Markets have been rallying in the last few months, and have surged past a 17-month high.
However, there are many stocks that are near 52-week lows, while other have hit 52-week lows. Will these stocks recover sharply from here? Take a look.
Shares in L&T Infotech, launched an IPO only recently at Rs 711. The shares have fallen almost 10 per cent since than at Rs Rs 641. This is very close to its 52-week low of Rs 632.
Shares in L&I Infotech have been hammered down, largely in keeping in mind sentiments for IT stocks.
However, at the current rate, the p/e ratio of the company is around 12-times, earnings of 2015-16.
This makes the stock attractive, given that it is a part of construction behemoth, L&T.
The one worry for the company is that some large clients make-up bulk of the revenue and hence its depends on select few clients. The other worry is that sentiments for IT stocks have been bad hit in recent days, with results from TCS, Infosys, Wipro, MindTree all below estimates.
Asian Hotels North
Asian Hotels North runs the famous Hyatt Regency in Delhi.
The stock is trading at Rs 97.50, which is very close to its 52-week low of Rs 95.
The problem right now for the stock is that results have not been too good in the past few quarters. For the quarter ending June 30, 2016, the company reported a net loss of Rs 22.84 crores, as against Rs 28.70 crores for the same quarter in the previous year.
We do not see, how the results of the company could improve in the near future for the company.
The stock may not be a great buy at the current levels.
Glaxo Smithkline Pharma
Blue chip pharma company, Glaxo Smithkline Pharma is another stock that is trading very close to its 52-week low. The stock is trading at Rs 2,825, as against its 52-week low price of Rs 2,799.
Again, the stock has been a victim of poor quarterly numbers.
The company reported a drop in net profits to Rs 72.27 crores for the quarter ending June 30, 2016, as against Rs 105.78 crores, for the quarter ending June 30, 2016.
It may not be a bad idea to accumulate into the stock at declines. The only problem right now, is that there are just too many regulatory problems for pharma companies, with things going off patent and other issues.
Hexaware Technologies is another stock that is trading very near its 52-week low. The stock has been a victim of poor sentiments for IT stocks, after a poor string of results.
Hexaware is now trading at Rs 194.50, against its 52-week low price of Rs 192. It is unlikely that we may seen any sharp recovery in shares of IT companies soon. Client spends and margin pressure would continue to play on stocks of IT companies.
T D Power
T D Power Systems is one of the leading manufacturers of AC Generators in the world with products in the output range of 1 MW to 200 MW for prime movers, such as steam turbines, gas turbines, hydro turbines, diesel engines, gas and wind turbines.
The stock has fallen as quarterly numbers have lagged estimates. The shares are trading at Rs 190, which is close to a 52-week low of Rs 187.
Downside risk to the stock maybe limited from here on.
D Link (India)
D-Link (India) Limited is a part of D-Link Corporation and one of the largest networking company in India. The stock has hit a 52-week low of Rs 77 on the NSE.
Again, the stock has fallen largely on the back of poor quarterly numbers. Wait and watch before buying.
This is another IT company that has suffered. The stock is trading at Rs 512, against its 52-week low.
The company recently warned that revenues and margins for the second quarter ending Sept 30, 2016 would be worse than the first quarter.
Some analysts warn investors to stay away from IT stocks, till we see better guidance and visibility in revenues.
It maybe a high risk trade to enter the stock now.
Zodiac Clothing has also seen its share price drop and is currently trading at s 202, against its 52-week low price of Rs 192.
The company suffered a loss of Rs 0.88 lakhs for the quarter ending June 30, 2016. The prior quarter also saw a loss.
It is a fiercely competitive market in the apparel ware business. The stock is best avoided.
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