The Relative Strength Index (RSI) is a technical indicator used in financial markets to measure the speed and change of price movements. It ranges from 0 to 100 and is typically used to assess whether a stock or asset is overbought or oversold.
An RSI value above 70 indicates that the asset might be overbought, suggesting it could be overvalued and might experience a price correction. Conversely, an RSI below 30 indicates that the asset might be oversold, potentially signaling that it is undervalued and could experience a price rebound.
Listed below are some of the Fundamentally Strong Stocks with RSI Under 30 that you can add to your watchlist.
Voltamp Transformers Ltd
Voltamp specializes in the design, manufacture, and supply of a wide range of electrical transformers and related products.
It’s trading at an RSI of 19.88 indicating it is oversold. It has achieved a 5-year net sales CAGR of 14 percent and a 5-year net profit CAGR of 29 percent, along with a 5-year annualized return of 478.31 percent.
It has a market capitalization of Rs. 7,728.32 crores, based on the company’s fundamental Ratios the company’s P/E is 22.51 less than the Industry P/E ratio of 74.04 indicating it is undervalued, and the company Debt to Equity Ratio stands at 0 with an impressive ROE of 24.22 percent and ROCE of 31.88 percent.
Dr Reddys Laboratories Ltd
Dr Reddys specializes in the development, manufacturing, and marketing of a wide range of generic medicines, active pharmaceutical ingredients (APIs), and biosimilars.
It’s trading at an RSI of 25.59 indicating it is oversold. It has achieved a 5-year net sales CAGR of 13 percent and a 5-year net profit CAGR of 24 percent, along with a 5-year annualized return of 92.36 percent.
It has a market capitalization of Rs. 1,02,191 crores, based on the company’s fundamental Ratios the company’s P/E is 19.03 less than the Industry P/E ratio of 39 indicating it is undervalued, and the company Debt to Equity Ratio stands at 0.16 with an impressive ROE of 17.36 percent and ROCE of 20.68 percent.
Varun Beverages Ltd
Varun Beverages specializes in the production and distribution of non-alcoholic beverages, including carbonated drinks, juices, and bottled water.
It’s trading at an RSI of 26.06 indicating it is oversold. It has achieved a 5-year net sales CAGR of 26 percent and a 5-year net profit CAGR of 47 percent, along with a 5-year annualized return of 667 percent.
It has a market capitalization of Rs. 1,83,125 crores, based on the company’s fundamental Ratios the company P/E is 72, and the company Debt to Equity Ratio stands at 0.79 with an impressive ROE of 28.25 percent and ROCE of 23.41 percent.
Va Tech Wabag Ltd
VA Tech Wabag Ltd specializes in providing water and wastewater treatment solutions, focusing on the design, engineering, and execution of large-scale projects.
It’s trading at an RSI of 25.53 indicating it is oversold. It has achieved a 5-year net sales CAGR of 1 percent and a 5-year net profit CAGR of 21 percent, along with a 5-year annualized return of 479 percent.
It has a market capitalization of Rs. 8,285.01 crores, based on the company’s fundamental Ratios the company’s P/E is 31.7 less than the Industry P/E ratio of 34.6 indicating it is undervalued, and the company Debt to Equity Ratio stands at 0.22 with an impressive ROE of 13.27 percent and ROCE of 15.16 percent.
Written by Sridhar J
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