Fundamentally strong stocks are those of companies that have a solid financial foundation and are well-positioned for long-term growth, regardless of short-term market fluctuations.
Some key characteristics of fundamentally strong stocks include strong earnings and revenue growth, healthy balance sheets, robust profitability metrics, competitive advantages and more.
Following are a few fundamentally strong stocks that are currently trading at a discount of up to 32 percent from their 52-week highs:
Astral Limited
With a market cap of Rs. 50,771.8 crores, the shares of a pioneer in manufacturing of CPVC pipes & fittings surged by 0.6 percent on BSE to Rs. 1,910 on Wednesday.
Shares of Astral Limited hit its 52-week high at Rs. 2,453.95 on 2nd July, and compared to its Wednesday closing price of Rs. 1,890.05, the stock is trading at a discount of nearly 23 percent.
In terms of financials, the revenue from operations stood at Rs. 1,384 crores in Q1FY25, rising by 7.8 percent YoY from Rs. 1,283 crores in Q1FY24, and the after-tax profit grew marginally by 0.8 percent to Rs. 120 crores from Rs. 119 crores, during the same period.
The stock has delivered negative returns of nearly 4.6 percent in the last one year, as well as around 0.7 percent returns year-to-date.
Established in 1996, Astral Limited is engaged in the manufacturing of plumbing systems, drainage systems, agriculture, industrial, electrical conduit pipes, water tanks and faucets with all kinds of necessary fittings.
Titagarh Rail Systems Limited
With a market cap of Rs. 19,343.2 crores, the shares of a leading comprehensive mobility solution provider surged by 1.03 percent on BSE to Rs. 1,462.45 on Wednesday.
Shares of Titagarh Rail Systems hit its 52-week high at Rs. 1,896.5 on 27th June, and compared to its Wednesday closing price of Rs. 1,436.3, the stock is trading at a discount of nearly 25 percent.
In terms of financials, the revenue from operations stood at Rs. 903 crore in Q1FY25, falling marginally by 0.8 percent YoY from Rs. 911 crore in
Q1FY24, but the after-tax profit grew by 8.1 percent to Rs. 67 crore from Rs. 62 crore, during the same period.
The stock has delivered multibagger returns of nearly 109 percent in the last one year, and around 38 percent of positive returns year-to-date.
Titagarh Rail Systems Limited, formerly known as Titagarh Wagons Limited, is mainly engaged in the manufacturing and selling of freight wagons, passenger coaches, metro trains, train electricals, steel castings, specialised equipments & bridges, ships, etc.
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Olectra Greentech Limited
With a market cap of Rs. 13,117.3 crores, the stock surged by 0.8 percent on BSE to Rs. 1,608.9 on Wednesday.
Shares of Olectra Greentech hit its 52-week high at Rs. 2,222 on 22nd February, and compared to its Wednesday closing price of Rs. 1,598.1, the stock is trading at a discount of nearly 28 percent.
In terms of financials, the revenue from operations stood at Rs. 314 crores in Q1FY25, rising by 45.4 percent YoY from Rs. 216 crores in Q1FY24, and the after-tax profit grew by 33.3 percent to Rs. 24 crores from Rs. 18 crores, during the same period.
The stock has delivered positive returns of nearly 30 percent in the last one year, as well as around 16.5 percent returns year-to-date.
Incorporated in 2000, Olectra Greentech Limited is primarily engaged in the manufacturing of composite polymer insulators, electric buses and electric trucks.
Patel Engineering Limited
With a market cap of Rs. 4,592.6 crores, the stock surged by nearly 2 percent on BSE to Rs. 54.89 on Wednesday.
Shares of Patel Engineering hit its 52-week high at Rs. 79 on 6th February, and compared to its Wednesday closing price of Rs. 54.39, the stock is trading at a discount of nearly 31 percent.
In terms of financials, the revenue from operations stood at Rs. 1,102 crores in Q1FY25, falling marginally by 1.5 percent YoY from Rs. 1,119 crores in Q1FY24, but the after-tax profit grew by 28 percent to Rs. 55 crores from Rs. 43 crores, during the same period.
The stock has delivered negative returns of nearly 3 percent in the last one year, as well as around 16.2 percent returns year-to-date.
Established in 1949, Patel Engineering Limited is involved in the construction of dams, bridges, tunnels, roads, piling works, industrial structures and other kinds of heavy civil engineering works in areas like hydro, irrigation & water supply, urban infrastructure and transport.
Adani Total Gas Limited
With a market cap of Rs. 94,369.2 crores, the shares of India’s leading City Gas Distribution (CGD) company surged by 1.2 percent on BSE to Rs. 868.4 on Wednesday.
Shares of Adani Total Gas hit its 52-week high at Rs. 1,259.9 on 12th August 2023, and compared to its Wednesday closing price of Rs. 858.05, the stock is trading at a discount of nearly 32 percent.
In terms of financials, the revenue from operations stood at Rs. 1,145 crores in Q1FY25, rising by 8.4 percent YoY from Rs. 1,056 crores in Q1FY24, and the after-tax profit grew by 14.6 percent to Rs. 172 crores from Rs. 150 crores, during the same period.
The stock has delivered positive returns of nearly 29 percent in the last one year, but around 14.3 percent of negative returns year-to-date.
Adani Total Gas Limited is engaged in the business of city gas distribution (CGD), supplying PNG to industrial, commercial, and residential segments and CNG to the automotive segment.
Written by Shivani Singh
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