Stock to Buy Now in 2024: In today’s volatile market, where fluctuations seem to be the norm, finding stocks that offer both potential for growth and are available at discounted prices can be like discovering hidden gems. In this article, we delve into three such companies whose stocks are currently witnessing a significant correction, presenting investors with an opportune moment to enter the market at lower price points.
As we navigate through the dynamic landscape of the stock market, it’s essential to identify stocks with strong fundamentals and promising financials. The current market conditions have led to a dip in the share prices of these companies, creating an attractive buying opportunity for investors seeking long-term gains.
Best Stock to Buy Now in 2024
We’ll explore the business operations, fundamentals, and financial health of these companies to gauge their potential for delivering robust returns in the long run. By analyzing these aspects, investors can make informed decisions about strengthening their portfolios and maximizing profits from the stock market.
So, let’s explore the 3 Best Stock to Buy Now in 2024 at Discount Prices. Let’s take a closer look at the top 3 Stocks to Buy Now in 2024 to keep on your watchlist.
Deepak Fertilizers & Petrochemicals
1. Strong Financial Performance:
DFPCL has demonstrated impressive financial performance over the years, with a 49.7% Compound Annual Growth Rate (CAGR) in profit over the last 5 years.
The company’s Return on Capital Employed (ROCE) stands at a commendable 25.8%, indicating efficient utilization of capital to generate profits.
2. Attractive Valuation:
With a Market Capitalization of ₹6,525 Crores and a current stock price of ₹518, DFPCL presents an attractive valuation proposition for investors.
The stock’s Price to Earnings (P/E) ratio of 13.5 suggests that it is trading at a reasonable multiple relative to its earnings potential.
3. Consistent Growth in Key Metrics:
DFPCL has witnessed consistent growth across various financial metrics. The company’s Revenue and Operating Profit have shown steady uptrends, reflecting the strength of its business operations.
Over the last 10 years, DFPCL has achieved a Compounded Sales Growth rate of 16% and a Compounded Profit Growth rate of 26%.
4. Strong Fundamentals:
DFPCL boasts a healthy balance sheet, with a Debt to Equity ratio that indicates prudent financial management.
The company’s Dividend Yield of 1.93% provides additional income for investors, enhancing the attractiveness of the stock.
5. Positive Market Sentiment:
DFPCL enjoys favorable investor sentiment, with consistent institutional holdings and a growing shareholder base.
Despite short-term fluctuations, the stock has delivered impressive long-term returns, with a 5-year Stock Price Compound Annual Growth Rate (CAGR) of 33%.
MTAR Technologies
Financial Performance: MTAR Technologies exhibits robust financial indicators, portraying a healthy balance sheet and a track record of consistent growth. With a market capitalization of ₹6,214 Crores and a current price of ₹2,016, MTAR Technologies presents an attractive opportunity for investors.
Profit Growth: The company has demonstrated an impressive profit growth of 79.9% CAGR over the last 5 years, reflecting its efficiency and profitability in operations. This sustained growth trajectory positions MTAR Technologies favourably in the market.
Quarterly Results: Analyzing its quarterly results, MTAR Technologies has shown a steady increase in sales, with a notable surge in operating profit margins. This growth trend indicates the company’s resilience and adaptability to market dynamics, further reinforcing its investment appeal.
Return on Capital Employed (ROCE) and Return on Equity (ROE): MTAR Technologies boasts impressive ROCE and ROE figures, standing at 22.2% and 17.9%, respectively. These metrics underscore the company’s efficient utilization of capital and its ability to generate returns for shareholders.
Future Prospects: Anticipating a good quarter ahead, MTAR Technologies is poised for continued success, driven by its strong fundamentals and strategic initiatives. The company’s focused approach towards innovation and expansion bodes well for its future growth trajectory.
Shareholding Pattern: MTAR Technologies maintains a balanced shareholding pattern, with promoters holding a significant stake alongside institutional and retail investors. This diversified ownership structure instills confidence in the company’s governance and management practices.
Ramkrishna Forgings
1. Strong Financial Performance:
Ramkrishna Forgings has demonstrated consistent growth over the years, with a market capitalization of ₹13,341 Crores, reflecting its substantial presence in the market.
The company’s stock price has shown resilience, trading at ₹738, with a healthy high/low range of ₹815/₹245, showcasing stability and potential for growth.
2. Impressive Operational Metrics:
The stock’s Price/Earnings (P/E) ratio stands at 42.2, indicating a favourable valuation compared to its earnings, making it an attractive proposition for investors seeking growth opportunities.
With a Book Value of ₹85.4 and a Dividend Yield of 0.27%, Ramkrishna Forgings offers investors a solid foundation and potential for income generation.
The Return on Capital Employed (ROCE) and Return on Equity (ROE) at 18.5% and 20.6%, respectively, signify efficient utilization of resources and shareholder value creation.
3. Robust Growth Trajectory:
Ramkrishna Forgings has delivered remarkable profit growth of 21.1% CAGR over the last five years, showcasing its ability to capitalize on market opportunities and drive sustainable expansion.
The company’s median sales growth of 20.4% over the past decade underscores its resilience and adaptability in evolving market conditions.
Notably, the debtor days have improved significantly from 130 to 88.6 days, reflecting enhanced efficiency in receivables management and cash flow optimization.
4. Promising Quarterly Results:
Ramkrishna Forgings’ quarterly results demonstrate consistent performance and growth across various product segments, with sales reaching ₹1,058 Crores in December 2023.
The operating profit margin (OPM) has been maintained above 20%, indicating operational efficiency and effective cost management strategies.
5. Strong Balance Sheet and Shareholding Pattern:
The company’s balance sheet exhibits stability and strength, with prudent capital allocation and manageable debt levels.
The shareholding pattern reflects confidence among institutional investors, with promoters holding a significant stake of 43.15% and increasing FII participation, signalling trust in the company’s growth potential.
The article “3 Best Stock to Buy Now in 2024 at Discount Prices” is intended for informational purposes only. The information provided in this article is based on the research analyst’s YouTube 3 Best Stock to Buy Now in 2024 list and should not be considered as financial advice.
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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Sharedhan. We advise investors to check with certified experts before making any investment decisions.
