The equity markets have been volatile this year. Over 30 stocks in the BSE 500 index have tanked more than 50 per cent from their 52-week high levels. Experts believe that weakness in the Indian Rupee, outflows by foreign investors and the effects of the geo-political crisis have been weighing on the market.
Here are four shares that have lost more than 50 per cent from their 52-week highs and analysts are bullish on them:
One 97 Communications Ltd (Paytm)
The company’s shares have been nose-diving since their listing on the bourses in November 2021. On the day of their listing, they reached a 52-week high of ₹ 1955.00 apiece, on the National Stock Exchange. The shares are currently trading at ₹ 725.75. This means that they are trading 62.87 per cent lower than their 52-week high.
Global Brokerage Goldman Sachs has an ‘outperform’ rating on the shares with a target price of ₹ 1,100. This implies an upside of 51.56 per cent.
Goldman Sachs said that it sees the business model as continuing to show traction. They see Paytm as one of the most compelling growth stories at an attractive price. They expect elevated growth in high-margin segments to lead to faster profitability.
Paytm logged an 88 per cent increase in its revenue in the June quarter of the current fiscal. It said that it remained confident in achieving break-even by the September quarter of 2023. Further, it was bullish on customer demand related to the usage of its platform, and monetization.
Zomato Ltd
The share price of the food tech company has tumbled by 60.32 per cent since it reached its 52-week high of ₹ 169.00 on 16th November 2021.
Jefferies has a ‘buy’ rating on the stock with a target price of ₹ 100. This indicates an upside of 49.14 per cent as compared to its current share price of ₹ 67.05.
According to Jefferies, Zomato’s management believes the company has been able to take a lead in the market although competition (including Swiggy) remains intense and so the focus is on execution. Further, it said that investors are still not fully convinced about the break-even guidance by Mar-Sep 2023. Therefore, if the platform meets the target, it could be a positive surprise.
Metropolis Healthcare Ltd
The share price of Metropolis Healthcare is on a freefall this year. Its shares reached a 52-week high of ₹ 3579.9 apiece on 30 December 2021. However, their share price has fallen by 56.54 per cent since then.
IIFL Securities is bullish on the shares of Metropolis Healthcare. It has maintained a ‘buy’ rating with a target price of ₹ 1850 apiece. This translates to an upside of 18.93 per cent as compared to its current share price of ₹ 1536.00.
The brokerage said that though the company so far has catered to only 6 per cent of the population, which required a diagnostic test at the time of falling sick, its organic network expansion plans will enable servicing wellness needs for the remaining population and will help Metropolis to revert to the mid-teens growth trajectory.
IIFL said that with increasing contributions from wellness tests the share of its chronic business will also improve. It can acquire customers through the affordable wellness segment. Further, it will help the company to cross-sell its other services to its patients.
Gujarat State Petronet Ltd
The share price of Gujarat State Petronet Ltd reached a 52-week high of ₹ 336.50 on October 19, 2021. Thereafter, it shrunk by 34.33 per cent.
ICICI Securities has maintained a buy rating on the shares and has revised its target price to ₹ 375. This suggests an upside of 69.72 per cent as compared to its current share price of ₹ 220.95.
The brokerage in its report mentioned that demand prospects remain muted in Gujarat across sectors. However, the regulatory environment has improved and Capex plans are now moving ahead with some urgency.
Written by Simran Bafna
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