10 Quality Mid & Small Cap Stocks Down 40% From Highs, Should You Buy?

Markets have been consolidating in that 54,000 to 55,000 range on the Sensex. According to S Hariharan, Head Sales Trading, Emkay Global Financial Services Banks have been a significant out-performer in the rebound in markets over the last week - the price ratio of Banknifty / Nifty is on the verge of breaking out from a 2-1/2 year downtrend, suggesting a major structural trend change in the market.

Rising oil prices pose a risks to the market

According to Hariharan, in the very near-term, a rebound in crude oil prices poses a risk to the current account deficit and therefore, to expectations of rupee depreciation. Hence, foreign investor flows would remain a headwind to the market, capping any meaningful upside in absolute terms in headline indices.

"Positive commentary from Infy and HDFC Bank over the last few days would serve to cushion sentiment, and these sectors can be out-performers for the coming month. Moreover, there is traction in 2-wheeler sales driven by marriage season demand and reopening of educational institutions. On the other hand, input cost inflation concerns would keep Cement and Consumer Durable companies under pressure going ahead," he says.

List of quality midcaps and small caps that are down 40% from 52-week highs

Name of company	Current market price	52-week highs	% loss
Computer Age	2404	4067	-40.89
Mindtree	3003	5060	-40.65
Lux Industries	2020	4644	-56.5
Glenmark Lifesciences	799	426	-46.68
HDFC AMC	1690	3365	-49.78
ICICI Securities	444	896	-50.45%
Bajaj Consumer	144	307	-54.07
Tv Today	274	460	-40.25%
Gulf Oil	422	745	-43.66
Firstsource	110	242	-54.55%

ICICI Securities is a good stock to buy

Among the list of stocks that have fallen is ICICI Securities. The stock has halved from 52-week highs and is a good pick after the sharp fall in share price. The stock is now available at a price to earnings ratio of just 11 times and is also available at a dividend yield of nearly 5%. Both these factors make the stock of ICICI Securities a good pick at the current levels. We also believe that as the investor population grows, the company which is largely a broking firm would do well. Therefore, it makes sense to buy the stock at a very attractive p/e.

 

TV Today is another good stock to buy

TV Today is another good stock to buy. The company had a reasonable performance for FY 2021-22. Revenues came in at Rs 930 crores for FY 2022, as against Rs 883 crores for FY 2021. The EPS of the company also jumped to Rs 30. On the current stock price of Rs 274, the shares trade at a price to earnings multiple of barely 8 times, which makes the stock attractive to buy. The company is one of the top players in the TV business. TV Today Network Limited operates a 24 hour news channel, Aaj Tak, delivering news in Hindi. The company also operates an English new channel, Headlines Today, primarily targets young urban viewers. Apart from the above two stocks, there are many stocks that we would like to recommend investors to buy including names like Gulf Oil Lubricants, which is cheap on valuations and good on dividend yields.

Disclaimer

Investors are advised caution as the markets have become exceedingly volatile. Neither Greynium Information Technologies, nor the author, nor the brokerage house would be responsible for any losses based on a decision reading the above article. Every effort has been made to provide accurate information and readers should understand the inherent risks before investing in the markets. The author and his family own shares of ICICI Securities listed above on the date of writing this article.