Hi. Looking at the volatility of the market going on now, you must have realized that the stock market is quite risky.
There is a market correction in enough companies that have come past your 52-week high.
So today we will tell you about 4 High Growth Large Cap Stocks which are available at a 51% discount from your 52W High.
In this list, we will tell you about those stocks whose:
The numbers in the video we have considered at the market closing of June 14, 2022.
The stock which is trading at the highest discount from its 52-week high, we will cover last.
So let's start today's list.
The first company on our list is Larsen & Toubro Infotech Limited.
Larsen & Toubro Infotech Limited is an IT services provider company that is a subsidiary of Larsen & Toubro Limited.
It provides IT services- Application Development, Maintenance, Enterprise Solutions, Infrastructure Management Services, Testing, Analytics, AI, and Cognitive.
The company announced the merger proposal with Mindtree on May 06, 2022.
After the merger, the name of the combined entity will be 'LTI Mindtree Limited' in which 68.73% shares will be held by Larsen & Toubro Limited.
The company's share price was trading at a discount of 44.82% to its 52-week high on June 14.
The company's core strengths are a healthy business risk profile and an established market position.
The company's market position and competencies are strong in its core vertical, My Coffee.
Apart from the good growth and new clients in the digital space of the company, their dependence on top 5, 10, and 20 clients is decreasing.
The active customers of the company have increased from 261 as of 31st December 2017 to 486 as of 31st March 2022.
Due to this, the company's revenue compounded at the rate of 13% in five years.
The major weakness of the company is its geographical concentration in the revenue profile.
65% of the company's revenue comes from North America (USA).
Any regulatory changes or slowdowns taking place in the USA can have a direct impact on the operations of the company.
As you can see on your screen, we have shown some key financial and technical ratios of the company.
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 down than the 200 DMA then the stock can be said to be bearish.
In terms of RSI, RSI values ​​above 30 are generally considered oversold, and thus a trend reversal ie a downtrend can lead to an uptrend.
Similarly, an RSI value above 70 is considered overbought, and a trend reversal is likely.
The other company that we are going to talk about is Zydus Lifesciences Limited
Zydus Lifesciences Limited was earlier known as Cadila Healthcare Limited.
It is an Indian multinational pharmaceutical company that manufactures generic drugs and consumer welfare products.
The company's share price was trading at a discount of 46.53% to its 52-week high on June 14.
One of the company's biggest strengths is that it is a market leader in high-growth lifestyle segments such as Gastrointestinal, Cardiology, Respiratory, and Gynecology.
Zydus Lifesciences is one of the top 5 companies in the domestic formulations market.
In addition, the company recently received approval from the US FDA to commercialize a generic acne drug with market size of $195 million.
Along with this, he has also got approval from the USFDA for chemotherapy and generic antacids.
Apart from this, the company operates various brands like Sugarfree, Glucon-D, etc. which is a growth driver for the company.
The company's major weakness is regulatory risk in domestic and international markets, particularly in the USA.
As you can see on your screen, we have shown some key financial and technical ratios of the company.
The third company on our list is Steel Authority of India Limited (SAIL).
SAIL is one of the Maharatna of India and one of the largest steel-making companies in the country.
The government of India holds a 65% stake in the company.
SAIL's plants are mainly located in the eastern and central regions of India which are the domestic source of raw materials.
The company's share price was trading at a 51.17% discount from its 52-week high on June 14.
The biggest strength of the company is the support of the government they have got.
Being a Maharatna gives the company autonomy and flexibility in making investment and capital expenditure decisions.
But as you go, the steel industry is a highly cyclical industry in nature that depends on the economy, interest rates, and seasonality of demand and supply.
Also, the company's biggest weakness is its exposure to commodity price risk, which has put pressure on its operating margins from coffee salons.
As you can see on your screen, we have shown some key financial and technical ratios of the company.
The last company we are going to talk about is Info Edge.
Info Edge is India's premier online classifieds company with a large portfolio of brands.
The company has several brands in different fields such as naukri.com, 99acres.com, jeevansathi.com, and shiksha.com.
Info Edge also acts like 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 other brands like Zomato, Policy Bazaar, Usta, and many more.
The company's share price was trading at a discount of 51.68% from its 52-week high on June 14.
The biggest strength of Info Edge is its strong brand identity and market leadership position which they use well to foray into new segments.
Along with this, their diverse revenue model also gives the company an edge.
Its extensive dealer network helps in providing better service to the customer as well as in overcoming the competitive challenges in the computer services industry.
At the same time, they have a weakness, they can easily be emulated in such a business model.
Due to this, the competition in the market seems to be increasing.
As online real estate and online matrimonial platforms have seen the entry of many new players.
In the coming time, the effect of big competition can be seen on the revenue and margin of the company's two brands '99 Acres' and 'Jeevansathi.com'.
So here were the 4 large-cap companies that are currently at the biggest discount from their 52-week high.
We remind you that these videos are for educational purposes only, and do not recommend any kind of buy/sell.
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