The year 2019 is one of the most vital years in Indian economic history. The market has its biggest rally over the past 20 years. Investors become active with their investments capital. It is being expected to see a further higher growth in both NIFTY and SENSEX. So, this is the correct time to invest your money in the right direction. Our scanning report says there are top 8 fundamentally strong stocks of 2019. So, let’s have a look into this.
What is Meant by Fundamentally Strong Stocks?
Basically, fundamental analysis is the measurement of the intrinsic value of a security. The analysis or measurement is to be done on economic and financial factors. From economy and industry conditions to company management, each and every aspect is analyzed here. In simple words, it is a 360-degree check on various parameters.
Top 8 fundamentally Strong Stocks of 2019 for the Richest
First, let’s have a look at the list of the stock list which I’ve chosen based on fundamental, technical analysis and our scanning report.
- Arman financial services
- Aimco pesticides
- Black rose industries
- Caplin point labs
- Chambal fert&chems
- AstraZeneca Pharma India
- Dhampursugar mills
- Bharat Rasayan
Arman Financial Services
The company Arman Financial Services is an RBI (Reserve Bank of India) registered A category Non-Banking Finance Company. The Asset Finance Company (NBFC-AFC) along with rural and semi-rural financing at the center of its business model, Arman provides affordable simple financing hassle-free loan products. AFSL generally offers two major financial services: Two-wheeler and three-wheeler finance. Group-Based Microfinance is offered by Namra Finance Ltd, a wholly-owned subsidiary of AFSL. RBI Registered Namra Finance is also an NBFC-Microfinance Institution.
The above is a glimpse of the company’s fundamentals. Now, before looking into the technical matter, let’s have a look at the financial ratios.
As per our latest report (27th Sept), the company’s share closed at the level of 524.45. As per the quarterly consolidated statement, it’s market cap is 365.69 Cr. P/E (price to earnings) 12.76, industry p/e 35.25. The company’s EPS (earnings per share) and book value are 41.48 and 113.95 respectively.
As the chart has shown the technical graph is towards the uptrend mode. Apart from this, the volume of the share is pretty good. The share’s EPS strength, price strength, buyers demand are on a positive level and group rank is also good.
AIMCO is a Global Entity which was founded by Mr. Pradeep Dave. The company has its roots in the agrochemicals industry. In the field of agrochemical manufacturing, formulations, and marketing, Aimco is one of the pioneer companies in India. It has extensive experience and expertise spanning over 5 decades. The company manufactures a large array of high-quality technical grade pesticides, fungicides, herbicides along with other chemicals.
Moreover, AIMCO as a brand is sold in more than 40 countries worldwide. And it has registrations in well over 100 countries. Domestically and internationally Aimco department continuously develops and generates data with different GLP approved laboratories for their various specialized formulations.
The current closing market price of the company’s share (as of 27th Sept) was 124.15. The company’s consolidated report says it has 116.76. Apart from this, BV (book value) and Price/Book are 36.62 and 3.33 respectively. Quarterly PE (price to earnings) is negative. Now, go through the technical part of Aimco.
In the above chart, the graph falls to some extent but the overall strength of the company is good enough. Its EPS (earnings per share) was above 90 and ranked great. Price strength is also above 80 levels. Now, look at the buyers demand that is at a high level.
Black Rose Industries
Black Rose Industries Ltd established in the year 1990 as the name of Asia Fab Limited. It is a textile manufacturing company. At present, The company forms of three main divisions chemicals, acrylamide, and textiles. The chemical division of the company is engaged in the import, distribution along with export of a wide range of specialty and performance chemicals. The acrylamide division operates India’s first one and only acrylamide manufacturing plant. The textile division of Black Rose manufactures fabrics and made-ups for industrial applications. The company also has a fully owned subsidiary in Japan known as B.R. Chemicals Co., Ltd., Japan.
Black Rose Industries share price on 27th Sept was at the level of Rs.77.50. The market cap of the company is 366.94. Its book value is 9.48 and Price/book value 7.59. PE (price to earnings) is negative.
This is an exceptionally positive chart among the above fundamentals. From EPS strength, price strength to buyers demands and group rank, all are at a high level. The stock carries high volatility. From there, we can guess about the demand of the particular share. The trend is also uptrend and in a rising mode.
