A company with a ‘fundamentally strong’ nature exhibits a specific set of characteristics such as consistent and strong financials, lower leverage ratios, and many more. Along with that, if the stock prices are within the buying range, then, it becomes a boon, especially, for Retail Investors.
Listed below are three fundamentally strong penny stocks that one should keep on their radar:
Sarveshwar Foods Limited
With a market capitalization of Rs 499.20 crores, the stocks of Sarveshwar Foods Limited closed at Rs 5.10 hitting the 2 percent lower circuit on Friday.
During the recent financial quarters, the company has reported an increase in operating revenues as well as net profits with the former increasing from Rs 129.81 crores during Q4FY22-23 to Rs 187.68 crores during Q1FY23-24, and, the latter, keeping the timeframe the same, moved up from Rs 1.81 crores to Rs 2.90 crores.
The basic profitability ratios such as return on equity (RoE) marginally increased from 4.45 percent during FY21-22 to 4.87 percent during FY22-23. Moreover, the return on capital employed (RoCE) moved up from 6.65 percent to 8.14 percent keeping the time horizon the same.
Pudumjee Paper Products Limited
With a market capitalization of Rs 449.68 crores, the stocks of Pudumjee Paper Products Limited closed at Rs 47.36 on Friday, slipping 0.30 percent compared to the previous closing levels of Rs 47.50 apiece.
During the recent financial quarters, the company has reported an increase in operating revenues as well as net profits with the former increasing from Rs 181 crores during Q1FY23-24 to Rs 195 crores during Q2FY23-24, and, the latter, keeping the timeframe the same, moved up from Rs 11 crores to Rs 18 crores.
Moreover, the company’s profitability metrics such as return on equity (RoE) and return on capital employed (RoCE) increased. The RoE increased from 10.57 percent during FY21-22 to 16.06 percent during FY22-23, and, the RoCE, during the same period, rose from 13.12 percent to 19.39 percent.
The net profit margins of the company shifted up from 6.19 percent to 7.81 percent. Debt-to-equity ratio, one of the most popular leverage metrics, reduced from 0.21 times to 0.13 times.
Integra Essentia Limited
With a market capitalization of Rs 296.61 crores, the stocks of Integra Essentia Limited closed at Rs 6.49 on Friday, gaining 1.30 percent compared to the previous closing levels of Rs 6.41 apiece.
During the recent financial quarters, the company has reported an increase in operating revenues as well as net profits with the former increasing from Rs 55 crores during Q1FY23-24 to Rs 66.90 crores during Q2FY23-24, and, the latter, keeping the timeframe the same, moved up from Rs 1.11 crores to Rs 7.54 crores.
The company reported a return on equity (RoE) of 28.8 percent, and, a return on capital employed (RoCE) was reported at 13.99 percent during FY22-23. Apart from the same, the net profit margins (NPMs) of the company increased from 1.59 percent during FY21-22 to 2.76 percent during FY22-23.
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.
