A company is fundamentally strong when its finances have been stable throughout time. These businesses create strategic strategies to increase their market share and, eventually, their income. Such businesses will overcome difficulties imposed by constraints or a downturn in the economy.
Listed below is one such Fundamentally Strong stock with 88 percent net profit that investors should keep under their radar:
Olectra Greentech Limited is engaged in manufacturing electric buses and composite polymer insulators in India. And the company is expanding its product line in the e-mobility segment for 3-wheeler electric autos and electric trucks.
Shares of Olectra Greentech Ltd were trading at Rs 808.85 gaining 1.76 percent on Friday’s trading session from the previous close price of Rs 794. The company has a market cap of Rs 6,639 crore.
In the past 3 months, the stock gained 103 percent from Rs 399 to current levels, Therefore, if a shareholder bought 1 lakh shares of the firm three months ago, their holdings are now worth 2.03 lakhs!
And Year to date basis the stock gained 63.42 percent from Rs 517.65 to current levels.
As per consolidated financials, Operating revenue climbed from Rs 256 crore in Q3 to Rs 375 crore in Q4. Similarly, net profit improved from Rs 14 crore to Rs 26 crore.
On a YoY comparison of the metrics, the revenues significantly improved by 84 percent from Rs 593 crores during FY 21-22 to Rs 1,090 crores in FY 22-23. Within the same time period, The Net profit increased by 88 percent from Rs 34 crores to Rs 64 crores.
Profitability ratios have risen considerably.ROE improved from 4.54 percent in FY 21-22 to 7.96 percent in FY 22-23, while ROCE jumped from 7.32 percent to 13.25 percent. During the same period, the net profit margin remained constant for both years at 5.8 percent and the debt-to-equity ratio stands at 0.16.
As per the shareholding pattern, promoters of the company hold a 50.02 percent stake and foreign institutional investors hold a 9.03 percent stake in the company for FY 22-23.
Written by Omkar C
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