Since March 2023, the benchmark indices observed a continuous rally in prices, but, since the mid of September 2023, the indices started to see corrections and, as of Thursday, the Nifty 50 index stands at Rs 19,523.55 and the Sensex closing at Rs 65,508.32.
Listed below are 3 financially sound companies that have seen corrections of up to 22 percent in the past two weeks:
BLS International Services Limited
With a market capitalization of Rs 10,312.05 crores, the stocks of BLS International Services Limited closed at Rs 250.45 on Thursday, slipping around 1.30 percent as compared to the previous closing levels of Rs 253.70 apiece.
From 15th September 2023, the company’s stock has dipped around 9 percent from Rs 275.95 to the current levels.
One of the possible reasons for the company’s shares to see some corrections is after the recently emerged tensions between India and Canada.
Keeping the short-term price movements aside, the company has outperformed with the net sales taking a jump from Rs 849.89 crores during FY21-22 to Rs 1,516.19 crores during FY22-23. Moreover, the net profits of the company rose from Rs 111.2 crores to Rs 204.27 crores during the same time period.
Vedanta Limited
With a market capitalization of Rs 77,410.62 crores, the stocks of Vedanta Limited closed at Rs 208.25 on Thursday, slipping around 0.40 percent as compared to the previous closing levels of Rs 208.95 apiece.
From 15th September 2023, the company’s stock has dipped around 11 percent from Rs 236.30 to the current levels.
One of the possible reasons for the company’s shares to see some corrections is after Moody’s Investors Services, a financial services firm rating debt securities, ‘downgraded’ the rating of Vedanta Resources from Caa1 to Caa2. The downgrade in the rating is supported by the increased risk associated with the company’s upcoming debt repayments.
Keeping the short-term price movements aside, the company’s financial performance has stayed at stable levels.
The annual financials show the net sales rising from Rs 1,32,732 crores during FY21-22 to Rs 1,47,308 crores during FY22-23. Due to increased raw material costs, the company’s bottom-line figures have reduced from Rs 23,709 crores to Rs 14,506 crores keeping the horizon the same.
Delta Corp Limited
With a market capitalization of Rs 3,770.22 crores, the stocks of Delta Corp Limited closed at Rs 140.80 on Thursday, a flat movement as compared to the previous closing levels of Rs 140.85 apiece.
From 15th September 2023, the company’s stock has dipped around 22 percent from Rs 180.70 to the current levels.
One of the possible reasons for the company’s shares to see some corrections is due to a couple of reasons such as the levy of max slabs of GST, receipt of tax notices, etc. Recently, Mr. Ashish Kacholia, a well-known ace investor based in India, sold shares of Delta Corp via Bulk Deals.
Keeping the short-term price movements aside, the company’s financial performance has been decent enough with the net sales taking a jump from Rs 616.13 crores during FY21-22 to Rs 1,020.77 crores during FY22-23. Moreover, the net profits of the company rose from Rs 67.84 crores to Rs 262.31 crores during the same time period.
Written by Amit Madnani
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