Strong balance sheets with ample cash reserves, manageable debt levels, and sufficient capital to fund operations and growth initiatives, combined with consistent profitability demonstrated by high-profit margins, return on equity (ROE), and return on invested capital (ROIC), and steady cash flow generation from core business activities, determine a financially strong stock.
Fundamentally sound companies tend to weather economic downturns better than their peers due to their competitive advantages, efficient operations, and capable management teams.
Here are the three financially strong stocks under Rs 50.
Infibeam Avenues Ltd
Infibeam Avenues Ltd is a small-cap stock with a market capitalization of Rs 8,646 crores. The company’s shares were trading at Rs 31.1 per share,up 0.58 percent on Tuesday from the previous close price.
The company’s revenue has increased by 61 percent yearly, from Rs 1,962 crore in FY 22-23 to Rs 3,171 crore in FY 23-24. During the same period, net profit increased by 15 percent from Rs 136 crore to Rs 156 crore.
Infibeam Avenues Ltd shares have gained 53 percent in the last six months and 114 percent in a year.
Infibeam Avenues Ltd. is in the business of software development services, maintenance, web development, payment gateway services, e-commerce, and other ancillary services.
The company operates an online payment system with technology platform solutions across industry verticals and as a payment processor for online merchants, websites, and commercial users.
The firm operates in five countries: India, the UAE, the Kingdom of Saudi Arabia, Oman, and the United States, and its payment gateway is utilized by over 5,000,000 merchants in India and international markets.
The company has a Return on Capital Employed (ROCE) of 5.68%, a Return on Equity (ROE) of 4.57%, and a net profit margin of 4.98% for FY24. Additionally, the company
has a debt-to-equity ratio of 0.02. Over the past three years, the company’s revenue has a compound annual growth rate (CAGR) of 67%, and its net profit has a CAGR of 31%.
South Indian Bank Ltd
South Indian Bank Ltd is a small-cap stock with a market capitalization of Rs 7,291 crores. The company’s shares were trading at Rs 27.9 per share, up 0.43 percent on Tuesday from the previous close price.
The company’s revenue has increased by 19 percent yearly, from Rs 7,233 crore in FY 22-23 to Rs 8,613 crore in FY 23-24. During the same period, net profit increased by 38 percent from Rs 775 crore to Rs 1,070 crore.
South Indian Bank Ltd shares have gained 23 percent in the last six months and 75 percent in a year.
South Indian Bank provides retail and corporate banking, para banking activities such as debit card, third party financial product distribution and Foreign Exchange Business.
The company has a Return on Capital Employed (ROCE) of 1.62%, a Return on Equity (ROE) of 12.12%, and a net profit margin of 12.42% for FY24. Additionally, Over the past three years, the company’s revenue has a compound annual growth rate (CAGR) of 6%, and its net profit has a CAGR of 158%.
Trident Ltd
Trident Ltd is a Mid-cap stock with a market capitalization of Rs 19,064 crores. The company’s shares were trading at Rs 37.4 per share, down 0.60 percent on Tuesday from the previous close price.
The company’s revenue has increased by 7.5 percent yearly, from Rs 6,332 crore in FY 22-23 to Rs 6,809 crore in FY 23-24. During the same period, net profit declined by 21 percent from Rs 442 crore to Rs 350 crore.
Trident Ltd shares have gained 2 percent in the last six months and 7 percent in a year.
Trident Limited, the flagship company of the Trident Group, is a prominent maker of yarn, bath and bed linen, wheat straw-based paper, chemicals, and captive power, as well as the world’s largest agro-based paper manufacturer.
Trident Ltd manufactures, trades, and sells Yarn, Terry Towels and bed sheets, and Paper and chemicals.
The company has a Return on Capital Employed (ROCE) of 10.80%, a Return on Equity (ROE) of 8.09%, and a net profit margin of 5.14% for FY24. Additionally, the company has a debt-to-equity ratio of 0.48. Over the past three years, the company’s revenue has a compound annual growth rate (CAGR) of 15%, and its net profit has a CAGR of 5%.
Written By Omkar Chitnis
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
