5 beaten down stocks with strong fundamentals poised to make a comeback in 2024
fundamentally strong stocks that took a hit due to falling profit margins. These stocks are market leaders in their respective industries and have a competitive edge over their peers. They could potentially stage a comeback in 2024.
Take a look… First on the list is Polyplex Corporation. Polyplex manufactures polyester films for packaging, electrical and other industrial applications. The company is an industry leader with a market share of about 25% in Thailand and Turkey and around 10% in India, the US, and Indonesia.
In the last one year, the company’s shares have fallen around 39%. The primary reason behind this fall is poor quarterly results owing to high input costs and demand disruptions in the overseas market. Add to this the constant selling by promoters and one could make a compelling case for the decline.
However, with softening input prices, the company is expected to showcase an improved financial performance. In the last five years, its revenue has grown at a compound annual growth rate (CAGR) of 10.4% driven by volume growth. The net profit has grown at a CAGR of 1.1% during the same time.
The company's return on equity (RoE) and return on capital employed (RoCE) stand at 17.7% and 19.3%, respectively. It also has low debt on its books, having a debt-to-equity ratio of 0.1x and an interest coverage ratio of 21.2x. The company has a healthy track record of being generous to its investors, with a five-year average dividend payout of 35.4% and a dividend yield of 2%.
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