The Piotroski Score is a financial metric used to evaluate a company’s financial health, ranging from 0 to 9, with a higher score indicating stronger financial performance. It is widely used by value investors to identify attractive investment opportunities. A low Piotroski score indicates weaker financial health and potential risks.
Financially strong stocks are shares of companies with robust financial health, featuring low debt, stable earnings, strong cash flow, and a competitive market position, offering long-term growth and resilience against economic downturns.
Here are some financially strong stocks priced under Rs. 200 that have a high Piotroski score of 9:
1. Motherson Sumi Wiring India Limited:
With a market capitalization of Rs. 28,211.09 crores, Motherson Sumi Wiring India Limited’s share price closed at Rs. 63.81 per share, down by 0.90 percent from its previous close of Rs. 64.39.
The company has a Piotroski score of 9, and the company’s revenue has increased by 17.8 percent, from Rs. 7,068 crore in FY23 to Rs. 8,328 crore in FY24. The net profit reached Rs. 638 crore in FY24, which has grown by 31.01 percent as compared to FY23.
In terms of return ratios, the company’s ROCE and ROE should be 48 percent and 42.4 percent, respectively. The debt-to-equity ratio of the company is to be 0.17x, which shows the company is almost debt-free. Motherson Sumi Wiring India Limited’s EPS is to be Rs. 1.49.
Motherson Sumi Wiring India Limited (MSWIL) was established in 2020 and specializes in the manufacturing of wiring harnesses and related automotive components. The company operates across multiple segments, providing innovative solutions for the automotive industry.
2. GPT Infraprojects Limited
With a market capitalization of Rs. 1,819.65 crores, GPT Infraprojects Limited’s share price closed at Rs. 144 per share, down by 0.93 percent from its previous close of Rs. 145.35.
The company has a Piotroski score of 9, and the company’s revenue has increased by 25.83 percent from Rs. 809 crore in FY23 to Rs. 1,018 crore in FY24. The net profit reached Rs. 56 crore in FY24, which has grown by 86.67 percent as compared to FY23.
In terms of return ratios, the company’s ROCE and ROE should be 21.6 percent and 19.1 percent, respectively. The debt-to-equity ratio of the company is to be 0.23x, which shows the company is almost debt-free. GPT Infraprojects Limited’s EPS is to be Rs. 5.51.
GPT Infraprojects Limited was established in 1980 and is based in Kolkata. The company specializes in civil and infrastructure construction projects. The company manufactures concrete sleepers for railways and executes a range of projects, including railway and civil engineering works.
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3. Prakash Industries Limited
With a market capitalization of Rs. 3,133.93 crores, Prakash Industries Limited’s share price closed at Rs. 175 per share, down by 2.02 percent from its previous close of Rs. 178.60.
The company has a Piotroski score of 9, and the company’s revenue has increased by 6.79 percent from Rs. 3,444 crore in FY23 to Rs. 3,678 crore in FY24. The net profit reached Rs. 348 crore in FY24, which has grown by 83.16 percent as compared to FY23.
In terms of return ratios, the company’s ROCE and ROE should be 10.6 percent and 10.4 percent, respectively. The debt-to-equity ratio of the company is to be 0.12x, which shows the company is almost debt-free. Prakash Industries Limited’s EPS is to be Rs. 19.6.
Prakash Industries Limited (PIL) was founded in 1980 and headquartered in New Delhi. The company is a diversified company engaged in the manufacturing of steel products, power generation, and mining. The company produces a wide range of steel products and also generates power to support its operations.
4. Grauer & Weil (India) Limited
With a market capitalization of Rs. 4,679.21 crores, Grauer & Weil (India) Limited’s share price is currently trading at Rs. 103.20 per share, down by 0.34 percent from its previous close of Rs. 103.55.
The company has a Piotroski score of 9, and the company’s revenue has increased by 8.36 percent from Rs. 981 crore in FY23 to Rs. 1,068 crore in FY24. The net profit reached Rs. 146 crore in FY24, which has grown by 29.20 percent as compared to FY23.
In terms of return ratios, the company’s ROCE and ROE should be 26.1 percent and 19.6 percent, respectively. The debt-to-equity ratio of the company is to be 0.01x, which shows the company is almost debt-free. Grauer & Weil (India) Limited’s EPS is to be Rs. 3.53.
Grauer & Weil (India) Limited was founded in 1957 and manufactures surface finishing solutions like electroplating chemicals and lubricants. The company also runs engineering operations and manages a mall business, offering a diverse range of services.
Written By – Nikhil Naik
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