New Delhi: After reaching their record highs, stock market indices BSE Sensex, NSE Nifty have been on the downside for the past several months. It may be noted that several market experts opine that a falling market also brings investment opportunities for many investors. As the indices have declined, the prices of shares of several good companies have also dropped. The Sensex is down around 10 per cent from its highest level.
Value Research report mentioned that 62 per cent of BSE companies have recorded a decline in the last month, and 10 per cent are at their 1-year low. The firm has selected 15 companies which have strong business yet they are at a 52-week low. The share price of the firms have not recovered even more than 5 per cent from their 52-week low, despite having a market cap of over Rs 10,000 crore. The 5 year average ROE of these 15 stocks is above 15 per cent and the 4 year profit after tax has increased by more than 15 per cent. List of 10 stocks that have declined but have strong fundamentals:
AIA Engineering
52 Week Minimum Price: Rs 3,282
Decline from 52 week high: -30.5%
5 year average ROE: 16.4%
4 year PAT growth: 17.8%
According to the report, there is a decline of 19 per cent in AIA Engineering’s sales, there is a decrease in orders and there is also pressure from global economic factors. But the company’s balance sheet is debt-free and has cash of Rs 3,212 crore.
Aptus Value Housing
52 week minimum price: ₹286
Decline from 52 week high: -28.2%
5 year average ROE: 16.1%
4 year PAT growth: 30.5%
Asian Paints
52 week minimum price: Rs 2,257
Fall from 52 week high: -30.7%
5 year average ROE: 28.2%
4 year PAT growth: 18.9%
According to the report, there has been a 7 per cent decline in revenue and 42 per cent decline in profits in Q2 FY25. But Asian Paints is a strong brand and 12% of its revenue is coming from new products. If demand improves, there is a possibility of a rise.
Astral
52 week minimum price: Rs 1,532
Decline from 52 week high: -36.7%
5 year average ROE: 18.5%
4 year PAT growth: 21.6%
Berger Paints
52 week minimum price: ₹438
Fall from 52 week high: -25.5%
5 year average ROE: 23.7%
4 year PAT growth: 15.6%
Birlasoft
52 week minimum price: ₹530
Decline from 52-week high: -37.0%
5 year average ROE: 15.9%
4 year PAT growth: 29.1%
In its report, Value Research mentioned that company has reported a decline in the operating margin and decrease in demand. However, the company has a cash-free, debt-free balance sheet of Rs 1,860 crore, investments in AI and cloud services, and 20 per cent of revenue is coming from digital platforms.
Coal India
52 week minimum price: Rs 368
Fall from 52 week high: -31.7%
5 year average ROE: 52.1%
4 year PAT growth: 22.3%
Tata Technologies
52 week minimum price: ₹870
Decline from 52 week high: -27.1%
5 year average ROE: 19.8%
4 year PAT growth 28.2%
Happiest Minds
52 Week Minimum Price: ₹693
Decline from 52 week high: -26.2%
5 year average ROE: 30.8%
4 year PAT growth: 36.4%
IRCTC
52 week minimum price: ₹762
Decline from 52 week high: -33.5%
5 year average ROE: 39.7%
4 year PAT growth: 21.3%
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.)
Value Research has mentioned 10 stocks which have dipped due to stock market fall but have strong fundamentals. The list of shares are – AIA Engineering, Asian Paints, Berger Paints, Astral, IRCTC, Aptus Value Housing, Birlasoft, Tata Technologies, Happiest Minds and Coal India. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
