Over the last 7 days, the Indian market has experienced a 4.7% decline, yet it has shown remarkable resilience with a 39% rise over the past year and an annual earnings growth forecast of 17%. In this dynamic environment, identifying stocks with strong fundamentals and growth potential can be key to uncovering undiscovered gems in India.

Top 10 Undiscovered Gems With Strong Fundamentals In India

Click here to see the full list of 468 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.

Anup Engineering

Simply Wall St Value Rating: ★★★★★☆

Overview: The Anup Engineering Limited, along with its subsidiaries, specializes in manufacturing and fabricating process equipment for diverse industries such as oil and gas, petrochemicals, LNG, fertilizers, chemicals, pharmaceuticals, power, water, paper and pulp, and aerospace in India with a market cap of ₹56.17 billion.

Operations: The primary revenue stream for Anup Engineering comes from its engineering products, generating ₹5.71 billion.

Anup Engineering, a notable player in the machinery sector, has seen its earnings grow by 68% over the past year, outpacing the industry average of 25.8%. The company recently secured orders worth over ₹1 billion from a European EPC contractor for projects in the UAE. With a debt-to-equity ratio rising from 2.6 to 3.9 over five years, Anup holds more cash than total debt and maintains positive free cash flow of ₹1.26 billion as of March 2024.

• Click here and access our complete health analysis report to understand the dynamics of Anup Engineering.

• Evaluate Anup Engineering's historical performance by accessing our past performance report.

KRN Heat Exchanger and Refrigeration

Simply Wall St Value Rating: ★★★★☆☆

Overview: KRN Heat Exchanger and Refrigeration Limited specializes in the production and sale of aluminium and copper fin and tube-type heat exchangers for the HVACR industry, with a market cap of ₹26.30 billion.

Operations: KRN derives its revenue primarily from the manufacture and sale of HVAC parts and accessories, amounting to ₹3.08 billion.

KRN Heat Exchanger and Refrigeration, a burgeoning player in the industrial sector, recently completed an IPO worth INR 3.42 billion to fund a new manufacturing facility, reducing promoter holdings from 94% to 71%. The company reported sales of INR 3.08 billion for the year ending March 2024, up from INR 2.47 billion previously. With earnings per share rising to INR 8.69 from INR 7.34, KRN shows robust growth potential despite its illiquid shares and satisfactory net debt-to-equity ratio of 37.5%.

• Navigate through the intricacies of KRN Heat Exchanger and Refrigeration with our comprehensive health report here.

• Review our historical performance report to gain insights into KRN Heat Exchanger and Refrigeration's's past performance.

Ujaas Energy

Simply Wall St Value Rating: ★★★★★☆

Overview: Ujaas Energy Limited is involved in the generation of solar power in India and has a market capitalization of ₹84.41 billion.

Operations: Ujaas Energy derives its revenue primarily from solar power plant operations, contributing ₹307.70 million. The company also earns from electric vehicle (EV) segments with a revenue of ₹41.00 million.

Ujaas Energy, a small player in the renewable sector, recently turned profitable with a net income of ₹38.15 million for Q1 2024 compared to a loss of ₹58.57 million last year. Despite this positive shift, it faces challenges like substantial shareholder dilution over the past year and high illiquidity in shares. The company's net debt to equity ratio improved significantly from 59.4% to 20.8% over five years, indicating better financial management despite ongoing revenue hurdles at ₹258 million annually.

• Click here to discover the nuances of Ujaas Energy with our detailed analytical health report.

• Assess Ujaas Energy's past performance with our detailed historical performance reports.

Summing It All Up

• Embark on your investment journey to our 468 Indian Undiscovered Gems With Strong Fundamentals selection here.

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Want To Explore Some Alternatives?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NSEI:ANUP NSEI:KRN and NSEI:UEL.

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