Markets are trading at near peak levels, but, there are many stocks that are now trading at half their 52-week highs. Take a look.
Can Fin Homes
Can Fin Homes shares, the housing finance company from the Canara Bank stable has halved in value from a high of Rs 650, hit exactly a year ago on July 17, 2017 to the current price of Rs 320. The shares have dropped by half in a year, as housing finance companies, which were the favorite a year back, riding on low priced housing schemes, have not seen the anticipated robust growth.
Looking at the carnage in midcap stocks, there maybe even further downside in this stock.
This government owned company has seen a dramatic fall in its share price from levels of Rs 240 to the current levels of Rs 61. NBCC has a huge order book from the government and business activity is assured.
However, the shares of NBCC is available at a face value of Re 1. Looks like there maybe limited downside to the share price at these levels.
Jammu and Kashmir Bank
This shares of Jammu and Kashmir Bank has dived from levels of Rs 90 to Rs 46.20. The good thing about this bank is that the last quarter has seen some small reduction in non performing assets and the bank is laying emphasis on a speedy recovery.
The other thing is that it has a small equity capital of Rs 55 crores. This means should there be recoveries in the non performing assets, we could see a solid recovery in the share price. Looks like the share could have bottomed out at these levels, as there is very limited downside risk in the stock at Rs 45.
This is a very old company that has been a consistent performer and a dividend paying company over the last many years. The shares of the Deepak Fertilisers, has halved from levels of Rs 504, that it hit in November 2017 to the current levels of Rs 245.
Difficult to predict whether there would be further downside risks to the stock. However, long term investors who are willing to take a risk can accumulate this stock.
It is important to note for investors that small and midcap stocks have corrected dramatically. While there is definitely some value, investors need to be cautious, as far as small and midcap stocks are concerned. Look for positive cash flows, dividend paying track record etc.