Best Fundamentally Strong Stocks in Sep 2025: BSE Ltd, HAL and More Based on 5Y CAGR

Investing in fundamentally strong stocks is a time-tested strategy that appeals to both seasoned investors and long-term wealth builders. These stocks belong to companies with solid financials, consistent earnings, sustainable business models, and competent management.

This approach is rooted in fundamental analysis, which helps identify companies that are likely to perform well over the long haul, regardless of short-term market fluctuations. In this article, we explore the best fundamentally strong stocks in India based on 5-year CAGR for Sep 2025.

Best Fundamentally Strong Stocks for Sep 2025 – Based on 5 Year CAGR

Note: The best Fundamentally Strong Stocks list for Sep 2025 sorted based 5-Year CAGR and selected based on positive free cash flow, net margin and zero debt/equity ratio as of Sep 2, 2025

Overview of Best Fundamentally Strong Stocks in Sep 2025

BSE Ltd

Bombay Stock Exchange (BSE Ltd) is an Indian Stock Exchange in Mumbai. The company facilitates a market for trading in equity, currencies, debt instruments, derivatives, and mutual funds. BSE reported a robust 59% YoY increase in quarterly revenue, reaching ₹958.4 crore. This surge was largely fueled by a sharp rise in transaction charges, which jumped to ₹737.5 crore, up from ₹400.1 crore in Q1FY25 and ₹611.7 crore in Q4FY25.

Key Metrics:

•  Return on Capital Employed (ROCE): 46.6%
• Return on Equity (ROE): 36%

Hindustan Aeronautics Ltd

Hindustan Aeronautics is involved in the business of Manufacture of Aircraft and Helicopters and Repair, Maintenance of Aircraft and Helicopters. HAL reported a 3.7% YoY decline in consolidated net profit for the June quarter, falling to ₹1,383.77 crore from ₹1,437.14 crore in the corresponding period last year. Despite the dip in profit, the company’s revenue rose by 10.8% to ₹4,819.01 crore, driven by strong execution of existing orders. Looking ahead, HAL has laid out a capital expenditure plan of ₹14,000–15,000 crore over the next five years.

Key Metrics:

•  ROCE: 26.1%
• ROE: 33.9%

Tata Investment Corporation Ltd

Tata Investment Corporation Ltd is primarily engaged in the business of investment in listed and unlisted equity shares, debt instruments and mutual funds, etc. of companies in a wide range of industries. During Q1FY26, Tata Investment Corporation reported an 11.6% year-on-year (YoY) increase in consolidated profit after tax (PAT) at ₹146.30 crore, compared to ₹131.07 crore in the same quarter last year.

Revenue from operations also saw a modest uptick, rising 2.1% YoY to ₹145.46 crore, up from ₹142.46 crore in Q1FY25, reflecting steady performance in its core investment activities.

Key Metrics:

•  ROCE: 1.21%
• ROE: 1.02%

Also Read: Top Mutual Funds for September 2025 That Delivered Highest Returns in the Last 10 Years

Conclusion

Investing in fundamentally strong stocks offers a reliable pathway to long-term financial growth and stability. By prioritising quality over hype, investors can build a resilient portfolio that weathers market cycles and delivers steady returns.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.