Fundamentally Strong Companies of India

This Article is all about the List of Fundamentally Strong Companies of India.

There are so many Fundamentally Strong Companies in India. So many people have false belief that only Blue chip Companies are the Fundamentally strong Companies such as Reliance, ONGC, SBI…etc…. But the reality is that there are so many Mid cap companies there in the Indian Market which are equally fundamentally strong.

So Here is a “List of Fundamentally Strong Companies of India” -

The Fundamentally strong companies are basically divided into 3 parts according to its Market Capitalization. Large Cap, Mid Cap & Small Cap. In this Article i will list only Large cap and Mid cap fundamentally strong Indian Companies….

Large Cap Fundamentally Strong Companies of India -

01) Reliance Industries

02) BHEL

03) Larsen & Toubro

04) Bharti Airtel

05) ICICI Bank

06) ONGC

07) SBI

08) TATA Power

09) HDFC

10) Infosys

11) Reliance Communications

12) TCS

13) HDFC Bank

Mid Cap Fundamentally Strong Companies of India -

01) Jai Prakash Associates

02) Welspun-Gujarat

03) Jain Irrigation

04) Divi’s Laboratories

05) Jindal Steel & Power

06) Lupin

07) Bank of Baroda

08) United Phosphorus

09) Kotal Mahindra Bank

10) Shiv-Vani Oil & Gas

11) Crompton Greaves

12) Punj Loyld

13) Siemens

So above is a List of some Fundamentally strong companies of India. The Fundamentals of these Indian Companies are time tested by various fund managers and Sophisticated Investors.

fundamentally strong stocks to buy

Buy low PE, high book value, high investments, high assets holdings stocks meeting one of the above criteria for example:

Jindal South West Holdings ( when its Sun Investment is listed in a year or so, JSWHL will cash out; that does not mean you wait two years to buy; Now is the time to buy while JSWHL has gone low from its peak)

MTNL (very high book value and land assets, investments, reserves etc whatever it takes it has)

Jhunjhunwala Va (constantly rising high income profits, dividend paying, small capital)

Cairn ( valuable assets in ground and might discover more oil; price is very attractive and better than most IPOs)

Usha Martin Infotech ( very high book value, going to be very big in eLearning field which it had given away to IIT Chennai in 2001)

Maars Software: High value land holdings,high book value I think one will do beter buying above kind stocks

Five Fundamentally Strong Stocks With PE Ratio Less Then Five

The current market meltdown has brought up some of the most attractive investment opportunities in the Indian markets. Its true that more correction cant be ruled out but even at present levels some stocks look very undervalued as compared to their future growth and earnings potential. Listed below are five fundamentally strong stocks which have a PE of less then five. These stocks can be good investments with a long term perspective.

1)Hindustan Zinc Ltd - PE ratio 4.66
2)Su-raj Diamonds & Jewellery Ltd - PE ratio 3.68
3)Jindal Saw Ltd - PE ratio 3.62
4)Jindal Photo Ltd - PE ratio 2.50
5)Ajmera Realty & Infra India Ltd - PE ratio 3.53

Note: All stocks with a low PE ratio need not be fundamentally strong stocks. PE ratio is just one of the parameters to consider while making an investment. The fundamentals and long term growth drivers is what matters the most or the company. The above listed stocks have low PE, strong fundamentals and also good future growth potential based on the industry they cater to.

Fundamentally Strong Stocks Stocks Trading at PE of Less then 5

Stocks With PE Less then Five:
The recent stock market carnage has spared not even fundamentally strong stocks. Thus, some very good stocks are trading at a PE of less then 5. It's true that forward PE always is a better indicator of valuations. But these stocks should not have very significant decline in earnings. So current low PE makes then attractive bets.

1)Financial Technologies (India) Ltd - PE ratio 3.22

2)Ruchi Soya Industries Ltd - PE ratio 3.98

3)Jindal Saw Ltd - PE ratio 2.23

4)Hindustan Zinc Ltd - PE ratio 3.48

5)Sterlite Technologies Ltd - PE ratio 3.81

Attractive Stocks in the Agriculture Sector:
This is one sector which will do very well the next time the markets make a upmove. That might be sometime away but slow accumulation on these stocks can be considered.

1)Jain Irrigation Systems Ltd

2)Kaveri Seed Company Ltd

3)Karuturi Global Ltd

Attractive Stocks in the Water Sector:
Two stocks which might be big companies of the future in the water related sector in my opinion are:

1)Subhash Projects & Marketing Ltd

2)Mount Everest Mineral Water Ltd

Should You buy in big numbers now:
If anyone does plan to buy any stock for long term also then he/she should buy only in small numbers. No one can say for sure that the stock markets have bottomed out or are even close to that. Yes some valuations are very attractive but it might get more attractive. So I would suggest to invest only 10-15% of the money allocated towards investment purpose in stocks now. For now capital preservation is the top priority.

Latest Comments by Merrill Lynch CEO:
Merrill Lynch Chief Executive John Thain said he did not expect the global economy to recover quickly from the credit crisis and that the environment more closely resembled 1929, the advent of the Great Depression, than recent slowdowns.

This maybe sums up the crisis we are in now. So every investment move should be made carefully and only invest money which you would not need in near term. Trying to make quick gains in short term will prove fatal in these market conditions.

Crude Oil falls to 19 month low. Good or Bad News?:
I would regard this fall in crude oil prices to a 19 month low as a bad news more then a good news. The simple reason being that it shows how fast the world economies are slowing down. This in turn has led to the sharp fall in demand and hence the proces for crude oil. So expect 2009 to be one of the worst years in terms of global GDP growth in recent times.

Marc Faber's Latest Comments on the Global Stock Markets and Economy:
Dr. Marc Faber in his latest interview with Bloomberg TV stated that the global stock markets are at historically low levels and can bounce from here. The rally could last from few days to weeks and it all depends on the nature of news inflow. But overall we are in for some stock market bounce back helped by the global money printing.

Marc Faber also said that at this point of time corporate bonds are more attractive then equities. According to him there is a sharp slowdown going on globally and all ompanies will cut on capital expenditure plans in the near future.