10 Fundamentally Strong Stocks for 2019

Here are our Top 10 Fundamentally Strong stocks which have decent valuations and have a good year-on-year financial performance.

Published on 20 March 2019, by Amit Goenka.

1. Bhageria Industries Ltd.Bhageria Industries Ltd

Bhageria Industries has been in the business of manufacturing dyes & dyes intermediates since 1989 and is also into generation and distribution of solar power.
Plants are located in Vapi and Tarapur. Major products include Vinyl Sulphone, H-Acid and Gamma Acid. 50% of the production accounts for exports.
We added at Rs 275. According to current fundamentals, it has a fair valuation at Rs 520 and anything above Rs 620 would make it expensive. Stop Loss on closing basis for long term investment is 204. (If there is no change in fundamentals of the company, then this stop loss should not be used).
Market Cap: 602 Cr
Promoter Holding: 70.48%
Pledged Shares: 0.00%
Debt/Equity: 0.03 (Very low debt)
Price to Book Value: 1.8
Stock P/E: 8.24
Industry P/E: 14.1
Return on Equity: 21.97%
PEG: 0.27
Mutual Funds Holding: None
2017-2018 High: 452.85
52 Week Low: 207.95
Website: http://www.bhageriagroup.com


2. Bharat Dynamics Ltd.Bharat Dynamics Ltd

Bharat Dynamics Limited (BDL) is a government of India enterprise under the administrative control of the Ministry of Defence. Established in 1970, it designs and manufactures guided weapon systems.
We added at Rs 295. According to current fundamentals, it has a fair valuation at Rs 630 and anything above Rs 750 would make it expensive. Stop Loss on closing basis for long term investment is 220. (If there is no change in fundamentals of the company, then this stop loss should not be used).
Market Cap: 5279 Cr
Promoter Holding: 87.75%
Pledged Shares: 0.00%
Debt/Equity: -0.09 (Zero debt)
Price to Book Value: 2.53
Stock P/E: 9.96
Industry P/E: 26.05
Return on Equity: 25.36%
Mutual Funds Holding: 2.74% by HDFC MF
2017-2018 High: 425
52 Week Low: 225
Website: http://www.bdl-india.in


3. DCM Shriram Ltd.DCM Shriram Ltd

DCM Shriram’s business portfolio comprises primarily of two types of businesses.
1. Agri-Rural Business which includes Urea & SSP fertilizers, Sugar, Farm inputs marketing such as DAP, Crop care Chemicals, Hybrid Seeds, etc.
2. Chlor-Vinyl Business which includes Caustic Soda, Chlorine, Calcium Carbide, PVC resins, PVC Compounds, Power and Cement. It also has a value-added business Fenesta Building Systems.
We added at Rs 417. According to current fundamentals, it has a fair valuation at Rs 545 and anything above Rs 675 would make it expensive. Stop Loss on closing basis for long term investment is 290. (If there is no change in fundamentals of the company, then this stop loss should not be used).
Market Cap: 6569 Cr
Promoter Holding: 66.53%
Pledged Shares: 0.00%
Debt/Equity: 0.11 (Low debt)
Price to Book Value: 2.19
Stock P/E: 10.49
Industry P/E: 19.37
Return on Equity: 20.50%
PEG: 0.48
Mutual Funds/FIIs/FPIs Holding: <1% by MFs, 7.29% by LIC
2017-2018 High: 628
52 Week Low: 237
Website: http://www.dcmshriram.com


4. Deccan Cements Ltd.Deccan Cements Ltd

Deccan Cements is a South-India based cement producer. It has been in the business since 1979 and is engaged in the manufacturing of cement in the form of clinker, portland cement, slag cement, and is also into the generation of electricity.
We added at Rs 420. According to current fundamentals, it has a fair valuation at Rs 460 and anything above Rs 560 would make it expensive. Stop Loss on closing basis for long term investment is 320. (If there is no change in fundamentals of the company, then this stop loss should not be used).
Market Cap: 588 Cr
Promoter Holding: 56.19%
Pledged Shares: 0.00%
Debt/Equity: -0.03 (Zero debt)
Price to Book Value: 1.59
Stock P/E: 14.56
Industry P/E: 36.21
Return on Equity: 10.92%
PEG: 0.37
Mutual Funds Holding: 14.17% by L&T, HSBC, UTI, IDFC
2017-2018 High: 660
52 Week Low: 336
Website: https://deccancements.com/index.php


5. GNA Axles Ltd.GNA Axles Ltd

GNA Axles is a leading manufacturer of automotive transmission components with plants across 3 locations in Punjab. Its primary products are Rear Axle Shafts, Spindles & Splined Shafts. It sells in both the domestic and foreign market.
We added at Rs 335. According to current fundamentals, it has a fair valuation at Rs 540 and anything above Rs 670 would make it expensive. Stop Loss on closing basis for long term investment is 243. (If there is no change in fundamentals of the company, then this stop loss should not be used).
Market Cap: 727 Cr
Promoter Holding: 65.86%
Pledged Shares: 9.36%
Debt/Equity: 0.29
Price to Book Value: 1.97
Stock P/E: 11.20
Industry P/E: 53.57
Return on Equity: 17.63%
PEG: 0.19
Mutual Funds Holding: 9.6% by HDFC, Sundaram
2017-2018 High: 579
52 Week Low: 257.1
Website: http://gnagroup.com


