Investors should focus on financially strong stocks trending at a discount, as they offer a unique opportunity for growth when market conditions stabilise.
These stocks provide solid long-term potential, minimising risks while ensuring steady returns. For the industry, this approach fosters market stability and attracts more investment, driving economic growth.
1. IIFL Securities Ltd
IIFL Securities, founded in 1995 and headquartered in Mumbai, is a prominent financial services firm in India. As part of the IIFL Group, it offers a diverse range of services, including stock broking, wealth management, and investment advisory. The company caters to both retail and institutional clients and provides products like mutual funds and insurance. Known for its technology-driven approach, IIFL Securities has built a strong presence across India with an extensive network of branches.
It is highly regarded for its research and analysis, helping clients make informed investment decisions. The company has established itself as a leader in India’s financial sector through its commitment to innovation and customer service.
IIFL Securities’s revenue from operations has increased by 62.9 percent from Rs. 1,361 crore in FY23 to Rs. 2,218 crore in FY24. The company’s net profit has increased from Rs. 513 crore in FY23 to Rs. 250 crore in FY24, which is up by 150 percent.
The company exhibited moderate sales growth of 52% (TTM) with profit growth of 115% (TTM). Return on equity was 32% last year, showing moderate profit generation. With a market capitalisation of Rs. 9,706 crores, IIFL Securities’s share price closed at Rs. 331.4 per equity share. Share is currently trading at a discount of 29% from it’s 52W high.
2. Thomas Cook (India) Ltd
Thomas Cook India, founded in 1881, is a major player in the Indian travel and tourism industry. Based in Mumbai, the company offers a wide array of travel-related services, including foreign exchange, leisure and corporate travel, and visa services. With a presence across over 233 locations in India, Sri Lanka, and Mauritius, it serves both individual and corporate clients. As a subsidiary of Fairfax Financial Holdings, Thomas Cook has expanded its offerings through strategic acquisitions.
The company’s services include MICE (meetings, incentives, conferences, exhibitions), travel insurance, and holiday packages, making it a one-stop solution for travelers. Its long-standing reputation and comprehensive service offerings have solidified its position in the market.
Thomas Cook’s revenue from operations has increased by 44.6 percent from Rs. 5,048 crore in FY23 to Rs. 7,299 crore in FY24. The company’s net profit has increased from Rs. 10 crore in FY23 to Rs. 271 crore in FY24, which is up by 2,610 percent.
The company exhibited moderate sales growth of 26% (TTM) with profit growth of 214% (TTM). Return on equity was 14% last year, showing moderate profit generation. With a market capitalisation of Rs. 9,154 crores, Thomas Cook’s share price closed at Rs. 198.39 per equity share. Share is currently trading at a discount of 26% from it’s 52W high.
3. Lemon Tree Hotels Ltd
Lemon Tree Hotels Ltd, established in 2002 and headquartered in New Delhi, is one of India’s largest hotel chains catering to the mid-priced segment. The company operates a variety of brands such as Lemon Tree Premier, Lemon Tree Hotels, Red Fox Hotels, and Aurika Hotels & Resorts, offering a wide range of accommodations from economy to luxury. Known for its focus on providing high-quality, affordable accommodations, Lemon Tree has rapidly expanded across India.
The company is aggressively pursuing its growth plans, aiming to increase its room inventory in the coming years. Its commitment to excellence in hospitality has earned it a significant place in India’s competitive hotel industry.
Lemon Tree Hotel’s revenue from operations has increased by 22.4 percent from Rs. 875 crore in FY23 to Rs. 1,071 crore in FY24. The company’s net profit has increased from Rs. 141 crore in FY23 to Rs. 182 crore in FY24, which is up by 21.3 percent.
The company exhibited moderate sales growth of 22% (TTM) with profit growth of 17% (TTM). Return on equity was 17% last year, showing moderate profit generation. With a market capitalisation of Rs. 9,304 crores, Lemon Tree Hotel’s share price closed at Rs. 121.63 per equity share. Share is currently trading at a discount of 25.5% from it’s 52W high.
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4. Force Motors Ltd
Force Motors Ltd, founded in 1958 and based in Pune, Maharashtra, is a well-established name in India’s automotive sector. The company manufactures a wide range of vehicles, including commercial vehicles, utility vehicles, and agricultural tractors. Known for its popular models such as the Force Gurkha, Force Motors focuses on producing high-quality vehicles with innovative features.
The company is committed to maintaining its competitive edge through advanced manufacturing processes. Its products, including vans, buses, and tractors, cater to diverse market needs, and Force Motors continues to strengthen its position in the Indian automotive industry with a focus on quality and innovation.
Force Motors’s revenue from operations has increased by 39 percent from Rs. 5,029 crore in FY23 to Rs. 6,992 crore in FY24. The company’s net profit has increased from Rs. 134 crore in FY23 to Rs. 338 crore in FY24, which is up by 152 percent.
The company exhibited robust sales growth of 24% (TTM) with profit growth of 156% (TTM). Return on equity was 19% last year, showing moderate profit generation. With a market capitalisation of Rs. 8,863 crores, Force Motors’s share price closed at Rs. 6,944.9 per equity share. Share is currently trading at a discount of 34% from it’s 52W high.
5. Cochin Shipyard Ltd
Cochin Shipyard Ltd (CSL), established in 1972, is a leading shipbuilding and maintenance facility in India. Located in Kochi, Kerala, it specialises in constructing various vessels, including oil tankers, bulk carriers, and passenger ships. CSL plays a pivotal role in the Indian maritime industry by providing shipbuilding and repair services for both commercial vessels and defence ships for the Indian Navy.
The company also offers offshore construction services, including platforms for oil drilling. With its strong focus on quality and operational efficiency, CSL has garnered numerous accolades and continues to drive advancements in India’s shipbuilding and maritime sectors.
Cochin Shipyard’s revenue from operations has increased by 56.4 percent from Rs. 2,330 crore in FY23 to Rs. 3,645 crore in FY24. The company’s net profit has increased from Rs. 334 crore in FY23 to Rs. 813 crore in FY24, which is up by 143 percent.
The company exhibited robust sales growth of 56% (TTM) with profit growth of 112% (TTM). Return on equity was 17% last year, showing moderate profit generation. With a market capitalisation of Rs. 8,863 crores, Cochin Shipyard’s share price closed at Rs. 6,944.9 per equity share. Share is currently trading at a discount of 45% from it’s 52W high.
Written By Fazal Ul Vahab C H
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
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