CNBC-TV18 brings you the A-List comprising of fundamentally strong companies. These have been chosen after examining criteria‘s like quality, growth and leverage.
In the uncertain economic and market environment, it makes sense for investors to stick to high-quality companies that are most well positioned to grow.
In a special series called the A-List, CNBC-TV18 researchers evaluated thousands of stocks on parameters such as growth, leverage and management quality to come up with what they believe are most fundamentally sound companies.
Here are the four that the team discovered, for Part 1 of the series.
CNBC-TV18’s first pick for the day is Container Corporation, picked because of its clean balance sheet, high market share in container movement business and able to expand capacity. What makes Concor interesting is the positive outlook on it due to GST expectations, pick up in volumes and construction of the Dedicated Freight Corridor. The company’s topline is increasing at a fast pace and the books have no traces of debt.
The second A-list company for the day is Amara Raja. Currently, the company’s stock is trading at its highest peak. The company reported strong set of June quarter earnings with margins touching 18.2 percent, highest since the fourth quarter of 2010. The company is debt free with steady cash inflows and its stock trading at 29 times FY17 estimates.
Another company with steady growth rate is Kaveri Seed. The company’s debt is Rs 1.4 crore, a marginal amount compared to its Rs 753 crore net worth as of FY15. The company’s FY12 to FY15’s revenue CAGR growth has been 46 percent and profit CAGR is 63 percent. Kaveri Seed has positive cash inflows and balance in its books.
Infosys is leading the IT sector basket with its stable management and cash reserves. The company’s growth has been stable at 10-15 percent with good margins expected in future due to rupee depreciation. The company has exposure to global market, especially developed economies. Infosys’s stock hit its high in mid-August this year, but has come off by 8.5 percent currently from it.The Great Diwali Discount!
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First Published on Aug 27, 2015 11:26 am