6. Gujarat Alkalies & Chemicals Ltd.Gujarat Alkalies & Chemicals Ltd

Gujarat Alkalies and Chemicals is a multi-product chemical manufacturing Company, which produces around 36 different products and is one of the largest producers of caustic soda in India.
We added at Rs 505. According to current fundamentals, it has a fair valuation at Rs 1040 and anything above Rs 1240 would make it expensive. Stop Loss on closing basis for long term investment is 365.(If there is no change in fundamentals of the company, then this stop loss should not be used).
Market Cap: 3738 Cr
Promoter Holding: 46.28%
Pledged Shares: 0.00%
Debt/Equity: 0.02 (Low debt)
Price to Book Value: 0.98
Stock P/E: 5.17
Industry P/E: 30.17
Return on Equity: 18.86%
PEG: 0.34
Mutual Funds Holding: 4.54% by ABSL, BNP Paribas
2017-2018 High: 935
52 Week Low: 416.25
Website: http://www.gacl.com


7. KNR Constructions Ltd.KNR Constructions Ltd

KNR Constructions is an infrastructure development company, primarily in the business of construction of highways, flyovers, bridges, sewage works, and irrigation projects since 1997.
We added at Rs 251. According to current fundamentals, it has a fair valuation at Rs 365 and anything above Rs 435 would make it expensive. Stop Loss on closing basis for long term investment is 195. (If there is no change in fundamentals of the company, then this stop loss should not be used).
Market Cap: 3704 Cr
Promoter Holding: 55.38%
Pledged Shares: 0.00%
Debt/Equity: 0.05 (Low debt)
Price to Book Value: 2.84
Stock P/E: 14.36
Industry P/E: 31.51
Return on Equity: 19.76%
PEG: 0.37
Mutual Funds Holding: 28.69% by 6 MFs
2017-2018 High: 349
52 Week Low: 165
Website: http://www.knrcl.com


8. Matrimony.com Ltd.Matrimony.com Ltd

Matrimony.com offers online matchmaking services in India. Its flagship matchmaking services are BharatMatrimony, EliteMatrimony, and CommunityMatrimony.
We added at Rs 585. According to current fundamentals, it has a fair valuation at Rs 630 and anything above Rs 765 would make it expensive. Stop Loss on closing basis for long term investment is 423. (If there is no change in fundamentals of the company, then this stop loss should not be used).
Market Cap: 1319 Cr
Promoter Holding: 50.30%
Pledged Shares: 0.00%
Debt/Equity: -0.97 (Zero debt)
Price to Book Value: 6.96
Stock P/E: 25.38
Return on Equity: 30.60%
PEG: 0.68
Mutual Funds/FIIs/FPIs Holding: >27% by FII/FPIs
2017-2018 High: 1024
52 Week Low: 364
Website: https://www.matrimony.com


9. Redington (India) Ltd.Redington (India) Ltd

Redington is a leading distributor of IT, Telecom, Consumer and Lifestyle products. It has brand partners like Apple, Lenovo, Microsoft, HP, Acer, etc.
We added at Rs 102. According to current fundamentals, it has a fair valuation at Rs 170 and anything above Rs 210 would make it expensive. Stop Loss on closing basis for long term investment is 64. (If there is no change in fundamentals of the company, then this stop loss should not be used).
Market Cap: 3825 Cr
Promoter Holding: 0.00%
Pledged Shares: N/A
Debt/Equity: 0.26
Price to Book Value: 1.01
Stock P/E: 7.14
Return on Equity: 12.04%
PEG: 0.92
Mutual Funds/FIIs/FPIs Holding: 13.49% by SBI, HDFC, 34.31% by FPIs, 38.07% by OCBs
2017-2018 High: 209.9
52 Week Low: 64
Website: https://redingtongroup.com/india


10. Shreyans Industries Ltd.Shreyans Industries Ltd

Shreyans Industries Limited is a multi-unit group engaged in the manufacturing of paper. Major consumers of the company’s products include Major Publishers, Copy Manufacturers, Job Printers, Various states Text Book Boards, Exporters of Notebooks & Diaries, Printing & Stationary Dept., Railways, P&T Dept., Security Press etc.
We added at Rs 156. According to current fundamentals, it has a fair valuation at Rs 205 and anything above Rs 370 would make it expensive. Stop Loss on closing basis for long term investment is 113. (If there is no change in fundamentals of the company, then this stop loss should not be used).
Market Cap: 221 Cr
Promoter Holding: 47.26%
Pledged Shares: 0.00%
Debt/Equity: -0.13 (Zero debt)
Price to Book Value: 1.27
Stock P/E: 5.23
Return on Equity: 24.18%
PEG: 0.22
Mutual Funds Holding: None
2017-2018 High: 245
52 Week Low: 114.40
Website: http://www.shreyansgroup.com


Stop losses levels are on closing basis for long term investment only. Which means that if on any give day the stock closes below this price then you should exit it the next day. Alternatively, if the stock is trading below the stop loss level till 3.25 pm, then you can exit it the same day. These are large stop losses and meant to be used only if the fundamentals of the company change. If there is no change in fundamentals, then these should not be used.

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Disclaimer: Trading or Investing in equities is risky. Information provided on this website does not constitute investment advice. There is no guarantee of profits, and we will not be responsible for any losses incurred or decisions made based on the information provided here. Past performance is not an indicator of future returns.