Fundamentally strong companies are those that have strong financials over the years, such as high-profit growth, a low debt-to-equity ratio, and consistent cash flow.
Here are three Fundamentally strong stocks that are trading at up to a 20% discount from their September month high.
KPIT Technologies Ltd
KPIT is a global technology business that provides embedded software and product engineering services to automotive companies.
The company’s shares declined by 11 percent from Rs 1200.70 a share on September 1st, 2023 to the current price level. Similarly, the company’s shares are down 13 percent from their 52-week high of Rs 1,219.30.
KPIT Technologies is a Mid-cap category with a market capitalization of Rs 29,319 crore. On Friday Shares closed at a price of Rs 1,073.75 a share, down 0.36 percent from the previous close price.
The Company’s return on equity increased from 20.94 percent in FY22 to 23.06 percent in FY23, while the return on capital employed rose from 22.33 percent to 23.59 percent during the same period.
The company’s revenue increased 60 percent yearly, from Rs 685 crore in Q1FY23 to Rs 1,097 crore in Q1FY24. Net profit has increased by 54 percent from Rs 87 crore to Rs 134 crore.
Elecon Engineering Company Ltd
Elecon Engineering Company Ltd provides power transmission systems as well as material handling equipment. Steel, fertilizers, cement, coal, lignite, and iron ore mining, sugar, and power stations.
The company’s shares declined by 20 percent from Rs 900.45 a share on September 1st, 2023 to the current price level. Similarly, the company’s shares are down 26 percent from their 52-week high of Rs 983.
Elecon Engineering is a small-cap stock with a market capitalization of Rs 8,112 crore. On Friday Shares closed at a price of Rs 719.25 a share, up 2.01 percent from the previous close price.
The Company’s return on equity increased from 13.37 percent in FY22 to 18.56 percent in FY23, while the return on capital employed rose from 17.50 percent to 22.46 percent during the same period.
The company’s revenue increased 26 percent yearly, from Rs 327 crore in Q1FY23 to Rs 414 crore in Q1FY24. Net profit has increased by 71 percent from Rs 42 crore to Rs 72 crore.
Zen Technologies Limited
Zen Technologies Limited manufactures cutting-edge land-based military training simulators, driving simulators, live range equipment, and anti-drone systems.
The company’s shares declined by 12 percent from Rs 831.30 a share on September 1st, 2023 to the current price level. Similarly, the company’s shares are down 21 percent from their 52-week high of Rs 911.40.
Zen Technologies is a small-cap stock with a market capitalization of Rs 6,009 crore. On Friday Shares closed at a price of Rs 730.20 a share, up 5 percent from the previous close price.
The Company’s return on equity increased from 0.95 percent in FY22 to 17.70 percent in FY23, while the return on capital employed rose from 1.72 percent to 23.59 percent during the same period.
The company’s revenue increased 250 percent yearly, from Rs 37 crore in Q1FY23 to Rs 132 crore in Q1FY24. Net profit has increased by 580 percent from Rs 7 crore to Rs 48 crore.
Written by Omkar Chitnis
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