Eight of the most ailing bluechips stocks have fallen more than a third of their respective highs. The majority of these battered stocks come from the healthcare, IT, infrastructure and metals sectors.
However, market analysts remain mostly positive on these stocks, seeing a rise of up to 70 percent in these stocks, most of which have a buy rating.
Among the latest entrants to Nifty50, , tops the list of wealth destroyers. It has tanked more than 39 percent to Rs 3,568.5 from its 52-week high of Rs 5,930.7 scaled in November 2021.
Apollo Hospitals reported a 46 percent year-over-year decline in net profit to Rs 90 crore in Q4FY22 due to a capital gains tax provision of Rs 88.2 crore related to the reorganization of its pharmacy distribution business.
Elara Capital has repeated a ‘buy’ on the share but has lowered its target price to Rs 5,125. “Higher occupancy rates and specialized operations in mature and new facilities and the addition of new pharmacy stores are expected to drive growth,” it said.
IT majors including and are down 38 percent and 36 percent, respectively, from their respective 52-week highs, reflecting reduced demand and margin pressure on these companies.
Global financial brokerage Macquarie has upgraded Wipro from “neutral” to “overweight” and also raised its target price from Rs 660 from Rs 630 to Rs. Credit Suisse maintained its neutral rating for the IT stock with a price target of Rs 530 per share.
Tech Mahindra is well positioned to sustain growth momentum in FY23 thanks to its strong transaction TCV run rate, robust growth in the FY22 order book and better placed to handle strong demand in the communications segment, brokerage Prabhudas Lilladher said. .
“Weak exit margins and headwinds from higher staff costs, depreciation, travel and facility refunds will weigh on margins and earnings per share in FY23,” it added with a buy recommendation and a target price of Rs 1,426.
is down 36 percent from the recent high of Rs 636, scaled toward the end of FY22, on the back of negative sentiment around metal companies. However, brokers are seeing the counter scaling up new peaks after Q4 numbers. reported a doubling of consolidated profits at Rs 3,851 crore in the March quarter, a record for any quarter, compared to Rs 1,928 crore in the same quarter last year.
Global brokerage firm CLSA maintained a buy rating with a price target of Rs 580 per share. It feels that the results were on the expected line, but all headwinds have been priced in at the current level.
Macquarie also maintained an outperform rating with a price target of Rs 689, while Credit Suisse sees a price target of Rs 640 per share. It also maintained its outperform rating on Aditya Birla Group’s share.
Bluechip drugmaker Divi’s Labs is also down about 36 percent from its last peak, despite the drug company delivering better-than-expected results for the March 2022 quarter.
“While there are clear short-term concerns, the long-term growth levers are intact,” Sharekhan said. “We maintain a buy recommendation for the stock with a revised target of rupees 4,900.”
Amid the government’s overhanging divestment, Bharat Petroleum Corporation (
) is down 35 percent from its 52-week high of Rs 503 in September 2021 to Rs 328.1 on June 3.
The government recently withdrew its offer to sell its entire 53 cent stake in BPCL, citing that most bidders have indicated that they are unable to participate in the current privatization process due to the prevailing conditions on the global market. energy market.
“While the current scenario is weak with negative auto fuel margins, we are maintaining Buy on reasonable valuations and expectations of a gradual recovery of margins to normative levels,” Emkay Global said with a target price of Rs 415.
and its other stocks are down more than 34 percent from their 52-week high.
ICICIDirect Research maintained a buy rating on Bajaj Finserv, but has revised its target from Rs 20,000 from Rs 20,000 to Rs 18,900, given an improving financial sector and expected healthy growth in the insurance segment.
According to a report by
will likely replace Shree Cement in the Nifty50 pack in the upcoming semi-annual index review effective September 30, 2022.
Swiss brokerage firm Julius Baer has suggested investors to hold Shree Cement, with a target price of Rs 25,500, which was previously Rs 28,100.
(Disclaimer: Recommendations, suggestions, views and opinions of the experts are their own. They do not represent the views of Economic Times)