Sensex fell more than 1045 points today to end at 51,495 while Nifty hit a new 52-week low at 15,360 with a loss of 331 points. Metal sector emerged as the worst hit. As the share market continues to witness volatility, it is important for investors to look for stocks that can offer strong return in long term. Below we have picked two stocks that are not only fundamentally strong but will offer good returns to investors.
1. Marico Ltd
It is a fundamentally strong stock. Investors are getting a good discount at the stock considering its current price of Rs 484 that has fallen from the high of Rs 607. Stocks like these do not witness frequent decline and if the price has fallen by nearly 20.26%, it is a great opportunity for investors to invest in the stock. It is important to see the fundamental of the stock. Its dividend yield is 1.91%, ROE (Return on Equity) is 36.58%, and ROCE (Return on Capital Employed) is 44.5%. The company is almost debt free. These are three important parameters that a retail investor must look for. It is also equally important to check if the company is consistently paying out dividend as it can be a stable source of income for investors. These parameters indicate that the company has a strong potential to give you good return in long term. If you look at the shareholding pattern, you will see that 59% are promoters, 8% are public, and 34% are institutional holding which indicate that this stock has investment from qualified investors and institutions. So, it indicates that investors should invest in this fundamentally strong stock to receive potential return in the longer run. If you add these stocks to your portfolio, they can give you good return.
Marico Dividend History: Marico has a good dividend track record as it has been regularly paying out dividend to investors for the last 5 years. For March 2022, the company paid out an equity dividend of Rs 9.25 per share.
Marico Ltd stock outlook: The current market price is Rs 424 apiece. The 52-week high and 52-week low is Rs 607 apiece and Rs 455 apiece.
About Marico Ltd: Marico Limited is one of India’s leading consumer goods companies operating in the global beauty and wellness categories. Marico nurtures leading brands across categories of hair care, skin care, edible oils, immunity boosting and healthy foods, male grooming, and fabric care, according to its official website.
2. Havells India Ltd
It is a large cap company. The current market price is Rs 1093 with a loss of 1.81%. The Stock has a P/E of 57.25. Its dividend yield is 0.69%. Return on Equity is 21% and Return on Capital Employed is 27.6%. These parameters indicate that the stock is fundamentally strong. The company is almost debt free and likely to give a good quarter. The consumer electronic good maker reported a 16% surge in its consolidated net profit to Rs 352 crore for the Q4 ending March 2022. The revenue from operation also jumped 32.55% to Rs 4,4426 crore for FY2022. These parameters indicate that investors can consider this stock to add to their portfolio for good return. The shareholding pattern indicates that 59.52% are promoters, 8.69% are public, and nearly 31% institutional holding.
Havells India Dividend history: The company has a good dividend track record and regularly declared dividend in the last 5 years. Earlier this year in March, the company has paid out a dividend of Rs 7.5 per share.
Stock Outlook: The current market price is Rs 1093 apiece. The 52-week high and 52-week low is Rs 1504 apiece and Rs 958 apiece, respectively.
About The Company: Havells India Limited is a leading Fast Moving Electrical Goods (FMEG) Company and a major power distribution equipment manufacturer with a strong global presence. Havells enjoys enviable market dominance across a wide spectrum of products, including Industrial & Domestic Circuit Protection Devices, Cables & Wires, Motors, Fans, Modular Switches, Home Appliances, Air Conditioners, Electric Water Heaters, Power Capacitors, Luminaires for Domestic, Commercial and Industrial Applications, according to its official website.
Investors are advised caution as the markets have become exceedingly volatile. There is a possibility that stocks could fall, thus eroding investor wealth. Neither Greynium Information Technologies, nor the author, would be responsible for any losses based on a decision reading the above article. Every effort has been made to provide accurate information and readers should understand the inherent risks before investing in the markets.