Stocks to Buy Before Year-End 2023

Stocks to Buy Before Year-End
Stocks to Buy Before Year-End

by Tanushree Jaiswal Last Updated: Sep 07, 2023 - 05:09 pm 524 Views

Looking for fundamentally strong stock is like looking for the strong and healthy tree which is expected to grow long and consistently. So just like the tree as a investor first we should be concern about the Root of the tree, which this case is about the fundamentals of the company.

Why to Buy These Stocks?

The following stocks are not only fundamentally sound stocks but also overlooked and undervalued for the time being and these stocks belong to businesses that will survive and expand regardless of the state of the market. Even when the market is difficult and other equities are underperforming, these stocks will do well. They operate efficiently in their business because of some of the innate characteristics.
They construct their solid basis on elements like their financial resources, top-notch management, and in-demand goods or services. Also included below are the top Indian stocks with solid fundamentals and outlook for 2023.

Key Consideration before Investing in Poised Growth Stocks with Positive Outlook

1) Financial Health and Stability: Assess the company's financial statements, including its balance sheet, income statement, and cash flow statement. 
2) Earnings Consistency: Examine the company's earnings track record over several quarters or years. 
3) Competitive Advantage: Consider whether the company has a sustainable competitive advantage or moat that sets it apart from its competitors. 
4) Management Quality: Look for experienced leaders with a successful track record and shareholder-friendly practices.
5) Industry and Market Trends: Understand the industry the company operates in and its growth prospects. Analyse broader market trends that could impact the company's performance.
6) Valuation: Assess whether the stock is reasonably priced based on various valuation metrics such as price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and others compared to peers and historical averages.
7) Dividend History: If you are interested in dividends, consider the company's history of dividend payments, dividend growth, and dividend yield.
8) Research and Due Diligence: Read financial news, company reports, analyst opinions, and any available research reports.
9) Risk Assessment: Understand the risks associated with the company and its industry. 
10) Investment Horizon: Whether you're looking for short-term gains or long-term growth. Your strategy might differ based on your goals.
11) Exit Strategy: Decide under what conditions you would sell the stock.
12) Long-Term View: Be patient and avoid making hasty decisions based on short-term market fluctuations.

Methodology of Analysis

1) Price to Earning is more than Industry PE 
2) Average Return on Capital Employed of 5Years is more than 20%
3) Sales growth 5Years is more than 15% 
4) Profit growth 5Years is more than 20%
5) Market Capitalization is more than 500 Cr.
6) Debt to equity is less than 0.3 
7) PEG Ratio <1.5

Overview of the Stocks to Buy Before Year-End

1) EKI Energy Services Ltd

Key Measures As of FY'23
Compounded Sales Growth (TTM) (%) 844
Compounded Profit Growth (TTM) (%)   1955
Price/Earnings (x)     3.46
Price/Book (x) 1.9
ROCE (%)      236
ROE (%)      176
Return on assets (%) 127
Dividend Payout (%)   4
Dividend Yeild (%)     1.14
Cash Flow from Operation (Y-o-Y) (%)     87.5
Promoters Holding     73.41


In the strategic outlook, the company aims to:

1) Diversify its credit supply base and maintain quality standards.
2) Strengthen its value proposition for end customers in complement to offset offerings.
3) Pursue backward integration to enhance access and quality control.

Overall, the company is well-positioned for continued growth and impact in its diverse business verticals.

2) Fine Organic Industries Ltd

Key Measures As of FY'23
Compounded Sales Growth (TTM) (%) 25
Compounded Profit Growth (TTM) (%)   46
Price/Earnings (x)     26.4
Price/Book (x) 9.6
ROCE (%)      65.3 
ROE (%)      49.4 
Return on assets (%) 40.6 
Dividend Payout (%)   4
Dividend Yeild (%)     0.19 
Cash Flow from Operation (Y-o-Y) (%)     623.88
Promoters Holding     75


The company holds a dominant position in its industry:

1) It is a pioneer and the largest manufacturer of oleo chemical-based additives in India, with a strong global presence.
2) Utilizes a fully automated production facility and operates multiple production sites.
3) Distinguishes itself as one of the few global players in the specialty food emulsifiers market.
4) Holds a significant position in the polymer additives industry on a global scale.
5) Stands out as one of the leading companies with proprietary technology for manufacturing green additives.
This strong market position and technological innovation indicate a promising outlook for the company's continued growth and competitiveness.

3) West Coast Paper Mills Ltd

Key Measures As of FY'23
Compounded Sales Growth (TTM) (%) 25
Compounded Profit Growth (TTM) (%)   120
Price/Earnings (x)     3.88
Price/Book (x) 1.5
ROCE (%)      61.8  
ROE (%)      44.8  
Return on assets (%) 29.6  
Dividend Payout (%)   7
Dividend Yeild (%)     1.73  
Cash Flow from Operation (Y-o-Y) (%)     1.094755
Promoters Holding     56.53


The outlook for the company could improve if it continues to achieve sustained growth in its top-line revenue and margins. This would contribute to enhancing its debt coverage metrics and bolstering its liquidity profile.

4) Shilchar Technologies Ltd

Key Measures As of FY'23
Compounded Sales Growth (TTM) (%) 44
Compounded Profit Growth (TTM) (%)   179
Price/Earnings (x)     23.1
Price/Book (x) 5.9
ROCE (%)      53.8  
ROE (%)      42.8  
Return on assets (%) 42.8  
Dividend Payout (%)   9
Dividend Yeild (%)     0.15  
Cash Flow from Operation (Y-o-Y) (%)     145
Promoters Holding     65.85


The company's outlook is appearing "Stable" for long-term. This is attributed to the advantages stemming from STL's well-established track record and an enhanced order book position, which positions the company to maintain its operational performance effectively in the medium term.

5) Apar Industries Ltd

Key Measures As of FY'23
Compounded Sales Growth (TTM) (%) 42
Compounded Profit Growth (TTM) (%)   125
Price/Earnings (x)     26.4
Price/Book (x) 4.2
ROCE (%)      51.1 
ROE (%)      32.3 
Return on assets (%) 80.6 
Dividend Payout (%)   24
Dividend Yeild (%)     0.82 
Cash Flow from Operation (Y-o-Y) (%)     186
Promoters Holding     60.64


Sales of electric vehicles surpassed 10 million in 2022, and their growth is exponential. Through 2023, the momentum is anticipated to continue. A positive forecast for EV sales is supported by market dynamics and legislative initiatives in important auto markets.
Based on current regulations and company goals, the worldwide projection for the percentage of electric car sales has climbed to 35% in 2030, up from less than 25% in the prior outlook.

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About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.


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