Hello! The 52-week high or low is a technical indicator that becomes an important factor for traders and investors in predicting the future price movement of any stock.
Especially if we talk about the 52-week low, there are many investors who like to buy undervalued stocks
That's why today we bring you 5 such high-growth companies that are trading near their 52-week lows.
Generally, a stock's 52W high is considered a resistance level and similarly, a 52W low is considered a support level. But it can also prove to be tricky.
There is no guarantee that a stock that is trading near its 52-week low will not go below that.
So you should not invest in any stock only on the basis that it is trading close to its 52W high or low.
For today's video, we have considered those stocks whose:
The numbers in the video that we have considered are at market closing on August 08, 2022.
The company whose stock is closest to its 52-week low, we'll cover at the end. So let's start today's list.
The first company is Intellect Design Arena Limited.
Intellect Design Arena Limited is involved in the business of providing technology in the fields of Banking, Financial Services, and Insurance.
The company's cash management products such as CashNow, Cash Extra, and CashPower are tailor-made for small, medium, and large enterprises.
These can give the company a good scope to expand beyond banking, financial services, and insurance in the times to come.
The stock is trading 9.35% above its 52-week low.
One of the strengths of the company is its diversified revenue. The revenue concentration of most companies in this sector is very high.
But the company has 270+ global customers distributed in 97+ countries.
Most of the company's revenues come from developed markets such as the USA, UK, Canada, and the EU.
Apart from this, markets like India have also contributed very well to the revenue growth of the company.
This type of diversification helps the company immensely in times of global uncertainties.
A significant risk aspect for the company is regulatory changes in the banking and financial sector.
This sector is heavily regulated worldwide and that too from time to time. So, the company has to pay a lot of attention to the rules of the history of each country.
It also has a few central banks in its client base. And the rules in the BFSI sector can change anytime according to the needs of the authorities and the economy.
Now you can see the key financial and technical ratios of the company on the screen.
We have also included the prices of 2 technical indicators so that you can see the stocks from a technical perspective as well.
We have used 2 indicators- 200 days simple moving average i.e. 200 days SMA and RSI (14).
If a company's stock price is trading above the 200 DMA, the stock can be considered bullish.
And if the price is trading below compared to the 200 DMA then the stock can be said to be bearish.
Talking about the RSI, an RSI value below 30 is generally considered oversold, and a trend reversal is likely to lead to an uptrend.
Similarly, an RSI value above 70 is considered overbought, and a trend reversal is likely.
The second company that we will talk about is Mastek Ltd.
Mastek Ltd India is a leading vertically-focused enterprise technology solutions provider.
After nearly 4 decades in the IT industry, the company has evolved itself from an IT solutions provider to a digital transformation partner.
The company mainly provides services like Application Development, Application Maintenance and Support, ERP and Cloud Migration, Business Intelligence, and Analytics.
The stock is 9.11% above its 52-week low.
The company's recent acquisition, Evosys, has helped them provide end-to-end solutions that have helped improve their margins from 14% to 21%.
With such acquisitions, it aspires is determined to achieve the target of US $ 1 billion revenue in the next 5-6 years.
New acquisitions, increasing deal size, expanding sales and marketing and gains in UK market share are all playing a big role in the company's revenue growth.
Also, the company is looking to scale up its business to reduce geographic risk.
Mastek had reported a weak quarter in Q1 FY23 with lower-than-expected revenue and margin performance.
The company's revenue was down 1.9% QoQ mainly due to NHS, UK account.
Their major software program was put on hold due to political uncertainty and the ongoing organizational restructuring in the NHS, UK.
While the UK government's technology spending has been slowing down over the last few quarters, so, the company might face difficulties cracking new deals in the near term.
As you can see on your screen, we have shown some key financial and technical ratios of the company.
The third company is Gland Pharma Limited.
Gland Pharma started its journey with contract manufacturing of a few products.
Today, Gland Pharma is one of India's largest and fastest-growing injectable-focused companies.
The company's footprint includes markets like the USA, Europe, Canada, Australia, and India in 60 countries.
The stock is 6.81% above its 52-week low.
The company's R&D expenditure in the quarter stood at around Rs 41 crore, which accounts for 4.8% of the total sales.
The company has 1,557 products registered globally. The company has filed a summary of new drug applications for 6 ANDAs this quarter.
As of June 2022, the company has approximately 316 ANDA filings in the US.
One worrying fact for the company is the Financial Results of the company for quarter 1 of FY23.
The company's revenue declined by 26% in the year which is one of the sharpest declines for the company. The company's revenue declined across geographies.
The company's revenue in India has declined by 72% on a year-to-year basis.
Let us now look at the company's financial and technical ratios.
The fourth company on our list is GAIL India Limited.
GAIL India is an integrated Natural Gas PSU Company. It owns 11,500 km of natural gas pipeline, 2,300 km of LPG pipeline, 6 LPG gas processing units, and a petrochemical facility in India.
The company has a presence in many cities as City Gas Distribution. The stock is 6.51% above its 52-week low.
The company has leadership in natural gas transmission. GAIL enjoys a dominant position in this space with a 70% market share and a pipeline network of 13,350 km.
Setting up pipelines requires a lot of investment and regulatory clearance given the high entry barriers in the sector.
Because of this, GAIL has the power to convert the favorable energy policies of the government into a good opportunity in the times to come.
In Dec 2011, it signed an agreement with Chenier Energy's Sabine Pass liquefaction plant and Cove Point terminal plants in the US to import 5.8 MMTPA of LNG from Cool Mill.
The pricing formula for these contracts is linked to the HH-index, which is the benchmark index for natural gas in the US.
HH-linked contracts keep GAIL constantly exposed to price risk, especially in these volatile times.
Now you can see the key financial and technical ratios of the company on the screen.
The last company is Alkem Laboratories Ltd.
It is involved in the development, manufacturing, and selling of pharmaceutical and nutraceutical products.
Its portfolio includes well-known brands such as Clavam, Pan, Pan-D, and Taxim-O. These brands feature in the top 50 pharma brands in India.
The company has 20 manufacturing plants in different locations in India and the United States.
The stock is 5.53% above its 52-week low.
It is continuously launching new products in chronic portfolio in rapidly growing segments- central nervous system, cardiac, and anti-diabetes, investing heavily in its marketing to scale-up brands.
However, in the long term, these initiatives will increase the company's profit margins, but their implementation will take time.
Also, due to significant pricing pressure in the US generic pharma market, the company's revenue declined 8% year-on-year in the last quarter.
Its direct impact has also been seen in the results of the company.
In Q1FY23 for the company in foreign exchange, approximately Rs. 500 million was lost due to which their margins were also hit.
Experts say that due to the slowdown in the US, this trend may continue in the coming one or two quarters.
Let us now look at the company's financial and technical ratios.
So these are the 5 high-growth companies that are trading in your 52-week view.
We remind you that this video is for educational purposes only, and is not a buy or sell recommendation of any kind.
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