Fundamentally strong stocks are those that exhibit robust financial health, characterised by stable earnings, low debt levels, strong management, and competitive advantages. These stocks are typically seen as safer investments, especially during market downturns, such as the current situation in the Indian stock markets.
In the context of a downturn in the Indian stock markets, adding fundamentally strong stocks to one’s portfolio can provide a cushion against volatility. Such stocks are generally more resilient during economic challenges, offering stability and potential for capital appreciation over time.
Here are a few fundamentally strong stocks under Rs. 100 to watch in this market
Suzlon Energy Limited
With a market cap of Rs. 72,377.7 crores, the stock moved up by around 3.5 percent to close in the green on BSE at Rs. 53.03 on Friday. In Q3 FY25, the company’s revenue from operations increased by around 90.7 percent to Rs. 2,975 crores, while the net profit grew by nearly 91 percent YoY to Rs. 388 crores. In terms of key financial metrics, Suzlon has a Return on Equity (RoE) of 28.8 percent and a return on capital employed (RoCE) of 24.9 percent, with a debt-to-equity ratio of 0.06.
Suzlon Energy’s revenue from operations grew at a CAGR of around 25 percent between FY21 and FY24, while the net profit jumped by 85 percent CAGR over the same period. Suzlon Energy Limited is primarily engaged in the business of manufacturing, project execution and operation and maintenance service (OMS) of Wind Turbine Generators (WTGs) and the sale of related components of various capacities.
NBCC (India) Limited
With a market cap of Rs. 24,070.5 crores, the stock moved up by around 2.5 percent to close in the green on BSE at Rs. 89.15 on Friday. In Q3 FY25, the company’s revenue from operations increased by around 16.6 percent to Rs. 2,827 crores, while the net profit grew by nearly 24.6 percent YoY to Rs. 142 crores.
In terms of key financial metrics, NBCC has a Return on Equity (RoE) of 24.8 percent and a return on capital employed (RoCE) of 32 percent, with zero debt. NBCC’s revenue from operations grew at a CAGR of around 14 percent between FY21 and FY24, while the net profit jumped by 20 percent CAGR over the same period.
NBCC (India) Limited, one of the largest realty CPSEs in India, is a Navratna Enterprise under the Ministry of Housing and Urban Affairs, operating in three major segments: Project Management Consultancy, Real Estate and Engineering Procurement & Construction (EPC). As of January 2025, the company’s consolidated order book stood at Rs. 1 lakh crores.
NMDC Limited
With a market cap of Rs. 55,335.7 crores, the stock moved up by around 3 percent to close in the green on BSE at Rs. 62.94 on Friday. In Q3 FY25, the company’s revenue from operations increased by around 21.4 percent to Rs. 6,568 crores, while the net profit grew by nearly 27 percent YoY to Rs. 1,880 crores.
In terms of key financial metrics, NMDC has a Return on Equity (RoE) of 23.9 percent and a return on capital employed (RoCE) of 30.9 percent, with a debt-to-equity ratio of 0.15. NMDC’s revenue from operations grew at a CAGR of around 22 percent between FY21 and FY24.
NMDC Limited is engaged in the business of exploration and production of iron ore along with diamond, production and sale of sponge iron and generation and sale of wind power.
Written by Shivani Singh
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