After the recent correction in the Indian stock market, identifying fundamentally strong stocks that are trading at a discount presents an enticing opportunity for savvy investors. These established companies often boast solid financial health, consistent revenue growth, and robust management teams, yet may be undervalued due to market fluctuations or temporary setbacks.
As a smart investor,one needs to capture these opportunities to optimize their portfolios, focusing on these discounted stocks can offer the potential for significant returns over a longer horizon. By capitalizing on market inefficiencies, investors can strategically position themselves to benefit from the eventual market correction that recognizes the true value of these resilient companies.
Some of the fundamentally strong stocks trading at a discount are listed below:
ACC Ltd
It is a prominent player in the Indian cement industry, renowned for its high-quality products and wide distribution network. The stock is currently trading at Rs. 2,063, down 27.46% from its all-time high of Rs. 2,844, with a market capitalization of Rs. 39,623 crores. The company boasts a P/E ratio of 21.43 and an impressive ROCE of 17.27%. With a promoter holding of 56.69%, ACC has experienced steady growth, with a 5-year sales growth of 41.51% and profit growth of 7.24%. This positions ACC as a leading and resilient cement company in India.
Britannia Industries Ltd
It is a major player in India’s packaged food sector, known for its popular products such as biscuits, dairy, and snacks. The stock is currently trading at Rs. 4,698, down 27.39% from its all-time high of Rs. 6,470, with a market capitalization of Rs. 1,14,481 crores. The company has a P/E ratio of 53.33 and an outstanding ROCE of 48.92%. Britannia has a promoter holding of 50.55%, demonstrating strong investor confidence. Over the past five years, the company has achieved a remarkable 53.64% sales growth and 13.09% profit growth, reinforcing its dominance in the Indian food industry.
Hero MotoCorp Ltd
It is India’s leading motorcycle manufacturer, offering a wide range of two-wheelers catering to various customer segments. The stock is currently trading at Rs. 4,340, down 30.52% from its all-time high of Rs. 6,246, with a market capitalization of Rs. 87,801 crores. Hero MotoCorp commands a P/E ratio of 21.30 and an ROCE of 29.09%. With a promoter holding of 34.75%, the company has seen consistent growth, including a 46.29% increase in sales over the last five years. Profit growth has been modest at 2.39%, but Hero remains a dominant force in India’s motorcycle market.
Rail Vikas Nigam Ltd (RVNL)
It is a key player in the Indian infrastructure and railway sector, focusing on railway construction and modernization projects. The stock is currently trading at Rs. 433, down 33.08% from its all-time high of Rs. 647, with a market capitalization of Rs. 92,085 crores. RVNL boasts a P/E ratio of 71.99 and a strong ROCE of 18.7%. With a high promoter holding of 72.84%, the company has shown impressive growth, including a 26% increase in sales and 19.64% profit growth over the last five years. RVNL is well-positioned to benefit from India’s growing infrastructure investment.
Written By: Dipangshu Kundu
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