Even as the Sensex and the Nifty continue to scale higher, ignoring warnings of a fresh covid outbreak in the country, here are a few stocks that have plunged to 52 week lows.
Akzo Nobel India
The company is a subsidiary of the Akzo Nobel, which is one of the largest coatings companies in the world. The company is known for its portfolio of brands - including Dulux.
The stock is trading at Rs 2017, which is not far away from its 52-week lows of Rs 1959. In fact, the stock had also scaled a 52-week high of Rs 2530, which means there has been a significant downside in the stock.
Astrazeneca Pharma India Ltd
AstraZeneca Pharma India Limited is a subsidiary of AstraZeneca Plc, UK. In the last few quarters we have seen the stock prices of major pharma companies seeing a sharp drop. The shares of the company are now available at Rs 2090, which is not too far way from the 52 week low price of Rs 1950. The shares have also hit a 52-week high of a solid Rs 4660, which means the fall has been substantial from the high levels.
This is again a household name in India. The stock has fallen from levels of Rs 6275 to the current levels of Rs 5300. This is also a 52-week low. In fact, the problem right now for some of the stocks from the pharma, personal care and FMCG sectors is that with the economy gaining momentum, investors are more keen on economy driven stocks like banking, rather than safe haven stocks like pharma and FMCG.
Should something like a covid wave 3 play out, we might see defensives coming back in vogue.
Whirlpool of India
This is another stock that has slumped to a near 52 week low. The company is a top manufacturer of ACs and refrigerators in the country. Again, there has been some slowdown in the growth of the company, which has pushed the share price lower. We do believe that recovery would take longer than usual, given the competitive nature of the market.
The shares have dropped to Rs 1775, as against the 52 week low price of Rs 1713.
Muthoot Capital Services
This is one more stock that has dropped to near 52 week lows. The stock was last seen trading at Rs 357, as against the 52 week low price of Rs 342.
We believe that should the markets recover from the current levels, we might see some of the individual stocks too recovering. Therefore, buying into some of these stocks at lower levels would make sense.
"While the market trend might be volatile in the near term on account of potential risk from Omicron variant and fragile global cues, in the long run, strong earnings delivery along with positive macro-economic data would hold the key to drive markets upwards," says Siddharth Khemka of Motilal Oswal.
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