6 Quality Stocks That Have Fallen 40% From Highs, Should You Buy?

Even as the markets continue to look bullish, apart from intermittent profit booking, many stocks have fallen sharply on the back of poor quarterly numbers. Business conditions in some of these companies also may have changed, leading to a fall.

Here are 6 quality stocks that have dropped sharply

Name of company	52-week high	Current market price	Fall %
Jindal Polyfilm	1444	867	40.17%
Lux Industries	4641	1735	62%
Mphasis	3491	1931	44%
Sharda Cropchem	767	391	48%
Wipro	726	389	46.46%
BSE	1045	585	44

Should you buy some of these stocks at lows?

Some of these stocks listed above are from the IT Space, where brokerages have a downgrade on the sector as a whole. Take the case of Wipro, which is down nearly 47% from highs. Brokerage firm Emkay Global has a buy on the stock of the IT major and has set a price target of Rs 460 on the stock. A few other brokerages too have a buy call on the stock. Lux Industries another stock has taken a severe knock on account of the sharp increase in the price of cotton. The company is a leading layer in the innerwear segment. Should prices of cotton begin to fall, we might see a rebound in the stock.

BSE Ltd and Mphasis on the buy list

Mphasis is a stock where brokerage firm Motilal Oswal has a buy call. "We have largely maintained our estimates for FY23/24. Given the company's strong Digital capabilities and client relationships, it is well-positioned to be a key beneficiary in the current context. Our target price of Rs 2,430 implies 22x FY24E EPS. We reiterate our Buy rating on the stock," the brokerage has said.

Stocks are likely to move in line with the markets?

Several stocks are likely to move in line with the markets. So, should the markets fall from these levels, we would see stocks falling as well. We have seen Indian markets gaining ground significantly in the last 2-years. At these levels stocks maybe over priced and hence investors should sell at higher levels.