The broader markets have fallen in the last few months, even as the index is just a few per centage points away from record highs. Here are 3 bluechip stocks that are available way below their 52-week highs.
PNB Housing Finance
Housing finance companies have been plagued by numerous worries, including lower disbursements, liquidity worries etc. PNB Housing Finance too has witnessed a sharp fall in disbursements.
The stock in Nov 2018 was trading at above the Rs 1,000 levels and has now come crashing down to Rs 390. It's difficult to predict which way the stock would swing given the difficulty that most housing finance companies are going through.
PNB Housing Finance's loan disbursements for the second quarter of the current fiscal fell by nearly 35% sequentially to Rs 4,970 crore, the company said in a stock exchange filing. .
This is another stock that has almost halved in value from levels of Rs 500 plus, to the current levels of Rs 260.
The problem is not with the company per se, but, with the group as a whole. The Essel Group, the main promoters of Zee have severe problems pertaining to debt at the group level. Recently, mutual funds sold promoters pledged shares, which led to a solid crash in the shares of Zee Entertainment. The promoters of the company have been given time to settle debt due to mutual funds by March.
Again, one is not sure, which way things could swing, which makes the call on Zee Entertainment, a difficult bet.
Graphite India stock has not fallen 50 per cent, but, has fallen almost 60 to 70 per cent. The stock, which had hit a 52-week high of Rs 1022 on Oct 18, 2018 is now trading at Rs 269.
One of the reasons for the fall in the stock is that profitability over the last few quarters has fallen and so has the stock price. In fact, most of the companies in graphite electrodes have seen their stock prices fall, including HEG, where margins have contracted due to a sharp increase in the prices of needle coke, a key raw material.
It's important to note for readers that we are not recommending these stocks. We have only provided some insight on the reasons for the fall in these stocks. Whether there is a turnaround is difficult to say. At least some of the business is looking that way for a turn around.