Hi, Indian markets have bounced back to some extent in the last one month.
Nifty 50 and Sensex have gone up by about 3% in the last one month.
However, due to the heavy correction in the last one year, many companies are trading at a discount of up to 57% from their 52-week high.
But remember that the stocks which are at discount from 52W high, it does not mean that they will go above their current levels or they cannot go further down.
So you should not invest in any stock just on this basis, it is an additional tool that can help you.
We only considered companies that have:
The stock which is available at the highest discount from its 52-week high will be discussed in the last.
In this video, we have considered the numbers at the market close on 22nd November. So let's get started!
So the first company in today's list is Info Edge (India) Limited.
Info Edge is a premier online classifieds company in India with a wide portfolio of brands.
The company has brands in different fields such as
Naukri.com (Online Recruitment) 99acres.com (online real estate) jeevansathi.com (online matrimonial) shiksha.com (online education information services).
Info Edge also acts as an investor.
The company has invested in several online or platform-based start-ups and is actively growing its investment portfolio.
The company has invested in brands like Zomato, Policy Bazaar, Usra, and others.
InfoEdge's share price is trading at a 37.2% discount from its 52-week high.
The biggest strength of Info Edge is its strong brand recognition and market leadership position which it uses to enter new segments.
Along with this, their diversified revenue model also gives the company an edge.
The company's extensive dealer network helps it to overcome competitive challenges in the computer service industry while providing superior customer service.
But to some extent, the business model can be easily copied. Because of this, the competition in the market seems to be increasing.
For example, the entry of many new players has been seen in online real estate and online matrimonial platforms.
Going forward, the impact of increased competition may be seen on the revenue and margins of the Company's two brands '99 Acre' and 'Jeevansathi.com'.
Now you can see some key financial and technical ratios of the company on your screen.
The next company is Dr. Lal PathLabs Limited.
Dr. Lal PathLabs is one of India's leading consumer healthcare brands in diagnostic services.
The company has a vast nationwide integrated network where it provides diagnostic and allied healthcare tests and services to its customers.
The company provides services to individual patients, hospitals, other healthcare providers, and corporates.
Although the company's operations are available in India, the company's majority of revenue comes from North India.
The share price of Dr. Lal PathLabs is trading at a 38.3% discount from its 52-week high.
One of the major strengths of the company is its financial risk profile.
The company has maintained sufficient cash reserves which it uses for its capital expenditure.
Due to this, the company does not need any type of debt funding, which reduces its interest cost significantly.
Moreover, the profit of the company has been improving at 20% CAGR over the last 3 years
and has grown at 23% CAGR during the previous 10 years, proving that Dr. Lal Path Labs continues to be on a strong growth trajectory.
A major problem for the company is the fierce competition in this industry.
There are many players in the diagnostic services market, who provide almost similar services.
Because of this, there is a lot of pricing pressure on the company.
In addition, the diagnostic industry is highly fragmented with only a 17% share for diagnostic chains, which also face intense competition.
Now you can see the company's key financial and technical ratios on your screen.
The next company is Mphasis Limited.
Mphasis is a mid-sized IT company serving diverse sectors like banking and capital markets, emerging industries, IT, communications and entertainment, and insurance.
Today the company has a widespread presence in North America, Europe, India, and other countries.
Mphasis share price is trading at a 44.7% discount from its 52-week high.
A major strength for the company is the strong support they are getting from the Blackstone Group, which owns around 55.7% stake in the company.
This gives the company easy access to Blackstone's investment portfolio.
Blackstone continues to grow its investments and assets under management, making it easier for the company to acquire new clients.
Moreover, Mphasis is the only IT company in the Blackstone Group's whole portfolio.
But the company provides service in the segment of Indian IT and BPM i.e. Business Process Management where many big players are already present.
This intense competition affects the pricing flexibility and margins of the company.
In addition, there are issues in the IT industry with inherent risks such as wage inflation, employee conflicts, and currency fluctuations.
Now you can see some key financial and technical ratios of the company on your screen.
The last company is Sona BLW Precision Forgings Limited.
Sona BLW Precision is an automotive technology company primarily involved in designing, manufacturing, and supplying automotive systems and their components.
The company manufactures a variety of assemblies, gears, conventional and micro-hybrid motors, BSG systems, and EV traction motors.
These are used in almost all vehicle categories.
The share price of Sona BLW is trading at a 48.3% discount from its 52-week high.
One of the key strengths of the company is its strong order book.
Today the company has a net order book of Rs 205 billion, which is around 9.6 times their FY22 revenue.
A strong order book means stability in the company's revenue in the long term.
But in FY21, the company's largest customer contributed 30% to its total revenue, along with the top 5 customers contributing 58%.
If any one of these clients ever says goodbye to the company under any condition, then it can have a deep impact on the financials of the company.
Let us now have a look at the financial and technical ratios of the company.
The last company is Gland pharma ltd.
Gland pharma started its journey with contract manufacturing of a few pharma products.
Today, it is one of the fastest and largest growing injectable-focused companies.
The company's footprints are spread across 60+ countries like the US, Europe, Canada, Australia, and India.
The share price of Gland pharma is trading at a 57.9% discount from its 52-week high.
The company's R&D expenditure in the recent quarter stands at 3.8% of its overall sales.
The company has a registration of 1557 products globally.
The company has filed 6 ANDA (Abbreviated New Drug Applications) in this quarter.
As of 30th Sept 2022, it has 322 ANDA filings in the US.
The company's main impact is from quarter 1 2023 results.
The company's revenue has declined from the initial 6 months of the last year and it is the sharpest decline.
The company's revenues across all the geographies have quite declined.
In India itself, its revenue has declined by 42% YoY.
This decline may be due to this year's shutdown of the insulin line
This caused a loss of 40-50 crores.
Let's look at the company's financials and technical ratios.
So these were the top 4 companies that are trading at a discount of up to 57% from their 52-week high.
Let us remind you that these videos are for educational purposes only, and do not constitute any kind of buy or sell recommendation.
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