In the past year, the Indian stock market has shown remarkable resilience with a 43% increase, despite a recent 2.0% drop over the last week. In this context of robust annual earnings growth forecasted at 16%, identifying stocks that have not yet caught the attention of mainstream investors could offer unique opportunities for those looking to diversify their portfolios.
Top 10 Undiscovered Gems With Strong Fundamentals In India
Overview: Network People Services Technologies Limited specializes in creating digital payment solutions for banks, financial institutions, and merchants within the fintech sector in India, with a market capitalization of ?46.44 billion.
Operations: The company generates its revenue primarily through the sale of goods and services, evidenced by a consistent increase in gross profit from ?90.50 million in 2018 to ?660.98 million by mid-2024, reflecting an upward trend in efficiency and market reach. Despite fluctuations, the net income has also shown significant growth from ?12.45 million to ?371.89 million over the same period, underlining robust operational management and possibly improved cost efficiencies or market expansion strategies.
Network People Services Technologies (NPST), a rising star in India's financial sector, reported a remarkable earnings growth of 222.5% over the past year, surpassing the industry average of 21.3%. With more cash than debt and interest payments covered 2279 times by EBIT, NPST demonstrates robust financial health. Recent developments include securing a significant contract to provide mobile banking solutions to rural banks, enhancing digital accessibility and driving future growth prospects.
Overview: Orchid Pharma Limited is a pharmaceutical company based in India, specializing in the development, manufacture, and marketing of active pharmaceutical ingredients, bulk actives, finished dosage formulations, and nutraceuticals, with a market capitalization of ?69.78 billion.
Operations: Orchid Pharma generates its revenue primarily through the pharmaceuticals sector, with recent figures showing a revenue of ?8.19 billion. The company's operations involve significant costs related to goods sold and operating expenses, impacting profitability metrics such as the net income margin which recently stood at approximately 11.25%.
Orchid Pharma, a rising star in India's pharmaceutical landscape, has demonstrated robust performance with a 73.6% earnings growth over the past year, outpacing the industry's 17%. The company boasts high-quality earnings and is well-positioned financially with more cash than debt. Recent strategic partnerships for distributing new drugs underline its commitment to addressing critical healthcare needs, reinforcing its potential as an undiscovered gem in the market.
Overview: Techno Electric & Engineering Company Limited specializes in engineering, procurement, and construction services for the power generation, transmission, and distribution sectors in India, with a market capitalization of ?166.06 billion.
Operations: The company primarily operates in the Engineering, Procurement, and Construction (EPC) sector, generating ?14.92 billion from this segment. It also earns revenue from other business activities amounting to ?104.38 million.
Techno Electric & Engineering's recent performance showcases significant growth, with earnings surging by 180.5% over the past year, outpacing the construction industry's 36.5% growth. The company is debt-free, a notable improvement from a debt-to-equity ratio of 3.1 five years ago. Forecasted to grow earnings by 27.48% annually, Techno Electric also benefits from high non-cash earnings levels, indicating robust underlying financial health despite a volatile share price recently.
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:NPST NSEI:ORCHPHARMA and NSEI:TECHNOE.
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