A company is said to be ‘fundamentally strong’ if it portrays a specific set of characteristics such as strong & consistent financial performance, lower leverage ratios, and many more.
Listed below are three such fundamentally strong stocks under the ‘micro-cap’ category trading under Rs 250 that one should add to their watchlist:
DRC Systems India Limited
With a market capitalization of Rs 203.09 crores, the stocks of DRC Systems India Limited closed at Rs 46.26 on Friday, slipping around 0.20 percent as compared to the previous close of Rs 46.34 apiece.
Having a look at the financials of the company, the operating revenues as well as after-tax profits have increased in recent years with the most recent movement in the former from Rs 19 crores during FY21-22 to Rs 25 crores during FY22-23, and, the latter moving up from Rs 70 lakhs to Rs 6 crores.
Enjoying a ‘nil’ debt-to-equity ratio, the company’s basic profitability ratio such as the return on equity (RoE) increased from 10.36 percent during FY21-22 to 19.53 percent during FY22-23. Moreover, the return on capital employed (RoCE) rose from 5.58 percent to 24.75 percent.
Indo Borax and Chemicals Limited
With a market capitalization of Rs 507.66 crores, the stocks of Indo Borax and Chemicals Limited closed at Rs 158.20 hitting the 5 percent upper circuit during the last few trading minutes on Friday.
Having a look at the financials of the company, the operating revenues as well as after-tax profits have increased in recent years with the most recent movement in the former from Rs 175 crores during FY21-22 to Rs 225 crores during FY22-23, and, the latter moving up marginally from Rs 49 crores to Rs 50 crores.
Enjoying a ‘nil’ debt-to-equity ratio, the company’s basic profitability ratio such as the return on equity (RoE) has been reported at decent numbers just above 20 percent. Moreover, the return on capital employed (RoCE) rose from 23.93 percent during FY21-22 to 26.21 percent during FY22-23.
Priti International Limited
With a market capitalization of Rs 228.31 crores, the stocks of Priti International Limited closed at Rs 196.50 on Friday, slipping around 0.90 percent as compared to the previous close of Rs 198.20 apiece.
Having a look at the financials of the company, the operating revenues as well as after-tax profits have increased in recent years with the most recent movement in the former from Rs 57 crores during FY21-22 to Rs 82 crores during FY22-23, and, the latter nearly doubling from Rs 4 crores to Rs 7 crores.
Enjoying a ‘nil’ debt-to-equity ratio, the company’s basic margin ratios such as the operating profit margin (OPM) increased from 10.63 percent during FY21-22 to 12.05 percent during FY22-23. Moreover, the net profit margin (NPM) rose slightly from 7.64 percent to 8.58 percent.
Written by Amit Madnani
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