The markets have been volatile this year with negative cues emanating from the Russia-Ukraine war and the economic slowdown after Covid-19 lockdowns. Globally, central banks have been hiking interest rates in consecutive meetings and this has roiled the markets.
The Nifty 50 is a benchmark index that represents the weighted average of 50 of the largest Indian companies. As per year-to-date data, it has lost 3.22% and is currently at 17050 levels.
The IT sector was one of the major contributors to the fall. However, here are a few companies from various sectors, whose share price has tumbled this year. Let’s take a look at what brokerages are saying about them:
Tata Motors Limited
The auto major’s shares are quoting 20.14% lower as per year-to-date data. The share price of the company has fallen from ₹ 497.60 to ₹ 397.40 apiece.
The Bank of England said last week that Britain’s economy was now in recession. This weakened the sentiment around the stock, as the company’s arm Jaguar Land Rover (JLR) contributes 67 per cent to the revenues of the Indian auto firm. A spike in the cost of commodities and a loss in production due to a shortage of semiconductors is adding to its worries.
Motilal Oswal Financial Services is bullish on the stock. The brokerage has maintained a buy call with a target price of ₹ 514. This translates to an upside of 29.34% as compared to its market price of ₹ 397.40 apiece.
Divi’s Laboratories Ltd
The shares of this Indian multinational pharmaceuticals company have dropped by 20.46% as per year-to-date data, from ₹ 4651.25 to ₹ 3699.75.
Pharmaceutical stocks surged when the demand for drugs to cure the Covid 19 Pandemic was high. The industry saw a rise in sales during the Covid spike. However, the market flattened after the number of coronavirus cases declined, except for Q1FY2022.
Motilal Oswal has a buy call on the shares of Divi’s Laboratories with a target price of ₹ 4340.00. This suggests an upside of 17.31% as compared to its current share price of ₹ 3699.75.
Hindalco Industries Limited
Hindalco Industries, the flagship company of the Aditya Birla Group is engaged in the production of Aluminium and Copper. Its shares declined by 22.62% as per year-to-date data from ₹ 478.05 levels to ₹ 369.90 levels.
The stock has been losing its shine amid problems on the demand front as well as on costs led by the price of coal. Its cost of production has risen sequentially since the supply of low-cost linkage coal has been diverted to the power sector. Hindalco has to rely on coal from e-auctions or imports, which are costlier. In addition, its subsidiary Novelis formed 51% of its EBITDA and there a demand slowdown in the North American beverage can market has added to the woes.
JM Financial has a buy call on the share of Hindalco Industries with a target price of 525. This implies an upside of 41.93% as compared to its current market price of ₹ 397.40.
Wipro Limited
The Indian IT multinational company’s shares contracted by a whopping 44.64% as per year-to-date data, from ₹ 718.70 to ₹ 398.10 levels.
Most IT majors, including Wipro, hit their 52-week lows on Monday as Indian markets tanked in line with global equities. Interest rate hikes by the US and other major economies to tame inflation have driven the markets southward. Wipro’s stock has taken a beating as IT companies derive a majority of their revenue from global clients. In addition, IT companies, including Wipro are facing challenges due to high attrition rates and moonlighting.
Global Brokerage Macquarie has maintained an outperform rating on the company’s shares with a target price of ₹ 540. This indicates an upside of 35.64% as compared to its current market price of ₹ 398.10.
Written by Simran Bafna
Source – Tradebrains.in
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