Over the year Nifty 50 has given a 15% return, however, some stocks have underperformed the index which is trading lower than their expected prices and they are unable to outreach the index.
Here are three stocks widely influenced by financial and economic downturns.
Adani Ports and Special Economic Zone Ltd
The shares of Adani Ports and Special Economic Zone Ltd currently trading at the price of ₹ 699.95 on May 12th from a 52-week high of ₹987.85 or 28.33 percent down, The reasons for a stock to trade from below high are as follows,
- The litigation made by Hindenburg Research on Adani group companies in Jan 2023 resulted in a 40 percent downfall in the stock price.
- The conglomerate lowered its growth target to 15-20% for the next financial year, down from the 40% growth originally targeted.
- The company is also facing Inter-corporate debt worth ₹ 5000 crores and cash burn from loss-making subsidiaries.
On a last three-month basis, the stock gained 21.38 percent ranging from ₹ 583.95 to the current price level.
Adani Ports & Special Economic Zone. Adani Port is India’s largest port operator,It is in the business of development, operations, and maintenance of port infrastructure (port services and related infrastructure development) and has a linked multi-product Special Economic Zone (SEZ). Adani Ports ranked 1st in the transport & logistics sector globally across all the emerging markets for its ESG performance in 2022 by Moody’s.
As per Consolidated financials Company reported their revenue which significantly increased from ₹ 12,549 crores during FY 20-21 to ₹ 15,934 crores in FY 21-22. In contrast, their net profits decreased from ₹ 5,063 Crore compared to ₹ 4,602 Crore in the same timeframe period.
Infosys Ltd
The shares of Infosys Ltd traded at the price of ₹ 1,249.45 on May 12th from a 52-week high of ₹1,672.60 or 33.86 percent down, The reasons for a stock to trade from below high are as follows,
- The revenue outlook was deemed dismissed due to the impact of banking turmoil in major markets, specifically America and Europe.
- Impact of Geopolitical factors across the globe and economic slowdown resulted in weaker overseas demand.
- The company forecasted weaker financial growth this financial year at 4-7 percent. This would be the slowest in six years.
In the previous three years, the stock has gained around 83.94 percent ranging from ₹ 652 to the current price level.
Infosys Ltd Is the 2nd largest Information Technology company in India it provides consulting, technology, outsourcing, and next-generation digital services to enable clients to execute strategies for their digital transformation.
As per Consolidated financials, the company reported their operating revenues, which increased significantly from ₹ 1,21,641 crores during FY 21-22 to ₹ 1,46,767 crores in FY 22-23. Their net profits stood at ₹ 22,146 Crore compared to ₹ 24,108 Crore in the same timeframe period.
Divis Laboratories Ltd
The shares of Divis Laboratories Ltd traded at the price of ₹3,326 on May 12th from a 52-week high of ₹4,438.80 or 33.42 percent down, The reasons for a stock to trade from below high are as follows,
- Quarterly performance has been continuously deteriorating for Dec FY21, and in FY 2022-23, the company has reported dull numbers.
- Continuous selling by FIIs in the last five years FIIs have reduced their stake by more than 5.5%.
- The net profit margin declined 18% in Q3 from 26.6% in the previous quarter Q2 for FY 22-23.
In the previous three years, the stock has gained around 40.94 percent ranging from ₹ 2,300.80 to the current price level.
Divis Laboratories Ltd is engaged in the manufacture of Active Pharmaceutical Ingredients (APIs), Intermediates, and Nutraceutical ingredients with a predominance in exports. In addition to generic business, the Company, through its custom synthesis business, supports innovator pharma companies for their patented products business right from gram scale requirements for clinical trials to launch as well as late life cycle management.
As per Consolidated financials, the company reported their operating revenue which was significantly reduced from ₹ 8,959 crores during FY 20-21 to ₹ 6,969 crores in FY 21-22. Their net profits increased from ₹ 1,984 Crore compared to ₹ 2,960 Crore in the same timeframe period.
Written by Omkar
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