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5 fundamentally strong stocks trading near 52-week low. Time for bottom fishing?

Nevertheless, choosing stocks to invest in during these uncertain times can be challenging. Growth stocks may appeal to some investors, while bargains in more established businesses may appeal to others.

Bottom fishing can be done in the current market conditions. As a result, in this article, we will take a look at five fundamentally strong stocks that are trading close to or at their 52-week lows at the moment.

Despite the fact that these businesses have recently experienced a correction, they are fundamentally sound, have solid financials, excellent return ratios, and are currently trading at attractive valuations.

#1 Geojit Financial Services Geojit Financial Services is the first company on this list.

The Geojit Group’s flagship company is Geojit Financial Services. It is a business that provides investment services in India, with its headquarters in Kochi, Kerala.

It was the first company in India to offer online trading, developed the franchise model of sub-broking, established joint ventures in West Asia, and launched commodity futures trading in pepper, cardamom, gold, and silver. Was.

Life and general insurance, commodity derivatives, portfolio management services, and equity and mutual fund derivatives are among the company’s product offerings.

The shares of the company are currently very close to trading at their 52-week low. In the past year, Geojit shares have lost 32% of their value.

On the decline..

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On the downfall..

This might be because of expanded contest. Even established players like Angel Broking are feeling the effects of the fierce competition in the brokerage sector.

Geojit has reported a profit of 660 million (M) for the first three quarters of FY2023. The company has maintained its profitability.

The business made a profit of Rs in the fiscal year 2022. 1,429 million on sale 5,000 million The company wants to get into the distribution business to stop being so dependent on the broking segment for its income.

The company currently trades at a PE multiple of 10.3x, which is significantly lower than the industry average of 15.4x.

The price to book value (P/BV) multiple is 1.8x at current prices, which is lower than the industry average of 2.5x.

#2 Manali Petrochemicals Manali Petrochemicals comes in second on the list.

Manali Petrochemicals is a manufacturer of petrochemical products, including Polyols, System Polyols, Propylene Oxide (PO), and other allied products. It is a member of the AM International group.

The products of the company are substitutes for imports and are intended for a wide range of end-user industries. Since it is the only Indian company in this industry, you could say that the company has a virtual monopoly.

In the past year, the shares of the company have lost a whopping 46%.

Manali Petrochemicals - 1 Year Performance

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Manali Petrochemicals – Yearly Performance The company’s situation began to deteriorate when it reported weak quarterly performance for a second straight quarter.

Sales are down 32% and net profit is down 83% when compared to last year for the nine months ending in December 2022!

Manali Petrochemicals reports a profit of 511 million for the nine months ending December 2022, compared to a gain of 3,071 meters for the same period last year.

The price of the company’s products is going down, but costs are going up, which is hurting profits.

Around 40% of the organization’s business go to Europe…so the concern of downturn in the UK and the effect of the power emergency are likewise a portion of the elements influencing the organization’s exhibition.

One more purpose for the lackluster showing is contest. International players compete with the company because they import cheaply into India.

Capacity expansion is currently underway at the company. The polyester polyol plant is being built in two stages.

Compared to the industry average of 30.5, the company is trading at a PE multiple of 8.7 times at current prices.

#3 Heranba Industries Heranba Industries comes in third on this list.

One of India’s leading agrochemical companies is Heranba Industries.

The Synthetic Pyrethroids market is dominated by this company. Pyrethroids play an important role in crop care, pest control, and environmental health.

Major companies like PI Industries, Sharda Cropchem, UPL, Rallis India, and Dhanuka Agritech are among its customers.

The shares of the company have decreased by more than fifty percent over the course of the previous year, and they are still at a 52-week low.

The company’s failure to meet guidance and market expectations is the cause of the sharp correction.

Heranba Industries - 1 Year Performance

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Heranba Industries’ Yearly Performance The company reported weak quarterly results for the December 2022 quarter. The quarter’s revenue was 2.8 billion (bn), down 29%.

