Saturday, September 14, 2013

Beaten but not out: Stocks trading at all-time lows hold potential to yield better returns

Beaten but not out: Stocks trading at all-time lows hold potential to yield better returns

 ETIG analysed some of the beaten-down stocks and has listed a handful of companies which still hold the potential to yield better returns in the medium to long term.

ETIG analysed some of the beaten-down stocks and has listed a handful of companies which still hold the potential to yield better returns in the medium to long term.

One out of every five companies in the S&PBSE list of 500 companies now trades at a price lower than what it was on March 9, 2009, when the markets plunged to a new low after the financial crisis of 2008, an ETIG analysis shows. That may be cold comfort for sceptical investors against the backdrop of a slowing economy and a battered local currency.

A majority of these 'cheap' stocks are from sectors such as capital goods, power and construction, which have been severely beaten down because of policy, execution and funding issues.

Are valuations still attractive and should investors take another shot at buying some of these stocks? ETIG analysed some of the beaten-down stocks and has listed a handful of companies which still hold the potential to yield better returns in the medium to long term.

NMDC

NMDCBSE 0.93 % will benefit thanks to the recent fall of the rupee. During the past year domestic iron ore prices were cut several times to match global prices. However, the over 15 per cent fall in therupee over the last two months provides cushion from any further downside in global iron ore prices. At the current market price, NMDC is much cheaper than its global peers (price-book value ratio of 1.5, compared with 3 for global peers). This discount may not be justified given the cost advantage NMDC enjoys.

ALLCARGO LOGISTICS 

The slowdown in the economy has severely impacted the earnings of Allcargo LogisticsBSE 0.93 % in FY13. After two years of earnings growth of over 30 per cent, the company reported an 8 per cent decline in profits in FY13. Its stock price has corrected by as much as 42 per cent in the past year alone. But having built logistics infrastructure, it could be one of the major beneficiaries as both exports and imports gain pace.

PRAJ INDUSTRIESBSE 1.86 %

The company's order book expanded to Rs 1,010 crore in the quarter to June, and 56 per cent of the orders are from overseas. The recent spike in oil prices and the rupee's depreciation will both benefit the company. Besides, it is debt-free and over Rs 200 crore or one-third of its market value is in cash. It has also recently diversified into new businesses such as water treatment, which today contributes close to 30 per cent of its total revenues.

The company's low valuations have driven the dividend yield above 4.5 per cent. It has also started construction of Asia's first second generation ethanol plant, which if successful in attracting investors, will be a key trigger.


Many stocks that trade near all-time lows hold the potential to yield better returns
NTPC

The stock has been impacted due to the negative sentiment prevailing in the power industry. However, NTPC stands out among other utilities due to its focus on assured fuel and power purchase agreements for each plant. Going ahead, a healthy balance sheet and clarity on fuel supply may lead to NTPC meeting its power generation targets for the twelfth five-year plan.

JP ASSOCIATES

A high Rs 55,000 crore debt has been a drag on the JP Associates stock, which has shed 44 per cent in the past three months but is seeing a moderate rise now. The management's plan to sell stakes in some of its core assets is expected to improve the company's financials in the next few quarters. While many infrastructure companies are planning to pare assets, JP Associates stands out among them because most of its assets are operational.

MRPL

MRPL's market capitalisation of less than Rs 5,500 crore is at a decadal low. The company incurred heavy losses in FY13 and in the first quarter of FY14 owing to a weak rupee and delayed projects. The captive power plant supporting its expanded capacities got delayed by nearly 18 months, resulting in lower refining margins.

With its power plant likely to be operational by October 2013, MRPL will be able to convert low cost heavy crude oil into high priced products such as diesel. Its other key projects such as the 440,000 tonne per annum polypropylene plant and single-point mooring to handle big crude carriers are also near completion. Commissioning of these projects will lead to improved profitability starting from the last quarter of this fiscal.

BHEL

Being the largest company in the power equipment industry with 20 GW production capacities, BHEL will be one of the biggest beneficiaries of any turnaround in the industry. The BHEL stock has been battered due to a depleting order book, weak revenue growth and margin pressures. The stock has fallen over 70 per cent in the past three years, hitting an eight-year low of Rs 101.50 last month.

Interestingly, the stock has seen a sharp 40 per cent recovery since then and now quotes at Rs 141.55, mostly due to the government's plans to speed up approval for infrastructure projects. While the current momentum is expected to ease soon, the stock is still a value buy at current levels from a medium to long-term perspective.

Source : By ET Bureau

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...

