Synopsis:
3 Fundamentally strong stocks trading at up to 51% discount offer investors an opportunity to buy quality businesses below their peak valuations. Such stocks often combine robust financials, consistent earnings, and market resilience, making them attractive for long-term wealth creation.
Fundamentally strong stocks currently trading at a discount of up to 51% from their 52-week highs, presenting potential investment opportunities in Electronic Manufacturing Service (EMS), IT, and the Auto ancillary Industry stocks.
PG Electroplast Ltd
PG Electroplast Ltd., established in 2003 and headquartered in Greater Noida, is a leading Indian Electronic Manufacturing Services (EMS) provider. The company specializes in Original Design Manufacturing (ODM) and Original Equipment Manufacturing (OEM) services, catering to over 60 prominent Indian and global brands across various sectors.
With market capitalization of Rs. 15,567 cr, the shares of PG Electroplast Ltd are currently trading at Rs. 545 per share, from its previous close of Rs. 514.70 per share. The stock’s 52-week high is Rs. 1,054.20 per share, which represents a 48% discount compared to current levels.
PG Electroplast demonstrates strong financial efficiency, with a ROCE of 19.4% and ROE of 14.9%, also, compounded profit growth of 5 years stands at 93%, reflecting the company’s robust profitability and operational strength.
Newgen Software Technologies Ltd
Newgen Software Technologies Ltd is a leading provider of a unified digital transformation platform. The company specializes in intelligent process automation, content services, and omnichannel customer engagement, offering solutions that enable organizations to streamline operations and enhance customer experiences.
With market capitalization of Rs. 12,332 cr, the shares of Newgen Software Technologies Ltd are currently trading at Rs. 872 per share, from its previous close of Rs. 874.25 per share. The stock’s 52-week high is Rs. 1,798.90 per share, which represents a 51% discount compared to current levels.
The company exhibits strong financial performance with a ROCE of 28.0% and ROE of 22.5%, is nearly debt-free, and has achieved impressive profit growth, recording a 33.4% CAGR over the past five years.
Sona BLW Precision Forgings Ltd
Sona BLW Precision Forgings Ltd., commonly known as Sona Comstar, is a leading global automotive technology company specializing in the design, manufacture, and supply of precision-engineered systems and components for both electrified and non-electrified powertrains.
With market capitalization of Rs. 25,721 cr, the shares of Sona BLW Precision Forgings Ltd are currently trading at Rs. 414 per share, from its previous close of Rs. 405.25 per share. The stock’s 52-week high is Rs. 744.90 per share, which represents a 44% discount compared to current levels.
Sona BLW Precision Forgings Ltd. showcases strong financial health, with a ROCE of 17.8% and ROE of 14.4%. The company is nearly debt-free and has achieved impressive profit growth, posting a 31.5% CAGR over the past five years.
Written by Manideep Appana
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