15%

20.00%

★★★★★☆

Pearl Global Industries

72.24%

19.89%

41.91%

★★★★★☆

Om Infra

13.99%

43.36%

27.64%

★★★★★☆

Indo Tech Transformers

2.30%

22.04%

60.31%

★★★★★☆

Master Trust

37.05%

27.57%

41.99%

★★★★★☆

Ingersoll-Rand (India)

1.05%

14.88%

27.54%

★★★★★☆

Lotus Chocolate

13.51%

28.07%

-10.66%

★★★★★☆

Sanstar

50.30%

-8.41%

48.59%

★★★★☆☆

Click here to see the full list of 473 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

We're going to check out a few of the best picks from our screener tool.

IIFL Securities

Simply Wall St Value Rating: ★★★★☆☆

Overview: IIFL Securities Limited offers capital market services in India's primary and secondary markets with a market cap of ₹98.80 billion.

Operations: IIFL Securities Limited generates revenue primarily from capital market activities (₹20.25 billion) and insurance broking and ancillary services (₹2.77 billion), with additional income from facilities and ancillary services (₹375.25 million).

IIFL Securities, a promising player in India's capital markets, reported impressive earnings growth of 120.4% over the past year, outpacing the industry average of 63.6%. The company's net debt to equity ratio stands at a satisfactory 35.5%, reflecting prudent financial management as it reduced from 117.6% five years ago. Despite recent volatility in its share price, IIFLSEC's P/E ratio of 16.8x remains attractive compared to the broader Indian market's 34.5x.

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

LT Foods

Simply Wall St Value Rating: ★★★★★★

Overview: LT Foods Limited engages in the milling, processing, and marketing of branded and non-branded basmati rice and rice food products in India and internationally, with a market cap of ₹144.60 billion.

Operations: The primary revenue stream for LT Foods Limited is the manufacture and storage of rice, generating ₹81.21 billion. The company focuses on both branded and non-branded basmati rice products in domestic and international markets.

LT Foods shows promising potential with a net debt to equity ratio of 25.3%, reflecting prudent financial management. Earnings surged by 35.7% last year, outpacing the food industry’s 15% growth, and are expected to rise by another 10.53% annually. Trading at a P/E ratio of 23.7x, it offers good value compared to the Indian market's average of 34.5x, while its EBIT covers interest payments tenfold (10.8x coverage).