5 Best fundamentally Strong Stocks In India

05-08-2022 by News Desk

Fundamentally Strong Stocks In India: Investing is a game of creating wealth for the future, but to do so choosing the right companies becomes one of the most important factors in investments.

To get higher chances of returns we have to analyze the company fundamentally, here we have listed the Top 5 fundamentally Strong Stocks In India

5 Best fundamentally Strong Stocks In India

5 Best fundamentally Strong Stocks In India

Before investing anywhere else Consider these 5 Best fundamentally Strong Stocks In India:

Reliance Industries

Fundamentally Strong Stocks In India: Reliance Industries Limited is an integrated oil and gas sector company. The total valuation (market value) of the company is ₹17,62,930 crore. The price of one share of the company is ₹ 2,605.95 in the BSE market and ₹ 2,606.90 in the NSE market. Reliance Industries Limited was established in the year 1973.

As per the report provided by the company, the total income for the last year stood at Rs 3,50,689 crore and the total sales stood at Rs 3,35,978 crore. The company’s net profit stood at Rs 30,903 crore. Reliance Industries Limited has paid a tax of Rs -5,254 crore in the current year.

PROS

It is being expected from the company to give good quarter

CONS

Company has a low return on equity of 8.61% for last 3 years.
Dividend payout has been low at 9.52% of profits over last 3 year

Tata Consultancy Services

Fundamentally Strong Stocks In India: Tata Consultancy Services Limited (TCS) is an IT consulting and software sector company. The total valuation (market value) of the company is ₹12,15,152 crore. The price of one share of the company is ₹3,320.95 in the BSE market and ₹3,321.75 in the NSE market. Tata Consultancy Services Limited was established in the year 1995.

As per the report provided by the company, the total income for the last year stood at Rs 1,39,388 crore and the total sales stood at Rs 1,31,306 crore. The company’s net profit stood at Rs 33,260 crore. Tata Consultancy Services Ltd has paid a tax of Rs-6,366 crore in the current year.

PROS

Company is going to be debt free soon.
Company has a good return on equity (ROE) track record: 3 Years ROE 39.99%
Company has maintained a good dividend payout of 56.35%

CONS

Stock is trading at 13.64 times its book value
The company’s sales growth over the past five years is 10.20%.

HDFC Bank

Fundamentally Strong Stocks In India: HDFC Bank Limited (HDFC Bank) is a banking sector company. The total valuation (market value) of the company is ₹7,23,274 crore. The price of one share of the company is ₹ 1,302.90 in the BSE market and ₹ 1,304.00 in the NSE market. HDFC Bank Limited was established in the year 1994.

As per the report provided by the company, the total income for the last year stood at Rs 1,38,073.47 crore and the total sales stood at Rs 1,14,812.651 crore. The company’s net profit stood at Rs 26,257.315 crore. HDFC Bank Ltd has paid a tax of Rs -10,498.018 crore in the current year.

PROS

Company’s profit growth over last 5 years is 20.06% CAGR

CONS

Stock is trading at 3.45 times its book value
Company has a low-interest coverage ratio.
Contingent liabilities of Rs.1020028.80 Cr.
Company can capitalize the interest cost
Earnings include another income of Rs.31758.99 Cr.

Infosys

Fundamentally Strong Stocks In India: Infosys Technologies Limited (Infosys) is a company in the IT consulting and software sector. The total valuation (market value) of the company is ₹6,17,856 crore. The price of one share of the company is ₹ 1,468.70 in the BSE market and ₹ 1,468.40 in the NSE market. Infosys Technologies Limited was established in the year 1981.

As per the report provided by the company, the total income for the last year stood at Rs 82,275 crore and the total sales stood at Rs 79,047 crore. The company’s net profit stood at Rs 15,543 crore. Infosys Technologies Limited has paid a tax of Rs -3,881 crore in the current year.

PROS

Company is going to be debt free soon.
Company has a good return on equity (ROE) track record: 3 Years ROE 27.24%
Company has maintained a good dividend payout of 54.29%

CONS

Stock is trading at 8.20 times its book value
Promoter holding is low: 13.11%

Hindustan Unilever

Fundamentally Strong Stocks In India: Hindustan Unilever Limited (Hindustan Unilever) is a company in the personal products sector. The total valuation (market value) of the company is ₹5,59,214 crore. The price of one share of the company is ₹ 2,380.05 in the BSE market and ₹ 2,379.80 in the NSE market. Hindustan Unilever Limited was established in the year 1933.

As per the report provided by the company, the total income for the last year stood at Rs.39,518 crore and the total sales stood at Rs.38,785 crore. The company’s net profit stood at Rs 6,738 crore. Hindustan Unilever Limited has paid a tax of Rs-2,465 crore in the current year.

PROS

Company is going to be debt free soon.
Company has a good return on equity (ROE) track record: 3 Years ROE 28.42%
Company has maintained a good dividend payout of 96.35%

CONS

Stock is trading at 11.40 times its book value
The company’s sales growth over the past five years is 9.60%.
Promoter holding has decreased over the last 3 years: -5.29%

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