A company is said to be ‘fundamentally strong’ when it portrays a specific set of characteristics, viz, strong and consistent financial performance, lower leverage ratios, and many more.
Listed below are three such fundamentally strong stocks under the ‘large-cap’ category one could add to their watchlist that exhibits a dividend yield of up to 3 percent:
ITC Limited
With a market capitalization of Rs 5.37 lakh crores, the stocks of ITC Limited, one of the well-known FMCG groups in India, closed their trading session on Friday at Rs 430.10, slipping approximately 1.60 percent compared to the previous closing price of Rs 436.90 apiece.
According to the latest data available, the company’s dividend yield stands at 3.53 percent. In addition, the company reported a ‘nil’ debt-to-equity ratio, leveraging the company to have fewer short-term interest obligations.
Having a glance at the recent financials of the company, the basic business indicators, viz, its operating revenues as well as after-tax profit figures, were reported with some positive movements.
The former jumped from Rs 17,774 crores during Q2FY24 to Rs 18,019 crores during Q3FY24, and the latter, keeping the timeframe the same, took an upward shift from Rs 4,965 crores to Rs 5,407 crores.
Apart from the abovementioned metrics, the basic return ratios, i.e., the return on equity (RoE) and the return on capital employed (RoCE), were reported at healthy numbers during FY22-23 with the former reported at 27.75 percent and the latter at 35.81 percent.
Oracle Financial Services Software Limited
With a market capitalization of Rs 71,173.46 crores, the stocks of Oracle Financial Services Software Limited, providing financial software, consulting, and outsourced business processing services to the financial services industry, closed their trading session on Friday at Rs 8,211.85, slipping approximately 1.40 percent compared to the previous closing price of Rs 8,325.50 apiece.
According to the latest data available, the company’s dividend yield stands at 2.69 percent. In addition, the company’s debt-to-equity ratio is reported at ‘0.01’ times, leveraging the company to have fewer short-term interest obligations.
Having a glance at the recent financials of the company, the basic business indicators, viz, its operating revenues as well as after-tax profit figures, were reported with some positive movements.
The former jumped from Rs 1,444 crores during Q2FY24 to Rs 1,824 crores during Q3FY24, and the latter, keeping the timeframe the same, took an upward shift from Rs 417 crores to Rs 741 crores.
Apart from the abovementioned metrics, the basic return ratios, i.e., the return on equity (RoE) and the return on capital employed (RoCE), were reported at healthy numbers during FY22-23 with the former reported at 24.21 percent and the latter at 31.56 percent.
Hero MotoCorp Limited
With a market capitalization of Rs 88,812.23 crores, the stocks of Hero MotoCorp Limited, one of India’s largest motorcycle manufacturers, closed their trading session on Friday at Rs 4,442.35, slipping approximately 1.20 percent compared to the previous closing price of Rs 4,494.95 apiece.
According to the latest data available, the company’s dividend yield stands at 2.22 percent. In addition, the company’s debt-to-equity ratio is reported at ‘0.04’ times, leveraging the company to have fewer short-term interest obligations.
Having a glance at the recent financials of the company, the basic business indicators, viz, its operating revenues as well as after-tax profit figures, were reported with some positive movements.
The former jumped from Rs 9,533 crores during Q2FY24 to Rs 9,788 crores during Q3FY24, and the latter, keeping the timeframe the same, took a marginal shift from Rs 1,007 crores to Rs 1,091 crores.
Apart from the abovementioned metrics, the basic return ratios, i.e., the return on equity (RoE) and the return on capital employed (RoCE), were reported at healthy numbers during FY22-23 with the former reported at 16.87 percent and the latter at 22.14 percent.
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.
