How do you define fundamentally sound stocks? Well, we have picked up 7 solid solid stocks that have a low debt to equity ratio of less than 2; a net profit growth of more than 100 per cent and a p/e ratio of less than 25. The promoters shares pledged are also below 25 per cent, making these stocks sound on various parameters.
We have picked these stocks from the recent research report done by Equity Research Firm, Dynamic Levels.
It is a leading manufacturer of pesticides, seeds and allied products. It is also a part of the Tata Group.
Rallis India has seen a growth in net profits of 445 per cent for the quarter ending June 30, 2016. It has a small debt to equity ratio of 0.08 per cent.
Another reason that makes this company a solid fundamental pick is reasonable valuations.
The stock is quoting at a p/e of just 17 times. Not a bad bet at Rs 219.
Gujarat Mineral Development Corporation has seen a solid growth in net profits of 127 per cent for the quarter ending June 30, 2016. The company is a debt free company and the p/e ratio is just 12 times. All this makes the company a good fundamentally sound stock.
The company mines a host of minerals including buaxite. The shares are currently traded at Rs 92.
DCM Shriram is very much like the other companies mentioned above. It has a small debt to equity ratio of 0.47.
The company reported a superb earnings growth of 226 per cent for the quarter ended June 30, 2016. The company is a well diversified company that manufacturers urea, sugar, farm solutions, Fenesta Building Systems etc.
A p/e of just 11 makes this a great stock fundamentally. Apart from this the promoters shares are not pledged. The stock was last traded at Rs 194.
Kiri Industries Limited (KIL) is one of the largest manufacturer and exporter of wide range of Dyes, Intermediates and Chemicals from India.
The stock is trading at a p/e of just 3 times and has a low debt to equity ratio of 0.46 times. The company reported a growth in net profits of 184% for the quarter ending June 30, 2016.
The stock at Rs 286, remains reasonable valued.
Deepak Nitrite produces and supplies organic, inorganic and fine chemicals.
For the quarter ending June 30, 2016, the company reported a growth in net profits of 230 per cent. The debt to equity ratio for the company is just 0.91 and the p/e ratio is 11.
All this makes the stock among the fundamentally sound stock. The shares were last trading at Rs 220 on the NSE.
GE Shipping is another stock that remains a fundamentally good pick. The company reported a good growth in net profits of 310 per cent for the quarter ending June 30, 2016.
The p/e ratio is just 6 for the stock and no shares are pledged by the promoters. The debt to equity ratio is also a small 0.60 per cent.
The shares were last trading at Rs 357 on the National Stock Exchange.
Aro Granite reported a 150 per cent growth in net profits, for the quarter ending June 30, 2016.
The p/e ratio is just 12 and no shares of the promoters are pledged, which is such a good sign. The debt to equity ratio is 0.73 times.
Aro Granite was last trading at Rs 70.
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