Beta is a financial metric that measures the volatility or risk of an individual stock or asset in relation to the overall market. It indicates how much a stock’s price is expected to change in response to market movements.
A beta of 1 means the stock moves in line with the market, while a beta greater than 1 indicates higher volatility and risk, meaning the stock tends to move more than the market. Conversely, a beta less than 1 suggests the stock is less volatile than the market. A negative beta implies the stock moves in the opposite direction to the market.
Here is the list of stocks with Beta less than 1:
1. Trent Limited
Trent Ltd. is an Indian retail company and a part of the Tata Group. It operates various retail brands, including Westside, Star Bazaar, and Zudio. The company focuses on offering a wide range of fashion and lifestyle products through its stores across India.
The stock is trading at a 1 Year Beta of 0.67 with a market capitalization of Rs. 1,77,464.67 crores, the company’s revenue has risen by 32.9 percent from Rs. 3,546.95 crores to Rs. 4,715.64 crores in Q3FY23-24. Meanwhile, Net profit rose from Rs. 374.36 crores to Rs. 497.25 crore during the same period.
Trent Limited has an impressive Return on Equity (RoE) of 29.14 percent and a Return on Capital Employed (RoCE) of 30.26 percent, and Furthermore, the company’s debt-to-equity ratio is 0.39.
2. Sun Pharmaceuticals Industries Ltd
Sun Pharmaceutical Industries Ltd. is a global pharmaceutical company headquartered in India. It is one of the largest drug manufacturers in the world and specializes in producing generic and specialty medicines, including treatments for oncology, cardiology, and dermatology.
The stock is trading at a 1-year beta of 0.87, with a market capitalization of Rs. 3,96,408.44 crores, the company’s revenue has risen by 11.96 percent from Rs. 12,630 crores to Rs. 14,141 crores in Q3FY23-24. Meanwhile, Net profit rose from Rs. 2,523.75 crores to Rs. 2,903.38 crore during the same period.
Sun Pharma Limited has an impressive Return on Equity (RoE) of 15.99 percent and a Return on Capital Employed (RoCE) of 18.11 percent, and Furthermore, the company’s debt-to-equity ratio is 0.04.
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3. Infosys Limited
Infosys Ltd. is a multinational IT services company based in India. It offers consulting, software development, and business process outsourcing services to clients worldwide. Infosys is one of the largest IT companies in India, with a strong focus on digital transformation and innovation.
The stock is trading at a 1 Year Beta of 0.48 with a market capitalization of Rs. 6,87,734.24 crores, the company’s revenue has risen by 7.61 percent from Rs. 39,610 crores to Rs. 42,623 crores in Q3FY23-24. Meanwhile, Net profit rose from Rs. 6,106 crores to Rs. 6,806 crore during the same period.
Infosys Limited has an impressive Return on Equity (RoE) of 31.32 percent and a Return on Capital Employed (RoCE) of 39.02 percent, and Furthermore, the company’s debt-to-equity ratio is 0.09.
4. Solar Industries India Limited
Solar Industries India Ltd. is a leading manufacturer of industrial explosives, explosives accessories, and defense-related products. The company provides solutions to the mining, construction, and defense industries and has a significant presence both in India and internationally.
The stock is trading at a 1 Year Beta of 0.54 with a market capitalization of Rs. 88,226.45 crores, the company’s revenue has risen by 37.6 percent from Rs. 1,440.05 crores to Rs. 1,982.62 crores in Q3FY23-24. Meanwhile, Net profit rose from Rs. 203.33 crores to Rs. 314.87 crore during the same period.
Infosys Limited has an impressive Return on Equity (RoE) of 26.64 percent and a Return on Capital Employed (RoCE) of 30.55 percent, and Furthermore, the company’s debt-to-equity ratio is 0.32.
Written by Sridhar J
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