3 Undiscovered Gems in India with Strong Potential

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The Indian market has gained 1.7% recently and is up 41% over the last 12 months, with earnings expected to grow by 17% per annum over the next few years. In this thriving environment, identifying stocks with strong fundamentals and growth potential can offer significant opportunities for investors.

Top 10 Undiscovered Gems With Strong Fundamentals In India

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Bharat Rasayan

8.15%

0.10%

-7.93%

★★★★★★

Pearl Global Industries

72.24%

19.89%

41.91%

★★★★★☆

Indo Amines

82.32%

17.15%

19.98%

★★★★★☆

S J Logistics (India)

11.71%

90.19%

60.29%

★★★★★☆

Lotus Chocolate

13.51%

28.10%

-6.06%

★★★★★☆

KP Green Engineering

13.73%

47.44%

61.28%

★★★★★☆

Monarch Networth Capital

32.66%

31.02%

50.24%

★★★★☆☆

Sanstar

50.30%

-8.41%

48.59%

★★★★☆☆

Basilic Fly Studio

1.96%

55.35%

81.67%

★★★★☆☆

Rir Power Electronics

54.23%

16.42%

34.78%

★★★★☆☆

Click here to see the full list of 490 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

Let's explore several standout options from the results in the screener.

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, with a market cap of ?151.02 billion.

Operations: The company generates revenue primarily from the manufacture and storage of rice, amounting to ?81.21 billion.

LT Foods, a notable player in the rice market, has demonstrated impressive financial health with a net debt to equity ratio of 25.3%, which is satisfactory. The company’s earnings grew by 35.7% over the past year, outpacing the food industry’s growth rate of 16.7%. Trading at a price-to-earnings ratio of 24.7x, it offers good value compared to peers and the Indian market average (34.4x). Additionally, LT Foods reported Q1 FY2025 sales of INR 20.71 billion and net income of INR 1.55 billion, reflecting robust performance despite recent regulatory challenges and fines potentially impacting operations minimally (up to INR100k).

NSEI:LTFOODS Debt to Equity as at Sep 2024
NSEI:LTFOODS Debt to Equity as at Sep 2024

Marksans Pharma

Simply Wall St Value Rating: ★★★★★★

Overview: Marksans Pharma Limited, along with its subsidiaries, focuses on the research, manufacturing, marketing, and sale of pharmaceutical formulations across various international markets including the United States, North America, Europe, the United Kingdom, Australia, and New Zealand; it has a market cap of ?132.32 billion.

Operations: Marksans Pharma generates its revenue primarily from the sale of pharmaceutical formulations, amounting to ?22.68 billion. The company's operations span multiple international markets including the United States, North America, Europe, the United Kingdom, Australia, and New Zealand.