Piotroski score, named after Stanford accounting professor Joseph Piotroski, is a number between ‘0’ and ‘9’ that is used to assess the strength of a company’s financial position. The score is used by financial investors to find the best-value stocks.
Listed below are three stocks under the ‘mid-cap’ category with high Piotroski score that one should add to their watchlist:
Piramal Enterprises
With a market capitalization of Rs 21,112.77 crores, the stocks of Piramal Enterprises Limited closed at Rs 939.75 on Friday, slipping approximately 1.20 percent as compared to the previous close of Rs 950.85 apiece. The company has a Piotroski score of ‘7’.
During the recent financial years, the company’s basic business parameters such as operating revenues and net profits showed positive movements with the former increasing from Rs 7,725.5 crores during FY21-22 to Rs 8,934.3 crores during FY22-23, and the latter, during the same period, rose drastically from Rs 1,662.24 crores to Rs 9,968.58 crores.
In addition to the above, the company reported an increase in the profitability ratios, viz, the return on equity (RoE) and the return on capital employed (RoCE). The former increased from 4.78 percent during FY21-22 to 29.96 percent during FY22-23, and, the latter, during the same period, shifted from 7.73 percent to 11.69 percent.
CRISIL Limited
With a market capitalization of Rs 30,065.78 crores, the stocks of CRISIL Limited closed at Rs 4,112.20 on Friday, slipping 0.90 percent as compared to the previous close of Rs 4,147.85 apiece. The company has a Piotroski score of ‘8’. The company’s financial period ends in December every year.
During the recent financial years, the company’s basic business parameters such as operating revenues and net profits showed positive movements with the former increasing from Rs 2,300.69 crores during FY20-21 to Rs 2,768.72 crores during FY21-22, and the latter, during the same period, rose from Rs 465.81 crores to Rs 564.39 crores.
In addition to the above, the company reported an increase in the profitability ratios, viz, the return on equity (RoE) and the return on capital employed (RoCE). The former increased from 33.39 percent during FY20-21 to 34.29 percent during FY21-22, and, the latter, during the same period, shifted from 43.41 percent to 44.43 percent.
Linde India Limited
With a market capitalization of Rs 47,609.92 crores, the stocks of Linde India Limited closed at Rs 5,582.50 on Friday, slipping approximately 0.60 percent as compared to the previous close of Rs 5,614.55 apiece. The company has a Piotroski score of ‘8’.
During the recent financial years, the company’s basic business parameters such as operating revenues and net profits showed positive movements with the former increasing from Rs 2,111.96 crores during FY20-21 to Rs 3,135.52 crores post FY change, i.e., for the year ended March 2023, and the latter, during the same period, rose from Rs 507.22 crores to Rs 538.06 crores.
In addition to the above, the company reported a decrease in the profitability ratios, viz, the return on equity (RoE) and the return on capital employed (RoCE). The former decreased from 20.5 percent during FY21-22 to 18.38 percent during FY22-23, and, the latter, during the same period, shifted down from 28.33 percent to 21.31 percent.
Written by Amit Madnani
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