Fundamentally strong companies can be of a variety of solid businesses that help them stay resilient, even in tough market conditions. While other companies’ stocks may suffer during a market downturn, the stocks of these strong companies typically perform much better.
Before investing in stocks, it’s important to follow a research checklist. Start by reviewing the company’s financial statements, including the balance sheet, income statement, and cash flow statement. It’s also crucial to analyse the company’s competition within its industry to understand its position in the market. Assess the stock’s valuation to determine if it’s reasonably priced and worth investing in. In this article, we have listed some of the best fundamentally strong stocks in 2024.
Name | Market Cap (₹ in crore) | PE Ratio | 1Y Return (%) | Net Profit Margin (%) | Return on Equity (%) | Debt to Equity |
Bharat Electronics Ltd | 2,28,686.43 | 57.39 | 95.1 | 19.03 | 26.37 | 0 |
State Bank of India | 7,67,249.58 | 11.44 | 39.69 | 11.28 | 16.72 | 0 |
ICICI Bank Ltd | 9,28,724.43 | 20.99 | 30.01 | 18.75 | 18.02 | 0 |
HDFC Bank Ltd | 14,22,020.18 | 22.2 | 13.26 | 15.7 | 16.86 | 0 |
Maruti Suzuki India Ltd | 3,49,925.35 | 25.94 | 7 | 9.23 | 16.84 | 0 |
Note: The best fundamentally strong stocks list provided here is as of December 10, 2024. The stock selection for fundamentally strong stocks is sorted as per 1-year return and conducted with these criteria:
Established in 1954, Bharat Electronics Ltd specialises in producing and delivering electronic systems and equipment for the defence sector. The company also maintains a modest presence in the civilian market.
BEL’s total orders for the current financial year have reached ₹8,194 crore. In Q2 FY25 results, Bharat Electronics reported a revenue of ₹4,583.41 crore, up from ₹4,198.77 crore in Q1 FY24 (June 2024). The company’s net profit for the quarter rose to ₹1,091.27 crore, compared to ₹776.14 crore in the previous quarter.
Key metrics:
State Bank of India (SBI), a Fortune 500 company, is a leading Indian multinational and public sector bank. Headquartered in Mumbai, it is India’s largest and oldest bank, with a history spanning over 200 years.
SBI has successfully raised ₹50,000 crore through domestic bonds in FY25. In Q2 FY25 results, the company reported a revenue of ₹1,13,870.56 crore, up from ₹1,11,525.98 crore in Q1 FY25 (June 2024). The company’s net profit for the quarter increased to ₹18,331.44 crore, compared to ₹17,035.16 crore in the previous quarter.
Key metrics:
ICICI Bank is India’s second-largest private sector bank, providing various financial products and services to individuals, small businesses, and corporates.
The business banking portfolio grew by 30% compared to last year and 10.7% compared to the previous quarter. Similarly, the corporate portfolio increased by 11.8% year-on-year and 4.9% quarter-on-quarter.
In Q2 FY25 results, the company reported revenue of ₹40,537.38 crore, up from ₹38,995.78 crore in the June 2024 quarter. Its net profit for the same period stood at ₹11,745.88 crore, an increase from ₹11,059.11 crore in the previous quarter.
Key metrics:
HDFC Bank Limited, commonly known as HDFC, is an Indian bank and financial services company based in Mumbai. It is the largest private sector bank in India by assets and ranks as the world’s tenth-largest bank by market value as of May 2024.
In April 2024, HDFC Bank’s market value reached $145 billion, making it the third-largest company listed on Indian stock exchanges.
In Q2 FY25 results, the company reported a revenue of ₹74,016.91 crore, showing a slight increase compared to ₹73,033.14 crore in Q1 FY25. Net profit for the quarter stood at ₹16,820.97 crore, up from ₹16,174.75 crore in the previous quarter.
Key metrics:
Maruti Suzuki is now the leading player in India’s passenger vehicle market. By production and sales volume, it is also the largest subsidiary of SMC, which holds a 56.28% equity stake in the company.
Over the next 6-7 years, Maruti plans to launch more than 10 new models, including 6 electric and hybrid vehicles.
For the Q2 FY25 results, the company reported a revenue of ₹37,202.80 crore, up from ₹35,531.40 crore in June 2024. Its net profit for the quarter stood at ₹3,069.20 crore, a decrease from ₹3,649.90 crore in the previous quarter.
Key metrics:
Nifty 50
As of December 11, 2024, the Nifty 50 stands at 24,650.55, marking a gain of 2,908.65 points or 13.38% since the beginning of the year. Compared to the same date last year, the index has risen by 3,654.90 points, translating to an impressive 17.41% annual growth.
Over the past month, the Nifty 50 has shown a modest gain of 510.70 points, equivalent to a 2.12% rise. In the last 6 months, the index has gained 1,387.15 points, a 5.96% increase, highlighting steady growth in the latter half of 2024. Over the past 5 years, the Nifty 50 has soared by 12,565.30 points, reflecting a staggering 103.96% increase, showcasing the index’s long-term growth potential.
BSE Sensex
As of December 11, 2024, the BSE Sensex, one of India’s key stock market indices, stands at 81,566.77, recording an impressive gain of 9,294.83 points or 12.86% since the start of the year.
Over the past month, the index has risen by 2,070.62 points, equivalent to a 2.60% increase. In the last 6 months, the Sensex has grown by 5,110.18 points, a gain of 6.68%, demonstrating consistent upward momentum. Compared to the same period last year, the index has surged by 11,638.24 points, marking a 16.64% increase, underscoring strong annual growth. Over the past 5 years, the Sensex has climbed a staggering 40,557.06 points, reflecting a nearly 98.90% growth, highlighting its long-term investment potential.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Dec 6, 2024, 4:33 PM IST
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