Fundamentally Solid Companies run successful enterprises. Companies function successfully even amid market downturns. While most stocks suffer during a stock market downturn, Fundamentally Strong Stocks hold their ground.
The price-to-book value ratio measures a company’s market to its book value. Some value investors and financial analysts regard any ratio less than 3.0 to be a good one.
Here are the Fundamentally stongs stocks with Price-to-book value of less than 2.
GR Infraprojects
The company works on road construction projects. The company has a market value of Rs. 11,649 Cr making it a small-cap company. Currently, the stocks are trading 0.3% down at Rs. 1,204.80 on NSE.
The company’s revenue grew by 12.1% YoY from Rs. 8,458.35 Cr in FY22 to Rs. 9,481.51 Cr in FY23 and for the same period, the company’s net profit increased by 74.83% from Rs. 831.91 Cr to Rs. 1,454.43 Cr.
In addition, the company’s profitability ratios showed improvement with the return on equity (ROE) increasing to 26.26% in FY23 from 18.93% in FY22, for the same period, the return on capital employed (ROCE) increased to 21.81% from 16.42% and net profit margins increased to 15.34% from 9.84%.
The Price to book value of the deceased to 1.55 in FY23 from 3.09 in FY22 and for the same period debt to equity ratio declined to 0.91% from 1.09%.
As per the latest shareholding data, Promoters hold 79.74%, DIIs hold 16.14%, FIIs hold 0.59% and the public hold a 3.53% stake in the company.
Nava Ltd
It is a multinational company, operating in India, South East, Asia and Africa. It manufactures ferro alloys which are utilized by the steel industries. With a market capitalisation of Rs. 6,400 Cr, the company belongs to the small-cap category. Currently, the stock are trading 0.12% up at Rs. 441.10 on NSE.
The company’s revenue grew by 5.3% YoY from Rs. 3,347.66 Cr in FY22 to Rs. 3,528.15 Cr in FY23 and for the same period, the company’s net profit increased by 79.19% from Rs. 517.7 Cr to Rs. 79.19 Cr.
In addition, the company’s profitability ratios showed improvement with the return on equity (ROE) increasing to 22.23% in FY23 from 12.08% in FY22, for the same period, the return on capital employed (ROCE) increased to 18.85% from 15.03% and net profit margins increased to 34.58% from 16.9%.
In FY23, The Price to book value of the company stood at 0.53 and debt to equity ratio stood at 0.51%.
As per the latest shareholding data, Promoters hold 48.83%, DIIs hold 0.33%, FIIs hold 8.89% and the public hold a 41.95% stake in the company.
Rain Industries
The company engages in the production of cement and other related products. The company has a market capitalisation of Rs. 5,667 Cr classifying it as a small-cap company. Currently, the company shares are trading 0.33% down at Rs. 168.50 on NSE.
The company follows January to December as a financial year.
The company’s revenue grew by 44.64% YoY from Rs. 14,526.78 Cr in FY21 to Rs. 21,011 Cr in FY22 and for the same period, the company’s net profit increased by 147.97% from Rs. 580.16 Cr to Rs. 1,438.65 Cr.
In addition, the company’s profitability ratios showed improvement with the return on equity (ROE) increasing to 21.7% in FY22 from 11.91% in FY21, for the same period, the return on capital employed (ROCE) increased to 17.93% from 12.3% and net profit margins increased to 7.42% from 4.68%.
In FY22, The Price to book value of the company stood at 0.68 and debt to equity ratio stood at 1.09%.
As of September 2023, Promoters hold 41.14%, DIIs hold 0.60%, FIIs hold 16.32% and the public hold a 41.94% stake in the company.
Written by Sheshadri N
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