Fundamentally Strong Stocks On BSE – Best Stocks List, Meaning and More
Posted by : sachet | Tue Feb 04 2025
How would you feel when your investment portfolio is painted red during a bearish market sentiment? Have you ever thought about why this happens? This is because stocks with weak fundamentals are included in portfolios. Companies that do not operate on a strong foundation or fundamentals tend to lose a significant portion of their market value during unfavourable situations in the stock market, leading to losses.
But to ease your investment journey, we have compiled a list of 10 fundamentally strong stocks on BSE that can help you diversify your investment journey and create a robust portfolio. Refer to the table below for more information:
List of Fundamentally Strong Stocks on BSE
| Stocks | LTP (₹) | Market Capitalisation (in cr.) (₹) | 52-week High (₹) | 52-week Low (₹) |
| Nestle India Ltd. | 2,317.00 | 2,24,393.00 | 2,778.00 | 2,131.00 |
| Gillette India Ltd. | 8,72.00 | 28,446.00 | 10,699.00 | 6,191.00 |
| Tata Consultancy Services Ltd. | 4,069.00 | 14,73,918.00 | 4,592.00 | 3,592.00 |
| Page Industries Ltd. | 47,279.00 | 52,107.00 | 49,933.00 | 33,070.00 |
| IRCTC Ltd. | 773.00 | 61,827.00 | 1,148.00 | 736.00 |
| Trent Ltd. | 6,135.00 | 2,18,063.00 | 8,346.00 | 2,955.00 |
| Reliance Industries Ltd. | 1,245.00 | 16,85,249.00 | 1,609.00 | 1,202.00 |
| Bharat Electronics Ltd. | 274.00 | 2,00,222.00 | 340.00 | 172.00 |
| Tata Elxsi Ltd. | 6,406.00 | 39,926.00 | 9,083.00 | 5,920.00 |
| State Bank of India | 761.00 | 6,78,988.00 | 912.00 | 638.00 |
*Data updated as of 2nd January 2025
Overview of Best Fundamentally Strong Stocks To Buy
Nestle India Ltd.
Nestle India Limited was started as a NESTLE Anglo-swiss Condensed Milk Company (Export) Limited by importing and selling finished products in the Indian Market. Nestle set up its first factory in Moga, Punjab, in 1961. Currently, the company has Nine manufacturing facilities in India through which they manufacture and sell various products under different brand names. Nestle India’s brand portfolio includes Nescafe, KitKat, Munch, Maggie, Ceregrow, and A+ dairy products.
As of 3rd February 2025, Nestle India has a P/E and P/B ratio of 72.5 and 57.0, respectively. The company paid a dividend of Rs 3,105 crores last year and generated a net profit/loss of Rs. 3,363 crores for the trailing twelve months.
Gillette India Ltd.
Gillette India Ltd. is a personal grooming brand for men in India. It was incorporated in 1984 by Rajasthan through a joint promotion between the House of Poddar and Gillette Company U.S.A. and currently operates as a subsidiary of Proctor and Gamble. It started its operation by manufacturing stainless steel razor blades in India, and today, it has a cluster of products for men, including Gillette Fusions and Mach 3 razors, shaving gels, creams and after-shave lotions.
As of 3rd February 2025, Gillette India Ltd. has a P/E and P/B ratio of 63.7 and 29.6, respectively. The company paid a dividend of Rs 424 crores last year and generated a net profit/loss of Rs. 452 crores for the trailing twelve months.
TCS Ltd.
Tata Consultancy Services Ltd. was established on 1st April 1968. It is a TATA group company that offers IT, consulting, and business solution services across the globe. The services provided by TCS Ltd. include IT infrastructure services, engineering, BPO, business intelligence cloud services, and other IT-led services.
As of 3rd February 2025, TCS Ltd. has a P/E and P/B ratio of 30.0 and 14.4, respectively. The company paid a dividend of Rs 24,426 crores last year and generated a net profit/loss of Rs. 49,006 crores for the trailing twelve months.
Page Industries Ltd.
Page Industries Ltd. is situated in Banglore, India. It was established in 1984 to market and sell the famous sports and innerwear brand Jockey in India. Today, it is the exclusive licensee of Jockey Brand and Speedo International Limited. Page Industries has 50,000 plus retail stores in 1800 cities and towns.
As of 3rd February 2025, Page Industries Ltd. has a P/E and P/B ratio of 83.8 and 34.8, respectively. The company paid a dividend of Rs 413 crores last year and generated a net profit/loss of Rs. 621 crores for the trailing twelve months.
IRCTC Ltd.
