27 stocks need to rally up to 300% to revisit their 52-week highs! Worth a look?

New Delhi: Domestic equity markets have been on a high lately as benchmark equity indices have been hitting new record highs in every session.

However, despite this stellar rise in the benchmark indices, the story is not hunky dory for all the counters and a number of stocks are trading sharply lower from their recent peaks.

More than 200 stocks or over 40% shares from the BSE500 index have plunged 20% or more from their 52-week highs, signaling bear grip for these counters, according to the data from Ace Equity.

As many as 27 equity shares on the BSE500 index have been trading more than 50% below their 52-week highs as of November 30. These stocks need to rally 100-300% to regain their previous glory.

Majority of these counters include recently-listed companies or new-age startup players, which have been in trouble for almost an year now. Other companies majorly belong to laggard sectors like IT, pharma or telecom.

The list is topped by One97 Communications (Paytm) which has plunged 73% from its latest 52-week high of Rs 1769.1. It is followed by Brightcom Group which is 71% down from its 52-week high.

Other new age companies including PB Fintech (Policy Bazaar), FSN E-commerce Ventures (Nykaa) and Zomato are 60-65% below their issue prices. All the startup players need to rally 150-300% to revisit their previous peaks.

In an interview with ET Now, Mahantesh Sabarad, independent market expert said that if an investor is stuck with this investment, they shall try to keep it in terms of portfolio weight less than let us say 2%.

"While you can enjoy the upside that can potentially hit that company, you may not lose much in your portfolio earnings, if it is in that 2% kind of range," he said.

Tata Teleservices (65% down), Tanla Platforms (62% down), Dilip Buildcon (60% down) and Metropolis Healthcare (60% down) are other few names which have been trading sharply lower.


ICICI Securities has a buy rating on Metropolis Healthcare with a target price of Rs 1,926, whereas HDFC Securities has a buy tag on both Tanla Platforms and Dilip Buildcon with a target price of Rs 1,000 and Rs 340, respectively.

Zensar Technologies, Gland Pharma, Samvardhana Motherson International, Alok Industries, TV18 Broadcast and Indiabulls Real Estate have also tumbled 55-60% from their latest peaks and need to rally up to 150% to reclaim it.

Motilial Oswal has buy rating on Gland Pharma with a target price of Rs 2,470 on the stock, whereas Emkay Global has a buy call on Samvardhana Motherson with a target price of Rs 94.

MRPL, Shilpa Medicare, Intellect Design Arena, Delhivery, HLE Glascoat, Amber Enterprises, Quess Corp, Indian Energy Exchange, Vodafone Idea, Trident, Mastek and Indiabulls Housing Finance have also halved from their 52-week highs.

Jefferies and HSBC maintain a buy rating on Delhivery, ICICIDirect has changed its rating on Intellect Design from buy to hold. Axis Securities has suggested buying Amber Enterprises with a target price of Rs 3,000.

Motilal Oswal remains neutral on Vodafone Idea whereas it has suggested to buy Quess Corp with a target price of Rs 423. ShareKhan has suggested holding Mastek with a target price of Rs 1,900.

Market participants believe that there is more upside left in the Indian markets. In its latest report, Morgan Stanley's India equity strategist Ridham Desai said the index would hit 68,500 by December 203 in the base case scenario.

Making a case for the bull run to continue in 2023 amid an up-trending profit cycle, a peak in short rates, and ebbing global macro risks, the global brokerage sees a 30% probability of Sensex hitting 80,000 in the next 12 months.

“We are sticking to India at a market weight allocation because of performance and high valuations," says Sunil Koul, Executive Director, Goldman Sachs. "Expect strong fundamentals and strong earnings growth for the next two years."

(With data inputs from Ritesh Presswala)

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)