Deciding on which stock to invest in can be daunting – where do you begin? Though there are various aspects to take into account, the key fundamentals can be clustered into five factors: financial health, value for money, cash flow to investors future growth, and past performance. In this article, I’ve put together a list of companies that meet or exceed expectations in two or more areas, causing them to be attractive investments for all kinds of investors.
SJVN Limited (NSEI:SJVN)
SJVN Limited, together with its subsidiaries, engages in the generation and sale of power in India, Nepal, and Bhutan. Established in 1988, and headed by CEO Nand Sharma, the company employs 1,492 people and with the company’s market cap sitting at INR ₹118.29B, it falls under the large-cap stocks category.
SJVN has ample cash coverage over its short term liabilities, and its debt is adequately covered by its operating cash, portraying its strong financial capacity. In addition, SJVN’s share price is trading below its true value according to its price-to-equity ratio of 10.13x compared to its industry as well as the wider stock market, so potential investors can purchase the stock below its value. Dig deeper into SJVN here.
Granules India Limited (BSE:532482)
Granules India Limited manufactures and sells active pharmaceutical ingredients (APIs), pharmaceutical formulation intermediates, and finished dosages (FDs) in India and internationally. Formed in 1984, and currently run by Krishna Chigurupati, the company size now stands at 2,322 people and with the company’s market capitalisation at INR ₹20.26B, we can put it in the large-cap group.
532482 has sufficient cash and investments to meet its upcoming liabilities, and its total debt is well-covered by its cash flows, portraying its strong financial capacity. Also, 532482’s shares are now trading at a price below its true value based on its PE ratio of 14.54x, compared to the industry and wider stock market ratio, so potential investors can purchase the stock below its value. Continue research on Granules India here.
Cyient Limited (BSE:532175)
Cyient Limited provides geospatial, engineering design, information technology (IT) solutions, and data analytic services in India and internationally. Started in 1991, and currently headed by CEO Bodanapu Krishna, the company size now stands at 13,829 people and with the company’s market capitalisation at INR ₹83.74B, we can put it in the large-cap group.
532175’s previous bottom-line expansion of 17.92% in the prior year, beating the software industry’s growth of 11.86%, paints an buoyant picture for the company. 532175 has ample cash coverage over its short term liabilities, and its debt is adequately covered by its operating cash, which indicates its strong financial position. Last but not least, 532175’s sturdy growth in its dividend payments over time makes it one of the highest dividend payers in the market. Continue research on Cyient here.
For more fundamentally-robust companies with industry-beating characteristics to enhance your portfolio, explore this interactive list of big green snowflake stocks.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.