IRCTC Ltd. stands for Indian Railway Catering and Tourism Corporation Limited, a Schedule ‘A’ company that works under the Ministry of Railways, Government of India (GOI). It was incorporated on 27th September 1999 and undertakes 4 business verticals – Catering and Hospitality, Internet Ticketing, Travel and Tourism and Packaged Drinking Water (Rail Neer).
As of 3rd February 2025, IRCTC Ltd. has a P/E and P/B ratio of 51.5 and 17.6, respectively. The company paid a dividend of Rs 520 crores last year and generated a net profit/loss of Rs. 1200 crores for the trailing twelve months.
Trent Ltd.
Trent Ltd. is a part of the TATA group and is engaged in the business of branded fashion, footwear, and accessories for all genders, along with a range of home furnishing and decor products. It was originally incorporated as Lakme Limited on 5th December 1952 and was renamed Trent Limited on 1st July 1988. Zudio and Westside are two of the most well-known retail stores under the Trent umbrella.
As of 3rd February 2025, Trent Ltd. has a P/E and P/B ratio of 162 and 47.2, respectively. The company paid a dividend of Rs 114 crores last year and generated a net profit/loss of Rs. 1,809 crores for the trailing twelve months.
Reliance Industries Ltd.
Reliance Industries is a privately owned company which was initially started as a Reliance Commercial Corporation in 1958 and was further renamed as Reliance Industries Limited in 1985 after the Initial Public Offering in 1977. The company is the most profitable private company in India and operates in various sectors such as Energy, Petrochemicals, Retail, Digital Services – JIO, Media & Entertainment and New Energy and New Material.
As of 3rd February 2025, Reliance Industries Ltd. has a P/E and P/B ratio of 24.4 and 2.06, respectively. The company paid a dividend of Rs 6,766 crores last year and generated a net profit/loss of Rs. 79,941 crores for the trailing twelve months.
Bharat Electronics Ltd.
Bharat Electronics Limited was established in 1954 to fulfil the electronics needs of the Indian Defence. It works under the Ministry of Defence and offers Radar & Fire and controls systems, Missile Systems, Communication & C4I Systems, Electronic Warfare & Avionics and many other specialised defence systems for the Indian army. BEL is also responsible for manufacturing the Electronic Voting Machines that turned out to be a game changer in the Indian elections since then
As of 3rd February 2025, Bharat Electronics Ltd. has a P/E and P/B ratio of 39.1 and 11.0, respectively. The company paid a dividend of Rs 1,608 crores last year and generated a net profit/loss of Rs. 4,992 crores for the trailing twelve months.
Tata Elxsi Ltd.
Tata Elxsi Limited is a TATA group company established and incorporated on 30th March 1989. The company is engaged in the business of providing technology services to a large set of clients across the globe. The services provided by the company include research, designing, product engineering and enterprise learning. Tata Elxsi currently employee 13000+ employees and is located at 36+ locations.
As of 3rd February 2025, Tata Elxsi Ltd. has a P/E and P/B ratio of 48.7 and 15.8, respectively. The company paid a dividend of Rs 436 crores last year and generated a net profit/loss of Rs. 809 crores for the trailing twelve months.
State Bank of India
State Bank of India is a Fortune 500 company. It is the biggest banking organisation in India, with a history of 200 years of operations serving more than 50 crore customers. It offers banking services such as ATMs, acceptance of deposits, advancement of loans and other essential services in every possible corner of the country.
As of 3rd February 2025, the State Bank of India has a P/E and P/B ratio of 8.82 and 1.63, respectively. The company paid a dividend of Rs 2,227 crores last year and generated a net profit/loss of Rs. 74,461 crores for the trailing twelve months.
Best Fundamentally Strong Stocks on BSE To Buy As Per 5-Year Return
| Stocks | LTP (₹) | Market Capitalisation (in cr.) (₹) | 5-year return (%) |
| Reliance Power Limited | 38.00 | 15,155.00 | 89.5 |
| Trident Limited | 31.00 | 15,803.00 | 38.7 |
| Indian Overseas Bank Limited | 49.00 | 92,638.00 | 38.6 |
| UCO Bank Limited | 42.00 | 50,011.00 | 23.2 |
| South Indian Bank Limited | 25.00 | 6,619.00 | 22.5 |
*Data updated as of 2nd January 2025
What are Fundamentally Strong Stocks on BSE?
Fundamentally strong stocks are equity shares that possess solid growth features for the long term, which are shown in their financial metrics. These shares have strong fundamentals, providing them stability and immense price appreciation capabilities even during bad market conditions. Fundamentally strong stocks BSE are equity shares of companies that are listed on the Bombay Stock Exchange (BSE) and are backed by solid fundamentals. These BSE-listed shares can be identified using various measures such as the Debt-to-Earnings (D/E) ratio, Price-to-earnings (P/E) ratio, or Earnings per Share (EPS).
