A company is said to be ‘fundamentally strong’ after it showcases a certain set of characteristics such as strong and consistent financials, lower leverage ratios, and many more.
Listed below are three stocks under the ‘mid-cap’ category under Rs 450 that one should add to their watchlist:
General Insurance Corporation of India
With a market capitalization of Rs 46,140.72 crores, the stocks of General Insurance Corporation of India, engaged in the business of Reinsurance, closed at Rs 263 on Monday, gaining around 1.60 percent compared to the previous close of Rs 258.85 apiece.
Digging into the recent quarterly financials, the basic business parameters of the company such as the operating revenues and net profits showed opposing movements.
The former, on one end, moved up from Rs 7,723.96 crores during Q4FY22-23 to Rs 8,696.42 crores during Q1FY23-24, and, the latter, on the other end, reduced down from Rs 2,609.28 crores to Rs 950.07 crores due to an increasing cost pressure.
In addition, the company’s profitability metrics have increased with the return on equity (RoE) moving up from 8.66 percent during FY21-22 to 21.31 percent during FY22-23, and, the return on capital employed (RoCE), during the same period, increasing from 14.31 percent to 25.80 percent.
Sumitomo Chemical India Limited
With a market capitalization of Rs 19,229.59 crores, the stocks of Sumitomo Chemical India Limited, engaged in the business of manufacturing and selling household insecticides, closed at Rs 385.25 on Monday, slipping 1 percent as compared to the previous close of Rs 389.45 apiece.
Digging into the recent quarterly financials, the basic business parameters of the company such as the operating revenues and net profits have increased.
The operating revenues have moved up from Rs 724.24 crores during Q1FY23-24 to Rs 903.48 crores during Q2FY23-24, and, the net profits, keeping the timeframe the same, increased from Rs 61.68 crores to Rs 143.45 crores.
Due to increased cost pressure, the profitability ratios of the company took a marginal hit with the return on equity (RoE) reducing from 24.42 percent during FY21-22 to 23.31 percent during FY22-23, and, the return on capital employed (RoCE) declining from 33.66 percent to 30.65 percent. The company has a ‘nil’ debt-to-equity ratio for the past few financial years.
Nippon Life India Asset Management Limited
With a market capitalization of Rs 26,079.25 crores, the stocks of Nippon Life India Asset Management Limited, engaged in managing mutual funds such as exchange-traded funds (ETFs), etc, closed at Rs 417.35 on Monday, slipping around 0.55 percent compared to the previous close of Rs 419.65 apiece.
Digging into the recent quarterly financials, the basic business parameters of the company such as the operating revenues and net profits have increased.
The operating revenues have moved up from Rs 354.15 crores during Q1FY23-24 to Rs 397.48 crores during Q2FY23-24, and, the net profits, keeping the timeframe the same, increased from Rs 235.37 crores to Rs 244.25 crores.
Due to increased cost pressure, the profitability ratios of the company took a marginal hit with the return on equity (RoE) reducing from 23.32 percent during FY21-22 to 21.40 percent during FY22-23, and, the return on capital employed (RoCE) declining from 30.17 percent to 26.64 percent. The company has a debt-to-equity ratio of ‘zero’.
Written by Amit Madnani
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.