Domestic benchmark indices have lost nearly 0.5% in the past five days and 2.80% in the past month amid the global financial crisis that dampened investor sentiment. The BSE Sensex was trading at 57, 656.71 points, up 0.23% as of 11:35 AM on Monday and the NSE Nifty 50 was at 16986.55 points up 0.24%.
Here are three fundamentally strong stocks below ₹ 1000:
Oil India Limited
The company is involved in the exploration, development and production of crude oil and natural gas, transportation of crude oil and production of LPG. Its shares were trading at ₹ 246.25 apiece, down 1.81%. However, its share price increased by 40.54% in the past six months and by 5.37% in the past year.
Oil India’s revenue increased by 37.67% to ₹ 10,580.55 crores in the October to December quarter of 2022 from ₹ 7685.49 crores reported in the corresponding quarter last year. Its profit increased by 114.21% to ₹ 2,799.95 crore from 1307.61 during the same period.
The company has a market capitalization of ₹ 27,197 crores and is a mid-cap company. It has an ideal return on equity of 20.73% and an ideal debt-to-equity ratio of 0.48. It has a high dividend yield of 7.78%. Oil India’s shares were trading at a price-to-earnings ratio of 2.99, which is lower than the industry P/E of 5.21, indicating that the stock is undervalued as compared to its peers.
Sonata Software
The company is engaged in the business of providing Information Technology (IT) services and solutions to clients across the world. Its shares were trading at ₹ 804.15 apiece, down 2.29%. However, its share price has increased by 56.87% in the past six months and 40.83% in the past year.
Sonata Software’s revenue increased by 21.68% to ₹ 2,260.78 crores in the October to December quarter of 2022 from ₹ 1,858.02 crores reported in the corresponding quarter last year. Its profit increased by 20.47% to ₹ 117.66 crore from ₹ 97.67 during the same period.
The company has a market capitalization of ₹ 11,404 crores and is a mid-cap company. It has a high return on equity of 37.56% and an ideal debt-to-equity ratio of 0.18. It has a dividend yield of 2.04%. Oil India’s shares were trading at a price-to-earnings ratio of 25.99, which is almost at par with the industry P/E of 26.24.
Redington Ltd.
It is a major player in distribution and supply chain solutions with 235+ International brands in IT and Mobility spaces serving 37 emerging markets. Its shares were trading at ₹ 166.35 apiece down 2.63%. Its share price increased by 16.70% in the past six months and 16.83% in the past year.
Redington’s revenue increased by 30.56% to ₹ 21,674.31 crores in the October to December quarter of 2022 from ₹ 16,600.74 crores reported in the corresponding quarter last year. However, its profit decreased by 1.08% to ₹ 392.75 crore from ₹ 397.06 during the same period.
The company has a market capitalization of ₹ 13,353 crores and is a mid-cap company. It has an ideal return on equity of 23.88% and an ideal debt-to-equity ratio of 0.30. It has a dividend yield of 3.86%. Oil India’s shares were trading at a price-to-earnings ratio of 9.34, which is lower than the industry P/E of 23.90.
Written by Simran Bafna
Disccaimer
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