The companies representing fundamentally strong stocks BSE have business with a robust business model, efficient management, and a large market share in their targeted customer segment.
To know more about the distinct aspect of company fundamentals, benefits, and identification of fundamentally strong stocks on BSE, keep reading the blog below:
What is the Bombay Stock Exchange (BSE)?
The Bombay Stock Exchange is the oldest and the first stock exchange in Asia and the tenth largest globally. It was established in 1875 by a cotton merchant, Premchand Roychand. BSE offers trading and other services for various instruments listed on the Indian financial markets. It is a marketplace for investors and companies wherein both parties perform transactions in debt, stocks, futures & options and other financial securities.
How to Invest in Fundamentally Strong Stocks on BSE
To invest in fundamentally strong stocks on BSE, you must follow the below-mentioned steps:
- Open a demat account The primary step is to identify the right stock broker for you and start your demat application process.
- Identify a fundamentally strong stock – Once your demat account is active and registered with a broker, the next step is to identify the right fundamentally strong stock on BSE.
- Invest in the chosen stock – The final step is to decide the price and quantity for which you want to invest in a fundamentally strong stock on BSE.
- Monitor your portfolio – The last step, but not the least, is to track your portfolio regularly to ensure that it i performing per your expectations and is providing you with good returns.
Key Aspects of Identifying Fundamentally Strong Stocks on BSE
To Identify fundamentally strong stocks on BSE, you must perform strong research and analysis to successfully identify these stocks. Follow the below guide to understand the crucial concepts of stock analysis to identify and invest in fundamentally strong stocks in BSE:
Ratio Analysis
- Earnings-Per-Share (EPS) – The Earning Per Share (EPS) ratio is a value that represents the amount of earnings generated by a company on each unit of equity share. This crucial metric helps investors assess a company’s profitability and derive its true value.
- Price-to-Earnings (P/E) Ratio – The price-to-earning (P/E) ratio is one of the most sought-after fundamental ratios that equity analysts and various investors use to gauge the true value of a stock. PE ratio tells investors whether a stock is overvalued or undervalued compared to its true value.
- Debt-to-Equity (D/E) Ratio – The debt-to-equity (D/E) ratio is a relationship between a company’s debt and its shareholder’s equity. By looking at the DE ratio, investors can understand how much debt a company uses to run its business. A higher debt-to-equity ratio typically means the company might be at risk because of increased repayment duties.
Financial Statement Analysis
- Profit and Loss (P&L) Statement – A P&L statement is the most important document or accounting statement investors look for to understand a company’s profitability status. A positive balance in this statement indicates that a targeted company is running its business profitability and is fundamentally strong.
- Balance Sheet – The balance sheet is a financial statement with a record of all the assets and liabilities that a company have. A balance sheet can help you analyse the liquidity and solvency of a company, and you can also calculate financial ratios using the value of this statement.
- Cash Flow Statement – Cash flow statements assist stock market participants in understanding how much cash goes out and how much cash comes into the company from its investing, operating, and financing activities. By analysing the cash flow statement, you can gauge whether a targeted fundamentally strong stock on BSE has enough cash to fund its repayment promises and short-term operational expenses.
Industry Analysis
Industry analysis helps understand the growth potential left in the industry in which a potentially fundamentally strong stock one BSE operates. Industry analysis can help you determine whether it is growing or stagnant and how much return-generating capability it has.
Management Analysis
Management analysis means analysing the management’s decision-making prowess and ability to make sound business decisions, which can make a BSE-listed share fundamentally strong.
Peer Comparison
This step involves the comparison of various fundamentally strong stocks on BSE based on multiple parameters. It helps narrow the investment research and help you choose the best investment option.
Benefits of Investing in Fundamentally Strong Stocks on BSE
- Stability – Fundamentally strong stocks on BSE offer portfolio stabilisation because they are backed by robust fundamentals. Therefore. By investing in these stocks you stay relaxed and can enjoy stable returns in the long term.
- Lower risk – Due to solid financials and stable price movements, fundamentally strong stocks on BSE are less risky than others and, hence, are preferred by a large number of long-term investors.
- Multifold Returns – When invested for a long-term investment horizon, stocks with strong fundamentals provide multi-fold returns on the initial capital. It means that fundamentally strong stocks on BSE have the potential to turn 100 rupees into a total of more than 1000.
- Good Dividend Yield – Due to stable profits and positive cash flows, fundamentally strong stocks listed on BSE usually offer good and consistent dividends to investors and thus have a higher dividend yield.
- Security From Downturns – Due to their strong foundations and solid performance history, BSE-listed companies based on solid fundamentals safeguard investors’ portfolios from losses during negative market conditions.
