Fundamental Ratios play a very important part in finding an
equity investment of your risk appetite. I collected the fundamental ratios
data for all the listed companies on NSE ( and BSE ) and tried to listout few stocks that should
be considered for further analysis
Criteria 1 : P/E Ratio < 10 , SALES > 800 crores
Query1
|
|||
company
|
pe
|
eps
|
Sales ( in crores )
|
National Wind Power Corporation Ltd.
|
3.27
|
-0.01
|
975.34
|
Nagarjuna Fertilisers & Chemicals
Ltd.(Old)
|
6.88
|
2.27
|
818.08
|
Trident Ltd.
|
5.14
|
6.33
|
913.26
|
National Steel and Agro Industries
Ltd.
|
3.27
|
6.84
|
975.34
|
Monnet Ispat & Energy Ltd.
|
8.4
|
10.12
|
893.74
|
Sintex Industries Ltd.
|
8.92
|
10.77
|
998.14
|
Prakash Industries Ltd.
|
4.91
|
12.88
|
811.01
|
Uflex Ltd.
|
9.16
|
17.91
|
825.84
|
Diamond Power Infrastructure Ltd.
|
6.17
|
20.12
|
805.04
|
Escorts Ltd.
|
7.48
|
20.53
|
992.63
|
Kothari Products Ltd.
|
3.88
|
63.79
|
934.64
|
Mahanagar Telephone Nigam Ltd.
|
0.25
|
124.21
|
856.02
|
We see that MTNL has very strong fundamentals. IF we look at
the stock price over the last 10 years
Click here for Image
This stock was unperturbed by even the 2008 Financial
crisis. Such a stock is indeed very handy to have in your portfolio. Besides it
also gave a 10% dividend
Another stock to look out for is Escorts Limited. This is a
company based on agricultural machinery. With agriculture certain to get a big
push from the government, it will be a good buy. One thing to note from its
graph ( in fact all the graphs of its peers ) is that these stocks did not get
affected much in the 2008 crisis. However, post 2008, people started putting in
a lot of money on these stocks, leading
to a bubble. These stocks are a very good buy at times of a crisis
Click here for Escorts Chart
Click here for Jain Irrigation Chart
Now if we go to the other side of the spectrum, we see
companies with good P/E ratios but very low EPS too. These are extremely stable
stocks with little volatility over a large period of time. A take a look at “National
Steel and Agro Industries” reveals that the stock price graph over the last 10
years will reveal that it has stayed put at the 20 price mark. However the
stable performance translates to huge dividends . National Steel and Agro gave
a dividend of 150%
Criteria 2 : P/E Ratio > 700
Query1
|
||||
company
|
P/E
|
EPS
|
SALES
|
Dividend %
|
Jain Irrigation Systems Ltd.
|
994.16
|
0.08
|
1
|
25
|
Futuristic Offshore Services &
Chemical Ltd.
|
930.11
|
-0.13
|
2
|
30
|
Future Retail Ltd.
|
930.11
|
0.12
|
2
|
30
|
Visagar Polytex Ltd.
|
917.31
|
0.6
|
18.59
|
10
|
20 Microns Ltd.
|
793.61
|
0.04
|
81.32
|
10
|
- Visagar went on NSE on Jun 2013
- 20 Microns in 2009
