While the pandemic and its consequent impact on the economy, industry, and companies continue to unfold, there is merit in looking at historical data to analyse the performance of portfolios characterised by key fundamental attributes.
GROWTH (sales, EBITDA, PAT, and EPS);
RETURN (ROE, ROCE, ROOA, Delta ROE, Delta ROCE, and Delta ROOA);
MARGIN (EBITDA, EBIT, PAT, Delta EBITDA, Delta EBIT, and Delta PAT);
CASH FLOW (FCF growth and CFO & FCF yield);
FINANCIAL LEVERAGE (net debt/equity) to draw insights on how the fundamental based portfolios performed over the last 21 years (FY00 to FY20) and also how they coped with economic cycles.
The Final list of stocks is among the top 5 ranks in each market cap category that have been rated “Buy” or “Accumulate”.
Large caps: Lupin, Siemens, Info Edge, Indigo, Cipla
Mid Caps: PI Industries, IPCA Lab, Bata India, Torrent Power, Narayana Hrudayalaya
Small Caps: Strides Pharma Science, Dhanuka Agritech, V-mart Retail, Dixon Technologies, Mahindra Logistics