Small cap Stocks that have consistent financials and superior fundamentals are currently trading at a discount price. These companies are well-established and have a strong presence in the Indian market.
Here are three stocks trading at a 25 percent discount from their 52-week high price
Tamilnad Mercantile Bank Ltd:
India’s one of the oldest private sector banks Tamilnad Mercantile Bank. Bank is engaged in an array of banking and financial services to retail customers, micro, small, and medium enterprises.
The company shares are down by 20 percent from the 52-week high price of Rs 548.50. The company belongs to the small-cap category with a market capitalization of Rs 6,935 crore. Shares were trading at Rs 438 a share on June 23, up 0.29 percent from the previous close price.
The profitability ratios for FY 22-23 are 14.85 percent ROE and 2.84 percent ROCE. The operational margin grew to 9.80 percent, while the net profit margin at 25.22 percent. The company’s revenue increased 25 percent yearly, from Rs 3,833 crore in FY 21-22 to Rs 4,081 crore in FY 22-23. Net profit has grown by 25 percent, from Rs 822 crore to Rs 1,029 crore.
Nippon Life India Asset Management Ltd:
Nippon Life India Asset Mgt is an investment management company that is a subsidiary of Reliance Capital Ltd. The company operates mutual funds, exchange-traded funds, and publicly traded equities markets.
The company shares are down by 23 percent from the 52-week high price of Rs 326.10. The Company has a market capitalization of Rs 15,623 crore, which makes it a small-cap company. On June 23, shares were trading at Rs 250.70 a share, down 1.32 percent from the previous close price.
The profitability ratios for FY 22-23 are 20.57 percent ROE and 25.37 percent ROCE. The operating margin increased to 69.02 percent, while the net profit margin at 53.55 percent.
Revenue grew year on year, rising from Rs 1,306 crore in FY 21-22 to Rs 1,349 crore in FY 22-23. Net profit increased by 3 percent, from Rs 743 crore to Rs 722 crore.
Sun Tv Network Ltd:
Sun TV Network Ltd is India’s second-largest television network, which is engaged in producing and broadcasting satellite television and radio programs in South Indian regional languages.
The company shares are down by 25 percent from the 52-week high price of Rs 568.50 With a market capitalization of Rs 16,910 crore, the firm falls into the small-cap category. On June 23, shares were trading at Rs 429.10 per share, a 2.37 percent decrease from the previous close price.
For FY 22-23, the profitability ratios are 18.40 percent ROE and 24.49 percent ROCE. The operational margin grew to 60.55 percent, while the net profit margin at 45.15 percent. The company’s revenue increased 5 percent yearly, from Rs 3,584 crore in FY 21-22 to Rs 3,772 crore in FY 22-23. Net profit has grown by 3 percent, from Rs 1,650 crore to Rs 1,703 crore.
Written By Omkar C
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