A company is said to be ‘fundamentally strong’ if it portrays a specific set of characteristics such as strong and consistent financials, lower leverage ratios, and many more.
Listed below are three such fundamentally strong stocks that are currently trading a P/E less than the industry average:
Apar Industries Limited
With a market capitalization of Rs 25,277.92 crores, the stocks of Apar Industries Limited, engaged in the business of manufacture and sale of conductors, closed at Rs 6,293 on Friday, slipping approximately 1 percent as compared to the previous closing levels of Rs 6,352.35.
The company’s P/E ratio stands at 29.33 which is less than the industry average number of 68.43.
During the recent financial quarters, the company’s prime business indicators, viz, operating revenues as well as after-tax profits, saw a jump in numbers with the former increasing from Rs 3,925 crores during Q2FY24 to Rs 4,013 crores during Q3FY24 and the latter, keeping the timeframe the same, took an upward shift from Rs 174 crores to Rs 218 crores.
Bharat Electronics Limited
With a market capitalization of Rs 1.50 lakh crores, the stocks of Bharat Electronics Limited, manufacturing and supplying electronic equipment and systems to the defence sector, closed at Rs 205.50 on Friday, gaining approximately 5.50 percent as compared to the previous closing levels of Rs 194.95.
The company’s P/E ratio stands at 39.15 which is less than the industry average number of 74.25.
During the recent financial quarters, the company’s prime business indicators, viz, operating revenues as well as after-tax profits, saw a jump in numbers with the former increasing from Rs 4,009 crores during Q2FY24 to Rs 4,162 crores during Q3FY24 and the latter, keeping the timeframe the same, took an upward shift from Rs 790 crores to Rs 860 crores.
Dr Reddy’s Laboratories Limited
With a market capitalization of Rs 1.08 lakh crores, the stocks of Dr Reddy’s Laboratories Limited, the leading pharmaceutical company based in India offering APIs, Custom Pharmaceutical Services (CPS), etc, closed at Rs 6,445 on Friday, gaining approximately 1.30 percent as compared to the previous closing levels of Rs 6,363.90.
The company’s P/E ratio stands at 18.65 which is less than the industry average number of 52.83.
During the recent financial quarters, the company’s prime business indicators, viz, operating revenues as well as after-tax profits, showed an opposing movement with the former, on one end, increasing from Rs 6,903 crores during Q2FY24 to Rs 7,237 crores during Q3FY24 and the latter, keeping the timeframe the same, took a downward shift from Rs 1,482 crores to Rs 1,381 crores.
Written by Amit Madnani
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