The Domestic indices suffered huge losses on Wednesday dragging the Nifty 50 below 17,560 and Sensex below 59,750. On Thursday, the benchmark opened flat. The NSE Nifty 50 fell 7.25 points or 0.04% to 17,547.05 and BSE Sensex dipped 21.03 points or 0.04% to 59,723.95.
As markets face turmoil, here are 3 fundamentally sound stocks trading at a discount of more than 40%:
Gujarat Narmada Valley Fertilizers & Chemicals Limited
The shares of the Indian manufacturer of fertilizers and chemicals declined and were trading at Rs 530 levels on Thursday’s session. In the past six months, the stock has shed more than 27 percent. The stock has been declining after hitting a 52-week high of Rs 912 in April 2022. Currently, it is trading 41 percent away from those levels.
Gujarat Narmada Valley Fertilisers & Chemicals (GNFC) is an Indian manufacturer of fertilizers and Chemicals. It operates its businesses mainly in Industrial Chemicals, Fertilisers apart from having a small presence of IT services.
In Q3FY23, the company reported a total revenue of Rs 2,673 Crore which increased YoY from Rs 2,380.33 Crore. Their net profits in the period stood at Rs 324 Crore compared to Rs 538.32 Crore in the same period the Year ago.
The debt-free company has a market capitalization of Rs 8,515 Crore and a dividend yield of 1.18%. The company also remains undervalued in the market as the TTM PE of the stock is 4.67 while the Sector PE is at 12.74.
Dixon Technologies (India) Limited
The shares of the electronics manufacturing services company were trading at Rs 2,659 levels on Thursday. In the past six months, the stock has dived by more than 34 percent. It is currently trading at a discount of more than 43 percent from its 52-week high of Rs 4,690.
Dixon Technologies is an Indian multinational electronics manufacturing services company. It is a contract manufacturer of televisions, washing machines, and security systems among others for brands such as Samsung, Xiaomi, Panasonic, and Philips
In the third quarter of FY23, their total revenue stood at Rs 2,404.72 Crore, which declined YoY from Rs 3,073.25 Crore. Their profits however increased to Rs 51.2 Crore, up from Rs 46.38 Crore in Q3FY22.
The company has a debt-to-equity ratio of 0.46 indicating low debt on its balance sheet and a market capitalization of Rs 15,748 Crore. The stock’s TTM PE is at 66.22 while the industry average is 83.51, meaning an undervaluation.
Deepak Fertilisers And Petrochemicals Corporation Limited
The second Fertilizer stock on the list is Deepak Fertilisers And Petrochemicals which saw its share trade marginally higher at Rs 630 levels. In the past six months, it has shed approximately 36 percent and from its 52-week high of Rs 1,062 in October 2022, it is trading 40 percent further.
Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL) is an Indian manufacturer of industrial and agricultural chemicals, crop nutrients, and fertilizers. In fact, it is one of the largest manufacturers of chemicals in India.
In the Q3 of FY23, their total revenue stood at Rs 2,754.76 Crore which increased from Rs 1,955.7 Crores, YoY. Their net profit in the period stood at Rs 252.26 Crore compared to Rs 180.61 Crore in Q3FY22.
The company has a market capitalization of Rs 7,910 Crore and a dividend yield of 1.44%. The undervalued stock has a TTM PE of 6.41 while the Sector PE is at 12.74. Its debt-to-equity ratio stands at 0.67.
Written by Anoushka Roy
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