Beaten down stocks have the potential to bounce back really fast and make decent returns in the short term. Banking stocks that were really beaten down in the last three years are today trading at 52-week highs. Here are a few stocks that can rally in the short term. By short term we mean a period of less than 1-year.
Tata Motors DVR
Shares in Tata Motors have fallen sharply as sales from Jaguar Landrover fell in the month of April. In fact, Land Rover saw sales of 28,075 vehicles in April, down 15.8% as compared to April 2016.
The DVRs of Tata Motors have hit a new 52-week low of Rs 257, while the shares of Tata Motors have hit Rs 419 and not very far from its 52-week closing price of Rs 376. If the shares fall even further it maybe a good time to accumulate the stock. Buying on declines is a strategy that might yield good results for a stock like Tata Motors. If you hold the stock in the short term (less than 1 year), there are chances that you could make money.
This is one of the largest player in the Indian anti-virus software market. In fact, the company commands a market share of more than 30 per cent. The Quickheal technologies stock at Rs 239 is not very far away from its 52-week low of Rs 202. India has been consistently reporting higher malware and spyware in the last few years, which should augur well for the company.
This has led to phenomenal growth of companies like Quick Heal Technologies. The company is also a debt free company with a free cash flow, which is very good.
This probably one of the cheapest IT stocks to own. The company recently unveiled a new logo. The company has somehow not been getting the best discounting. Recently, the company reported an EPS of Rs 55.70 and the stock is quoting at just Rs 732, which takes the p/e to just about 13.3 times, which makes it the cheapest IT stock at the moment. However, one must also remember that there is less fancy for IT stocks these days.
In any case, a stock that can yield returns in the short term. Check stock quote here
This is India's largest pharma company after the merger with Ranbaxy. The shares of the company have fallen from levels of Rs 855 to the current levels of Rs 629.
The company has had a problem with the US FDA, which has had the potential to hit exports. However, the company's R&D initiatives and new products in the pipeline is a big positive. There are worries over the delayed Halol resolution and some margin pressures at its subsidiary Taro. However, the research and development initiatives and the several products in the pipeline is a big initiative.
Other beaten down stocks
There are many other beaten down stocks that have the potential to rally in the coming days. Among these include names like Lupin Ltd, Infosys, TCS, Tech Mahindra. Some of these are very close to their 52-week lows, which leaves them with a potential to make money.
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