Disadvantages of Investing in Fundamentally Strong Stocks on BSE
Even the top fundamentally strong stocks on BSE are not free from risk,s and therefore, it is important to understand these risks before investing in stocks. Read the points below to understand the different types of risks involved when investing in fundamentally strong stocks on BSE:
- Large Investment – Generally, fundamentally strong BSE stocks attract high demand, resulting in high prices. Therefore, you have to invest a substantial amount of capital to acquire shares of these stocks in order to generate returns in the future. This also increases the potential risk percentage.
- Short-Term Price Fluctuations – Due to the requirement of a long-term investment horizon, fundamentally strong companies have to bear short-term price volatility, which sometimes leads to anxiety amongst investors, and they sell these stocks at lower prices to avoid these fluctuations.
- Future Uncertainties – The stock markets are always unpredictable, and fundamentally strong stocks on BSE are also at risk of facing uncertainties in their performance for the long term.
- Macro Economic Downturns – On a larger scale, when an economy faces challenges and difficulties, the stock prices usually experience downward pressure, affecting the fundamentally strong stocks on BSE.
To Conclude
- Fundamentally strong stocks on BSE are those listed shares which have strong fundamentals and solid growth potential for the future.
- Fundamentals refer to those parameters and financial metrics that help investors analyse and estimate a stock’s earnings and return-generating ability.
- You can invest in fundamentally strong stocks on BSE by opening a Demat account with a registered stockbroking platform.
- Fundamentally strong stocks on BSE have various benefits as well as risks. Therefore, investors must conduct thorough research and analysis before investing in these stocks.
FAQ
1. What are fundamentally strong stocks on BSE?
Fundamentally strong stocks on BSE are equity shares listed on the Bombay Stock Exchange (BSE) with robust fundamental qualities. These shares represent companies that are market leaders in their segments and have low debt and high profitability.
2. Why should I invest in fundamentally strong stocks BSE?
You should invest in fundamentally strong stocks on BSE to create a high-growth portfolio for generating substantial returns in the long term.
3. Which are the best fundamentally strong stocks in India for 2025?
The best fundamentally strong stocks in India for 2025 are:
4. Are fundamentally strong stocks good for beginners?
Fundamentally strong stocks can be a great investment opportunity for beginners because they are comparatively less risky and can generate good returns while experiencing controlled price stability.
5. What are financial ratios?
Financial ratios are mathematically derived metrics that investors use to analyse a potential stock for investment. Key financial ratios are debt-to-equity (D/E) ratio, price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, return on equity (ROE) and many more.
Explore More Fundamentally Strong Stocks on BSE
Explore Current and Previous IPOs
| Company | Opening Date | Closing Date |
| Chamunda Electricals Ltd. | 4th February 2025 | 6th February 2025 |
| Malpani Pipes and Fitting Ltd. | 29th January 2025 | 31st January 2025 |
| Dr. Agarwals Healthcare Ltd. | 29th January 2025 | 31st January 2025 |
| H.M. Electro Mech Ltd. | 24th January 2025 | 28th January 2025 |
| Denta Water and Infra Solutions Ltd. | 22nd January 2025 | 24th January 2025 |
| Stallion India Fluorochemicals Ltd. | 16th January 2025 | 20th January 2025 |
52-week Low Stocks on BSE
| Stocks | New Low (₹) |
| Abbans Holding | 166.00 |
| Accelya | 1390.05 |
| Aditya Consumers | 47 |
| Allcargo | 39.65 |
| Anupam Finserv | 1.71 |
| Arrowhead | 118.8 |
| Baid Finserv | 11.2 |
| Bank of Baroda | 206.65 |
| Barak valley Cem | 41.94 |
*Data is updated as of 2nd February 2025
52 Week High Stocks on BSE
| Stocks | New High (₹) |
| Ajcon Global | 85.74 |
| AMI Organics | 2484.15 |
| Arunis Abode | 162 |
| Assoc Alcohol | 1496.3 |
| Bajaj Finance | 8440 |
| Bajaj Health | 7121.05 |
| Baron Infotech | 17.27 |
| Bharat Texts | 53.1 |
| Bio Green Paper | 794.55 |
*Data is updated as of 2nd February 2025
Read Our Articles on the Best Stocks
Solar Penny Stocks in India 2025
Top 10 Fundamentally Strong Penny Shares to Buy in 2025
Top 10 Hotel Stocks in India 2025
Textile Stocks in India to Invest In
Travel Stocks in India to Invest In
Top 10 Infrastructure Stocks in India 2025
Best Solar Energy Stocks in India 2025
Explore Univest Screener to Make Smart Investment in The Stock Market
Univest Screeners
Disclaimer: Stock market investments carry risks, and past performance doesn’t guarantee future returns. Therefore, conduct thorough research, assess risk tolerance, and seek professional advice before investing in the above-mentioned fundamentally strong stocks.