Caplin Point Labs
The popularity of Caplin Point is primarily attributed to its unique business model. Starting off as an SME (small-medium enterprise), the company decided at an early stage that the conventional export style would mean diminishing margins and reduced opportunities for expansion. the company had taken the unique step of creating last-mile logistical solutions for its exclusive distributors. Their distributors are across Latin America and various parts of Africa.
This way, the company is able to generate adequate revenue as well as a cash flow to remain debt-free. And they also continue to invest in state of the art manufacturing facilities from internal accruals. One of the main reasons for the popularity is attributed to the wide range of products offered across diverse geographies. The company has over 2000 products licenses across the world with a further 300 in the pipeline for emerging markets.
FINANCIAL Fundamental Data
Its last closing price (as of 27th Oct) was 425.85. Fundamentally, the company has 3,233.73 Cr. market cap as per their consolidated statement. PE (price to earnings), BV, industry PE are 19.25 , 56.21 , 27.50 respectively. The company’s EPS (earnings per share) is 22.07.
Technically, the stock is strong enough. Its EPS strength, price strenth and buyers demand are good. Though group rank is poor as per the overall market situation it is the best time to buy. As you can see volume is too good as buyers interest is high.
Chambal Fertilisers and Chemicals
In India, Chambal Fertilisers and Chemicals Ltd. accounts for nearly 15 percent of the total Urea produced. So, more than two decades Chambal has contributed to the food security of the country with responsibility. Its three hi-tech Urea plants are located at the place Gadepan in Kota district of Rajasthan. The three plants have an installed annual production capacity which is about 3.4 million MT of Urea. It contributes to major chunk of Urea consumed in leading Agri states in India. Moreover, the plants were commissioned in 1994, 1999 and 2019 respectively. These plants use state-of-the-art special technology from Denmark, Italy, the United States and many more.
Let’s have a look at the fundamentals. It is a 6,655.16 Cr market cap company. Book value of the company is 66.86. Industry PE (price to earnings) ratio and price/book are 10.29 and 2.39 respectively. Dividend percentage is 20.
The previous closing price of the stock was 159.05. Technically, the stock carries a moderate level. Besides this, its EPS strength, price strength, buyers demand are at a good level.
More Fundamentally Strong Stocks
Apart from the above five stocks, there are three more stocks which are both fundamentally and technically strong. These are
- AstraZeneca Pharma India
- Dhampursugar mills
- Bharat Rasayan
AstraZeneca Pharma India
AstraZeneca India was established in the year 1979. Its headquartered at Bengaluru, Karnataka. The company is an operating company. It covers the manufacturing, sales as well as marketing activities of the company in India. Astra is a listed company with a subsidiary of AstraZeneca Plc, UK. It has a workforce of over more than 1500 employees across the country.
They are committed to delivering life-changing medicines to patients through innovation and excellence in development and commercialization. Besides the above, the company has an innovative portfolio in crucial areas of healthcare which include cardiovascular and & metabolic diseases, oncology and respiratory.
The share’s closing point was at the level of 2232.65 level (as per the record of 27th Sept). Its EPS, price strength and buyers demand all are in high scales. The market cap of the company 5,750.00. P/E and EPS are 82.41 and 27.83 respectively. The technical chart is Uptrending and good enough to invest.
Dhampur Sugar Mills
Dhampur Sugar Mills was the first Indian company that manufactures sulphurless refined Sugar. The company has the ability to produce refined sugar during the season. Here, the sugar from the sugarcane is first used to manufacture raw sugar. And then refined to produce refined sulphurless sugar. In the off-season when coupled with cogeneration the company uses raw sugar procured from outside to produce refined sugar.
The last traded price of 27th Sept was 222.90. The technicals and fundamentals are good enough to invest. It is showing that its EPS, price strength are good. Buyers demand is also at a high level. Volume is rising and at a compact level.
The company was established four decades ago. It has come a long way and today it happens to be a US$ 167 Million industry. Its three constituent companies such as Bharat Rasayan Ltd., Bharat Insecticides Ltd., and BR Agrotech Ltd. the company has established a strong presence in domestic as well as international markets. All of their Group companies are ISO 9001:2008 and ISO 14001:2004 certified.
Technically the chart reflects enough strength. The volume of the company is also good. Buyers demand carries a good position.
So, these are some of the best fundamentally strong stocks of 2019. To get more updates on the topic, stay with us and follow the blog post on a regular basis. It is advisable that after following the analyzing report, you do your own analysis prior to investment.