What's Pushed These Good Quality Stocks To 52-Week Lows?

Business

oi-Sunil Fernandes

By Sunil Fernandes

Published: Monday, May 7, 2018, 10:56 [IST]

Markets are just 3 per cent away from 52-week peaks. However, there are a few stocks that have plunged to 52-week lows. Some of these are good quality names and fundamentally sound, while still others are plagued by corporate governance issues. Take a look.

Hindustan Petroleum

A rise in crude prices is the single biggest factor that has pushed the HPCL stock lower. HPCL is a crude refiner and higher crude prices tend to impact margins.

However, the real problem is that crude prices have gone up and refiners like HPCL, have not been allowed to raise prices, because of the ongoing state elections in Karnataka. The stock has now fallen to a 52-week low of Rs 292. Another worry is that US President Donald Trump may not sign the nuclear deal with Iran, which could push crude oil prices even higher.

Check stock quote of HPCL here

Vakrangee

This is a stock that has been badly hit by corporate governance issues. The auditors reigned on account of lack of clarity in certain areas. Earlier there was SEBI investigations with regards to share price manipulation by the company and it received clean chit for the same.

The company is a profitable debt free company, whose shares price has fallen from Rs 500 to Rs 81.

Check stock quote of Vakrangee

All Cargo Logistics

This is one stock that many investors were bullish on. It is not clear as to why the stock is seeing selling pressure. The stock has now fallen to Rs 136, which is very close to its 52-week low of Rs 128.

Check stock quote of All Cargo Logistics here

Hindustan Media Ventures

Hindustan Media Ventures publishes "Hindustan", which is one of the top read Hindi newspapers in the country. In fact, the company has a leadership status in the State of Bihar and Jharkand. Many analysts are recommending buying the stock at the current market price of Rs 214. The stock has dropped from Rs 300. It has solid cash on its books and is a part of the HT Media group.

Glenmark Pharma

This is another stock that has plunged to a near 52-week low. Most pharma companies are not seeing any action on account of the margin squeeze in the US and also on account of the fact worries on the US FDA front. Glenmark's last few quarter results can best be described as poor and this is what has plagued the stock.

However, the falling rupee may lead to improved profitability. Check stock quote of Glenmark here

Some other stocks that are near their 52-week lows or thereabouts, include the likes of J&K Bank, Idea Cellular, Capital First and Hindustan Aeronautics. One has to always be careful before catching a falling knife.

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