Fundamentally strong stocks are those of companies that have a solid financial foundation and are well-positioned for long-term growth, regardless of short-term market fluctuations.
Some key characteristics of fundamentally strong stocks include strong earnings and revenue growth, healthy balance sheets, robust profitability metrics, competitive advantages and more.
Here are three fundamentally strong stocks that are currently trading at a discount of up to 36 percent from their 52-week highs.
ITD Cementation India Limited
With a market cap of Rs. 8,461.4 crores, the shares of one of the leading Engineering and Construction companies surged by 1% on BSE to Rs. 499 on Friday, as against its previous closing price of Rs. 494.15.
Shares of ITD Cementation hit its 52-week high at Rs. 589.65 on 2nd July, and compared to its current trading price of Rs. 490.85, the stock is trading at a discount of nearly 17 percent.
In terms of financials, the revenue from operations stood at Rs. 2,257.7 crore in Q4 FY23-24, rising by 38.4 percent YoY from Rs. 1,631.4 crore in Q4 FY22-23, and the after-tax profit grew by 138.3 percent to Rs. 89.6 crore from Rs. 37.6 crore, during the same period.
The stock has delivered multibagger returns of 190.2 percent in the last one year, and 69.2 percent of positive returns year-to-date.
ITD Cementation India Limited is engaged in the construction of a wide range of structures such as maritime structures, Mass Rapid Transport Systems (MRTS), dams & tunnels, airports, highways, bridges & flyovers and other foundations and specialised engineering work.
Jai Balaji Industries Limited
With a market cap of Rs. 14,865.2 crores, the shares of a leading player in value-added steel product manufacturing surged by nearly 1.03 percent on BSE to Rs. 880.95 on Friday, as against its previous closing price of Rs. 871.9.
Shares of Jai Balaji Industries hit a 52-week high at Rs. 1,307 on 27th February, and compared to its current trading price of Rs. 862, the stock is trading at a discount of around 34 percent.
Jai Balaji Industries witnessed a 7.05 percent year-on-year increase in revenue from operations, climbing from Rs. 1,724 crore in Q4 FY22-23 to Rs. 1,845.6 crore in Q4 FY23-24. Similarly, the after-tax profit grew from a loss of Rs. 13.08 crore to a profit of Rs. 273 crore, during the same period.
The stock has delivered multibagger returns of 828.6 percent in the last one year, and 11.7 percent of positive returns year-to-date.
Jai Balaji Industries Limited, a leading fully integrated steel company, is primarily engaged in the business of manufacturing of iron and steel products including sponge iron, pig iron, ductile iron pipe, ferrochrome, billet, TMT, coke and sinter with captive power plant.
Waaree Renewable Technologies Limited
With a market cap of Rs. 20,194.5 crores, the shares of a solar EPC company surged by nearly 1.7 percent on BSE to Rs. 1,970 on Friday, as against its previous closing price of Rs. 1,937.55.
Shares of Waaree Renewable hit its 52-week high at Rs. 3,037.75 on 26th April, and compared to its current trading price of Rs. 1,939, the stock is trading at a discount of around 36 percent.
Waaree Renewable Technologies witnessed a 344.3 percent year-on-year increase in revenue from operations, climbing from Rs. 61.5 crore in Q4 FY22-23 to Rs. 273.25 crore in Q4 FY23-24. Similarly, the after-tax profit grew by 340.6 percent from Rs. 12.3 crore to Rs. 54.2 crore, during the same period.
The stock has delivered multibagger returns of 698 percent in the last one year, as well as 340 percent returns year-to-date.
Waaree Renewable Technologies Limited is engaged in the business of generation of power through renewable energy sources and also providing Engineering, procurement, and construction (EPC) services.
Written by Shivani Singh
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