Fundamentally strong small-cap stocks with the highest Piotroski score
Nifty 50 continues to rise from its September 2022 lows. Investing in solid small-cap stocks makes more sense in light of strong local and global trends. Continue reading to learn more about such stocks.
Nifty 50 started today's session on a positive note, with promising global trends. Furthermore, it has crossed the critical Fibonacci threshold of 78.6 per cent. However, significant resistance is expected near the 18,200 mark. Any movement over this level will initiate a new northward march. 17,800 and 17,600 would offer considerable support on the route south.
Following a strong surge that started in July 2022, S&P BSE Small-Cap index dropped by about 8.5 to 9 per cent. S&P BSE Small-Cap index traded range-bound in October 2022. Small-cap indices are valued lower than Large-Cap indices. This is an excellent chance to gradually build a portfolio of fundamentally sound small-cap stocks. In this post, we will identify high-quality small-cap stocks with a higher Piotroski score.
Understanding Piotroski score
The Piotroski score has a distinct value between 0 and 9. This score is used to assess a company's financial health. This is a common metric among value investors, with a score of nine representing the best and a score of zero representing the worst. The Piotroski score measures a company's profitability, leverage, liquidity, source of funds and operational efficiency.
Top small-cap stocks with the highest Piotroski scores are shown in the table below.
|
Stocks
|
Piotroski Score
|
CMP (Rs)
|
PE TTM
|
Price to Book
|
Revenue QoQ Growth (%)
|
|
Vadilal Industries Ltd.
|
9
|
2,217.6
|
19.6
|
5.4
|
83.8
|
|
Jindal Drilling & Industries Ltd.
|
9
|
310.2
|
7.8
|
0.8
|
3.9
|
|
West Coast Paper Mills Ltd.
|
9
|
617.0
|
8.9
|
2
|
4.4
|
|
Andhra Paper Ltd.
|
9
|
491.8
|
9.9
|
1.8
|
6.1
|
|
Accelya Solutions India Ltd.
|
9
|
1,293.5
|
20.3
|
7.4
|
11.8
|