These 36 stocks need to rally up to 425% to revisit their 52-week highs

New Delhi: Indian benchmark index Nifty50 has dropped about 6% from its recent peak amid rising market volatility, but the rout among select stocks has been more painful for investors.

According to the data from Ace Equity, as many as three dozen stocks need to post over 100% returns from their current levels. These 36 stocks need to rally 100-426% to regain their 52-week highs from the last close.

The list of beleaguered counters include players from various sectors including new-age internet companies, NBFCs, IT, healthcare, petrochem, energy, auto and auto ancillaries, media, consumer durables, telecom and others.

According to market watchers, global turbulence, inflation worries, rate hikes, indecisive FII flows, weakening of the rupee and looming fears of a recession are key worries that have dented the sentiments for these stocks.

The dollar index can probably rise another 5-10% because all this tightening is making capital flow into developed markets where there is a higher risk-free rate, Jose Torres, Senior Economist, Interactive Brokers told ET Now.

"I do see it weighing on emerging markets," he added. "Every time the dollar has been this strong, we have seen some kind of weakness around the world."

However, the Indian equity market has remained firm in comparison to its global peers. Market experts believe that it would continue to outperform over the coming days.

That said, among losers, the list is topped by Dhani Services which is trading about 81% below its 52-week high of Rs 232. The stock needs to rally 427% from its price of Rs 44.05 on Friday, October 13, to regain those levels.

Dilip Buildcon, PB Fintech and Brightcom Group are also 67-70% below their 52-week highs, and these stocks need to zoom 238%, 232% and 207%, respectively from their latest close to revisit their highs.

One97 Communications, Lux Industries, Zomato, Indiabulls Real Estate, Tata Teleservices and Tanla Platforms also need to rise between 1500-200% from current prices to reclaim 52-week highs.

Samvardhana Motherson, Zensar Technologies, HEG, IEX, Medplus Health, Metropolis Healthcare, NIIT, Indiabulls Housing Finance, TV18 Broadcast, Indiamart Intermesh, Vaibhav Global, Mastek, Manappuram Finance and Godrej Properties are down up to 55% from their peaks. These stocks need to rally up to 150% to reclaim the same.

MRPL, Nazara Technologies, Welspun India, Firstsource Solutions, Nykaa, Alok Industries, HLE Glascoat, Latent View, Birlasoft, Chemplast Sanmar, Jubilant Pharmova and Info Edge need to turn multibaggers to regain their latest 52-week highs.


Analysts suggest that despite the sharp correction, not every stock is a goldmine in terms of valuation and performance. Investors need to have a stock-specific approach after September 2022 earnings and cherry-pick the counters on merit.

The market has corrected 30-35% across different sectors in the US. Even the dollar rally looks a bit tired after a massive run-up, said Ashutosh Bhargava, Fund Manager & Head-Equity Research, Nippon India MF.

"Valuations have corrected in terms of price to earnings, but I still see there is scope for earnings to correct," he added.

After an initial rally, mid and smallcaps are consolidating and there is a high probability that the upward momentum is likely to continue in these stocks, said Arpit Jain, Joint MD, Arihant Capital.

"As we are into results season, we will see stock-specific performances due to the actual results," he added. Jain is positive on GHCL, Tata Chemicals, Vishnu Chemicals and rice exporting companies like KRBL & LT foods from the midcap space.

Data Inputs: Ritesh Presswala

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