A company is said to be ‘fundamentally strong’ after it portrays a specific set of characteristics, including strong & consistent financial performance, lower leverage numbers & ratios, and many more.
Price-to-earnings (P/E) ratio, one of the most popular valuation metrics of stocks, helps assess the relative value of a company’s stock, and the same aids in comparing a company’s valuation against its historical performance, within its industry, or the overall market.
Listed below are four such fundamentally strong stocks trading at P/E levels lesser than their industry average:
Dalmia Bharat Limited
With a market capitalization of Rs 37,100.67 crores, the stocks of Dalmia Bharat Limited started their trading session on Wednesday at Rs 2,005 and closed the session at Rs 1,978.20, slipping approximately 0.70 percent compared to the previous close of Rs 1,992.80 apiece.
The company’s price-to-earnings (P/E) ratio stands at 33.98 and the same is lesser compared to its industry average of 39.60.
Having a glance at the recent financials, the company’s basic business parameters, viz, its operating revenues as well as after-tax profits, jumped in numbers with the former rising from Rs 3,149 crores during Q2FY24 to Rs 3,600 crores during Q3FY24, and the latter, keeping the timeframe the same, rose from Rs 123 crores to Rs 266 crores.
Ambuja Cements Limited
With a market capitalization of Rs 1.24 lakh crores, the stocks of Ambuja Cements Limited started their trading session on Wednesday at Rs 621.20 and closed the session at Rs 625.55, gaining approximately 0.40 percent compared to the previous close of Rs 623.30 apiece.
The company’s price-to-earnings (P/E) ratio stands at 39.08 and the same is lesser compared to its industry average of 39.60.
Having a glance at the recent financials, the company’s basic business parameters, viz, its operating revenues as well as after-tax profits, jumped in numbers with the former rising from Rs 7,424 crores during Q2FY24 to Rs 8,129 crores during Q3FY24, and the latter, keeping the timeframe the same, rose from Rs 987 crores to Rs 1,090 crores.
ACC Limited
With a market capitalization of Rs 47,413.47 crores, the stocks of ACC Limited started their trading session on Wednesday at Rs 2,524.70 and closed the session at Rs 2,524.85, a flat movement compared to the previous close of Rs 2,525.20 apiece.
The company’s price-to-earnings (P/E) ratio stands at 29.14 and the same is lesser compared to its industry average of 39.60.
Having a glance at the recent financials, the company’s basic business parameters, viz, its operating revenues as well as after-tax profits, jumped in numbers with the former rising from Rs 4,435 crores during Q2FY24 to Rs 4,914 crores during Q3FY24, and the latter, keeping the timeframe the same, rose from Rs 388 crores to Rs 538 crores.
Orient Cement Limited
With a market capitalization of Rs 4,431.31 crores, the stocks of Orient Cement Limited started their trading session on Wednesday at Rs 223.40 and closed the session at Rs 216.30, slipping approximately 0.60 percent compared to the previous close of Rs 217.60 apiece.
The company’s price-to-earnings (P/E) ratio stands at 25.63 and the same is lesser compared to its industry average of 44.24.
Having a glance at the recent financials, the company’s basic business parameters, viz, its operating revenues as well as after-tax profits, jumped in numbers with the former rising from Rs 721 crores during Q2FY24 to Rs 751 crores during Q3FY24, and the latter, keeping the timeframe the same, rose from Rs 25 crores to Rs 45 crores.
Written by Amit Madnani
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