Synposis:
Five stocks with high Piotroski scores showcase strong profitability, efficient operations, and healthy balance sheets, making them fundamentally solid firms with high financial stability and potential for sustainable growth.
The Piotroski F-Score is a financial metric developed by Stanford professor Joseph Piotroski to evaluate the financial health of companies, particularly value stocks. It assigns a score between 0 and 9 based on nine criteria derived from a company’s financial statements. Each criterion is scored as 1 if met, and 0 if not, with the total score indicating the company’s financial strength.
Below are list of defence stock with high piotroski score
National Aluminium Company Ltd
National Aluminium Company Ltd (NALCO) is a leading public-sector aluminium producer in India, known for its integrated operations spanning bauxite mining, alumina refining, and aluminium smelting.
With a Piotroski score of 9, the company demonstrates excellent financial health, strong profitability, and efficient operations, making it a fundamentally robust and reliable investment option.
The company demonstrates strong financial performance with a ROCE of 44% and ROE of 32.7%, while remaining nearly debt-free. It offers a healthy dividend yield of 4.90% and a CAGR of 108% profit growth over the last five years.
Cummins India Ltd
Cummins India Ltd primarily designs, manufactures, and sells diesel and gas engines, along with power generation systems such as generators and related components. It serves sectors like automotive, industrial, and infrastructure, providing efficient and reliable power solutions.
With a Piotroski score of 8, it demonstrates strong profitability, efficient operations, and a solid balance sheet, reflecting financial stability and consistent performance.
The company shows strong financial health with a ROCE of 36.3% and ROE of 28.2%, while significantly reducing debt and remaining debt-free. It has delivered a 22.4% CAGR profit growth over the last five years, a solid 3-year ROE track record of 26.3%.
Mamata Machinery Ltd
Mamata Machinery Ltd is a leading Indian manufacturer specializing in flexible packaging solutions. Established in 1989, the company pioneered the use of stepper motor-driven plastic bag making machines in India. Mamata has become a global player in the packaging machinery industry.
With a Piotroski score of 8, it demonstrates strong profitability, efficient operations, and a solid balance sheet, reflecting financial stability and consistent performance.
The company demonstrates strong fundamentals with a ROCE of 34.9% and ROE of 26.9%, while remaining almost debt-free. It has delivered an impressive 109% CAGR profit growth over the last five years, a solid 3-year ROE track record of 24.9%.
Fiem Industries
Fiem Industries Ltd., established in 1989 and headquartered in New Delhi, is a leading manufacturer of automotive lighting, signaling equipment, and rear-view mirrors. The company primarily serves the two-wheeler segment and has expanded its product range to include LED and conventional headlamps, tail lamps, fog lamps, and interior lamps.
With a Piotroski score of 9, it demonstrates strong profitability, efficient operations, and a solid balance sheet, reflecting financial stability and consistent performance.
The company demonstrates strong fundamentals with a ROCE of 27.80 % and ROE of 21%, while remaining almost debt-free. It has delivered an impressive 22% CAGR profit growth over the last five years, and a solid 3-year ROE track record of 20%.
Solar Industries
Founded in 1983 and based in Nagpur, Solar Industries India Ltd. is a prominent player in the industrial explosives and defense sectors. The company manufactures a comprehensive range of industrial explosives, explosive initiating devices, and defense products such as ammunition, drones, and missile systems.
With a Piotroski score of 8, it demonstrates strong profitability, efficient operations, and a solid balance sheet, reflecting financial stability and consistent performance.
The company demonstrates strong fundamentals with a ROCE of 38.10 % and ROE of 32.60 %. It has delivered an impressive 42% CAGR profit growth over the last three years and a solid 3-year ROE track record of 33%.
Written by Manideep Appana
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