Pricing constraints brought on by the geopolitical situation, inflationary pressures, and a lack of demand all contributed to the decline in revenue. Due to high inventories, the domestic technology industry also experienced sluggish demand.

Due to rising power and freight costs as well as higher costs for raw materials, operating profit decreased 64% year-over-year. Operating profit margin decreased to 9% from 18% year-over-year. Additionally, net profit has decreased 73%.

The lockdown in China also had an effect, as China accounts for 20% of the company’s revenue.

The management has expressed a subdued outlook for the foreseeable future, further harming the mood.

Heranba, on the other hand, has the capabilities to launch new products as well as a robust product portfolio and distribution network to help it enter regulated markets.

The company intends to take advantage of the significant growth opportunities in the agrochemicals sector, which will soon see the expiration of several patents on molecules.

The company’s PE multiple is 8.7x at current prices, which is significantly lower than the industry average of 27.7x.

It has a price to book value ratio of 1.5 times, which is higher than the industry average of 5.3 times.

#4 Shreyas Shipping The fourth group is Shreyas Shipping.

The company leads the domestic coastal container shipping market. The company has expanded into logistics, transportation, warehousing, and distribution services over the years.

Being a part of the Transworld group has advantages, as the group has previously supported Shreyas Shipping financially.

The shares of the company have lost 30% over the past year, and they are currently trading close to their 52-week low.

Shreyas Shipping - 1 Year Performance.

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View the entire Shreyas Shipping – Performance for a Year image.

One of the few industries that greatly benefited from the Russo-Ukrainian War was shipping. When compared to a year ago, major tanker spot freight rates have increased approximately 8 to 9 times.

The shipping industry, on the other hand, is cyclical. Furthermore, China’s weakness and sluggish demand probably have a cyclical effect.

Because China controls the global market for container manufacturing, the obstacles are enormous. Additionally, containers are not gaining much traction in India. With very low requirements, small rail operators and coastal shipping operators are in need of containers.

For the next three years, Shreyas Shipping embarks on a significant capex plan of $3 billion for the acquisition of new ships and dry-docking costs. Shreyas Shipping currently has a limited capacity. However, by 2025, this will change.

The company is currently trading at a P/BV ratio of 0.7x, which is lower than the industry average of 1.1x.

#5 Supriya Lifesciences Supriya Lifesciences comes in last on the list.

Laid out in the year 1987, Supriya Lifesciences is a worldwide driving maker of Dynamic Drug Fixings (APIs).

Additionally, it focuses on products in a variety of therapeutic categories, such as antihistamines, allergens, vitamins, anesthetics, asthmatics, and others.

Due to three poor quarters in a row, the company’s shares have decreased by 60% in the past year.

Supriya Lifesciences - 1 Year Performance

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Supriya Lifesciences – Yearly Performance The pharmaceutical company’s December 2022 quarter revenue of $1 billion was down 10% year-over-year. However, margins had decreased by 13.4% from 32.8% (YoY) and operating profit had increased to 63.4% at the level.

The interest for the organization’s items was impacted because of the lockdown in significant Chinese urban communities and a drop popular for the two new items.

The management of the company has stated that two CMO/contract manufacturing opportunities are close to being finalized. It is likewise chipping away at its Research and development pipeline to expand the scope of items and restorative choices.

The company’s current price-to-book value (P/BV) is 2.3 times that of the industry average (3.9 times).

The organization is exchanging at a following a year (TTM) PE different of 15.4 times, as against the business normal of 35.8 times.

What other high-quality stocks are currently trading close to their 52-week lows?

In addition, the following is a list of companies whose fundamentals are sound and whose shares are trading close to their 52-week lows.

View the Full Image (EM) Good luck investing!

Disclaimer: This article only serves as information. It is not appropriate to treat this as a stock recommendation.


Good luck investing!

Disclaimer: This article only serves as information. It is not appropriate to treat this as a stock recommendation.


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