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A company is said to be “Fundamentally Strong” when it portrays a certain set of characteristics such as strong and consistent financials, low leverage ratios, and many more. 

Listed below are three Fundamentally Strong stocks under Rs 200 that one should keep on their radar: 

Indian Energy Exchange Limited 

With a market capitalization of Rs 12,073.63 crores, the stocks of Indian Energy Exchange Limited, a power trading platform provider based in India, closed at Rs 134.35 in Friday’s trading session, slipping around 0.40 percent compared to the previous close of Rs 134.85 apiece. 

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Having a glance at the annual consolidated financials of the company, the basic parameters hover at the same levels with some marginal dip in the current period. 

The operating revenues slightly went down from Rs 431 crores during FY21-22 to Rs 400 crores during FY22-23, and, the net profit figure, during the same time period, went down from Rs 307 crores to Rs 292 crores. 

Because of the Monopoly status enjoyed by the company, it has been able to maintain attractive net profit margins reported at 73 percent during FY22-23, higher than 71.26 percent margin reported during FY21-22. Moreover, the company has a ‘nil’ debt-to-equity ratio. 

Jamna Auto Industries Limited 

With a market capitalization of Rs 4,855.78 crores, the stocks of Jamna Auto Industries Limited, engaged in the manufacturing as well as selling of auto components for commercial vehicles, closed at Rs 121.75 in Friday’s trading session, slipping around 0.30 percent compared to the previous close of Rs 122.05 apiece. 

Having a walkthrough of the annual consolidated financials of the company, the basic business parameters have increased with the operating revenues increasing from Rs 1,717 crores during FY21-22 to Rs 2,325 crores during FY22-23, and, the net profit figure, moving up from Rs 140 crores to Rs 168 crores. 

Due to increased cost pressures, the net profits took a hit and the margins have declined a bit from 8.19 percent during FY21-22 to 7.24 percent during FY22-23. The company reduced its debt-to-equity ratio from 0.26 times to 0.02 times during the same time horizon. 

Castrol India Limited

With a market capitalization of Rs 14,371.95 crores, the stocks of Castrol India Limited, manufacturer and seller of lubricants, closed at Rs 145.30 in Friday’s trading session, slipping around 1.50 percent compared to the previous close of Rs 147.45 apiece. 

Digging into the quarterly standalone financials of the company, the basic business parameters have increased with the operating revenues increasing from Rs 1,293 crores during Q4FY22-23 to Rs 1,333 crores during Q1FY23-24, and, the net profit figure, moving up from Rs 202 crores to Rs 225 crores. 

With December being the year-end, the company saw a slight decline in net profits due to increased cost pressures from 18.08 percent during FY20-21 to 17.07 percent during FY21-22. Moreover, the company has reported a ‘nil’ debt-to-equity ratio in the past few financial years. 

Written by Amit Madnani

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