Stocks to Watch: 3 Mid cap stocks with a High Piotroski score of 9 

The Piotroski score is a discrete score between zero and nine, that is used to determine the strength of a company’s financial position. It considers parameters such as profitability, liquidity, operating efficiency, cash flows, and debt situation. The score is used to screen stocks and find value stocks. One point is awarded for every parameter that is met. A score of nine is the best, while zero is the worst. 

Here are four mid-cap stocks with a Piotroski score of 9: 

SKF India Ltd 

SKF India Ltd is a leading supplier of products, solutions & services within rolling bearings, seals, mechatronics, and lubrication systems. The company’s shares were trading at ₹ 4330 levels on Tuesday. 

With a market capitalization of ₹ 21,610 crores, SKF India is a mid-cap company. It has a high return on equity of 24.83% and an ideal debt-to-equity ratio of 0.01. The company’s shares were trading at a price-to-earnings ratio (P/E) of 41.12 which is substantially higher than the industry P/E of 26.51, indicating that the stock might be overvalued as compared to its peers. 

SKF India reported a net profit of ₹ 525.00 crores in the financial year 2022-23, up 32.91% as compared to ₹ 395.00 crores reported in the financial year 2021-22. Its revenue came in at ₹ 4,305.00 crores in FY23, up 17.43% as compared to ₹ 3,666 crores in FY22. 

Trident Ltd 

Trident is the flagship company of the Trident group and is a leading manufacturer of yarn bath linen, bed linen and wheat straw-based paper. Its shares were trading at ₹ 34.75 apiece on Tuesday. 

With a market capitalization of ₹ 17,285 crores, Trident is a mid-cap stock. It has a high return on equity of 23.25% and an ideal debt-to-equity ratio of 0.31. The company’s shares were trading at a price-to-earnings ratio (P/E) of 34.96 which is higher than the industry P/E of 22.56, indicating that the stock might be overvalued as compared to its peers. 

Trident reported a net profit of ₹ 834.00 crores in the financial year 2021-22, up 174.34% as compared to ₹ 304.00 crores reported in the financial year 2020-21. Its revenue came in at ₹ 6998 crores in FY22, up 54.45% as compared to ₹ 4,531.00 crores in FY22. The company’s results for the latest quarter and year are awaited. 

Narayana Hrudayalaya Ltd 

Narayana Hrudalaya is engaged in providing economical healthcare services. It has a network of multispecialty and super-speciality hospitals spread across multiple locations. Its shares were trading at ₹ 831 levels on Tuesday.

With a market capitalization of ₹ 16,882 crores, Narayana Hrudayalaya is a mid-cap stock. It has a high return on equity of 33.49% and an ideal debt-to-equity ratio of 0.41. The company’s shares were trading at a price-to-earnings ratio (P/E) of 27.85 which is lower than the industry P/E of 38.59, indicating that the stock might be undervalued as compared to its peers. 

Narayana Hrudayalaya reported a net profit of ₹ 607.00 crores in the financial year 2022-23, up 77.49% as compared to ₹ 342.00 crores reported in the financial year 2021-22. Its revenue came in at ₹ 4,525.00 crores in FY23, up 22.26% as compared to ₹ 3,701.00 crores in FY22. 

Written by Simran Bafna 

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