Labels

85th Academy Awards in Hollywood Aam Aadmi Party Aanjaneya Lifecare Aastha channel ABG Shipyard Abhinav Jhunjhunwala-Prerna Sarda Acharya Balkrishna Adani Group Aditi Kothari Aditya Swamy Adlabs Films Limited AirAsia Ajay Piramal Alan Greespan ALBERTA LA GRUP Alfred Cointreau Alibag Alisher Usmanov - Russian billionaire Alkesh Tandon-Raakhe Kapoor Amalgamated Bean Coffee Trading Company Limited Amar Chitra Katha Amartya Sen's daughter Nandana Amish Tripathi Amit Bhatia-Vanisha Mittal Amit Burman Amit Wilson Amitabh Bachchan AMP Technologies an online real estate portal Anand Kripalu Anand Mahindra Anant Media Pvt Ltd Anil Jindal Anjali Bansal Anne Hathaway annual report of Prime Securities Anu Aga Apollo Hospitals Enterprise Ltd. Apple Aravind Eye Care System Architect Hafeez Contractor Architecture Arindam Chaudhuri Arokiaswamy Velumani Arvind Kejriwal Arvind Mills Ashni Biyani Ashok Gajera ; Russell Mehta Ashok Piramal Group Ashok Soota Asia 7 AstraZeneca Pharma Atlantic Media ATT author and CEO Autoline Industries Aviation Ayesha Thapar Azim Premji Baba Kalyani Group Baba Ramdev Bain Capital Bangalore and Hyderabad Bank Loan interest rates BankBazaar BANKING TERMS Being Human Bekkit Benjamin Graham Bennett Bennett Coleman & Company Ltd Berkshire Hathway Best Data Recovery Companies in India Best denim brands BF Utilities Bharat Parekh and Ravi Jethani - LIC Agents BharatStudent.com Bharti Infratel Bhulabhai Desai Road off Breach Candy Bhupendra Panwar Big Cinemas Big Gulp and Bakers Street Bilcare Bill Gates’ Corbis photographic collection Bill Miller Binod Chaudhary Birla Pacific Medspa Birmingham-based 2 Sisters Food Group (2SFG) Biz Daughters Black Money Black Swan Theory Block Deals Blue Dart Express Blue star Bluegape BMC BOC India Bombay Blue in Kurla Bombay Dyeing Books BPCL Brady Brand Capital Brands Brazilian private equity firm 3G Capital Brickwork Ratings India Private Limited Brickwork Ratings India Pvt Ltd BRICS BS BSE Buddh Circuit Budget 2013: Do we really need a Women’s bank Burger King Burmans Burn (from Coca-Cola) Business Insider Business of Marriages Business Standard Business World Buzzanytime Cadbury House Cadbury India Canaan Partners CanvasM Capillary Technologies Captain C P Krishnan Nair CARE - Credit Rating Agencies of India CARE and PC Jewellers Career Point Carmichael Road Cash Overseas (Paywall) Casino Resort Castrol Catamaran Investment Private Ltd. Catholic Syrian Bank CDMA Mobile Technology Central Parking Services Chairman of Sajjan India Ltd Charged Voids Chart Moving Average In Excel Chennai CHHATRAPATI SHIVAJI INTERNATIONAL AIRPORT Chick-a-fil Chicken came First Chitrangada Singh Cinemax Cinnamon Teal Citigroup Coal India Coca-Cola Coffee Coffee Day Coffee Day Group Coffee Day Resorts and Global Cognizant Cointreau Coleman and Co Ltd Colvyn Harris Comic books Commodity stocks Companies Company name change Compucom Computer-Generated Women Concierge Construction Cost Copper Chimney Coppock Curve Indicator Analysis Core Education and Technologies Core Projects and Technologies Corporate Centre Cost of a farmhouse Party Costa Coffee Could9 Credit Analysis and Research Ltd. (CARE) CRISIL CRISIL Limited Crorepati Crowdsourcing Currency D-Mart D. Subbarao Dabur Dalai Lama Dalal Street top investors Dalit Entrepreneur Dan Roarty Darshan Patel David Moratilla Daytona 675 and Speed Triple bikes DB Realty DCNS Deccan Gold Mines Deepak Fertilisers Deepinder Goyal Defence Defence-related stocks or military stocks Delhi Assembly Elections 2013 Delhi gang rape case Delhi NCR Delhi Stock Exchange Dell's EqualLogic Della Adventure Delta Corp Demark Technical Indicator Design Atelier Developer Khemchand Kothari Devi Shetty Dharmesh Jain Dharmesh Shah Dhiraj Rajaram DI Corporation Dia Group's sister concern - Lifestyle Tradelinks India DigitalGlobe Disa India Dividend Stocks DLF DLF Emporio DLF Galleria Dollar Domino's Double Top technical analysis DSE Durex DVR Share Easun Reyrolle Education Startups Educomp Solutons Ltd. Edward Snowden Edwin Lefevre Eicher Motors Eko Elections EMA – Exponential Moving Average Entrepreneurs ET ET 500 ET BUREAU ETIG Database Evalueserve Everonn Edu Everstone Capital Expensive houses in the world Expensive Stocks Faering Capital Falguni Nayar FAME Farmax India Ltd. FDI Fed’s interest rate Fidelity Investments FII holding in BSE 500 Finacle Financial crises Financial Technologies Fineotex Chemical Finnish real estate company Exilion first McDonalds restaurant in Kerala in Lulu Mall Fitch Ratings India Private Ltd. Flappy Bird Flipkart Founder - HCL Technologies France' Groupe SEB Fresenius Kabi Oncology Frugal innovation FTIL Fund Manager Desktop Software Future Group Games Ganga Gatorade Gautam Singhania Gayatri Joshi GBP GE Shipping GEICO Genesys International Geodesic Ltd. GeoGlobal’s Jean Paul Roy Geometric George Soros Girish Patel Gita Gopinath Gitanjali Gems and Tara Jewels Gitanjali Gems Ltd Gitanjali investments Glaxo Smith Consumer Healthcare GMR Infrastructure Ltd Godrej Agrovet Godrej Industries Godrej Industries' agriculture business unit Agrovet Goenka brothers goindia.about.com Gold Gold Loan Companies Goldman Sachs Google GRAND CONCIERGE Graphic Designer Great investors Green Earth Resources and Projects Ltd.(formerly Austral Coke) Greycells Entertainment GSPC GTL Infra Gujarat Gujarat Chief Minister Narendra Modi Gurgaon Gursimran Mann GV Films Haagen-Dazs Halle Berry Happiest Minds Technologies Haridwar Harvard Haryana Hawkins HBJ Capital HCL Infosystems HDFC Bank CEO Aditya Puri's daughter Healthcare Hector Beverages Hedge fund billionaire Daniel S. Loeb High Dividend Yield Stocks High Profile Weddings HIGHLIFE ASIA HINDALCO Hiranandani Gardens Hiranandani Group Hiren Patel Architects Hitachi Hockey India League's Delhi Waveriders team Hollywood Honeywell Automation India Hotmail how to identify multibagger stock ideas How To Install Odin Share Trading Software HPCL http://thecoalition.in http://www.rentmeafarm.com HUL Hyde Park in Mumbai Hyderabad I-T department IAS ICICI Bank ICRA ICRA Limited IIPM IIT India India Infoline India Today India’s first river-linking project Indiamart.com Indian Businessman Indian Farmhouses Indian School of Business Indian Startups IndianOil Corporation Ltd (IOCL) Indigo Indrajal Infosys Innox Inorbit Malls Intelligence Bureau (IB) Intense Technologies International property consultants Internet IPO Intraday Charting Software India IOC IOL Netcom IPL IPO Iran Iranian oil Ireland Iron Mountain- safe-keeper of the wills of Princess Diana and Charles Darwin ISI Kolkata Israel Italian luxury firm Bulgari ITC Jasuben Pizza Jaypee JAYPEE GROUP Jennifer Lawrence Jesse Livermore Jessica Law Jewellery Jhon Templeton Jignesh Shah Jim Rogers JK Paper JM Financial John Abraham John Rockefeller John Rothchild Jones Lang LaSalle Jones Lang LaSalle India Jones Lang Laselle journey from trader to investor JSPL and Adani Power JSW Steel Just Dial Justdial.com K P Narayana Kumar K P Singh K Raheja Corp Kal Airways Kalanidhi Maran Kalanithi Maran Kalpana Saroj Kamani Tubes Ltd Kanwar Deep Singhand his wife Mrs Harpreet Kaur Kareena Kapoor ;Pakistan's mobile company QMobile Karly Karuturei Global Karuturi Global Limited (KGL) Karuturi Global Ltd. Kashmir Kaunsa.com KDJ Indicator KDS Corporation Kennametal India Kerala businessman;Great Scotland Yard;MA Yusuffali;Lulu Group Kerala Chief Minister Oommen Chandy Kerry Washington KFC KFC (Kentucky Fried Chicken) Khalsa Heritage Center in Punjab Khirni Kingsher Airlines Kishore Biyani Kohinoor Kolkata Korean Pop Kotak Mahindra Bank Kraft Kris Gopalakrishnan Kristen Stewart KSE Kulkarni is President and CEO of Fanuc India Kwality Dairy Ltd. L&T LABONITA GHOSH Lakshmi Narayanan Lalvanis Laminitis Landmark Leela Hotels LESCONCIERGES LIC LIC Chairman DK Mehrotra Life of Pi Lifestyle Management Companies Lijjat Papad List of PE firms in India Lite Bite Foods London-based Italian restaurant Scalini Lullu Group and EMKE Group LuLu group chief Yusuffali luxury brands LUXURY CONCIERGE CHINA LUXURY CONCIERGE COMPANIES LVMH M & B Switchgears M P Aggarwal Madhabi Puri-Buch Magazine Magellan Mahabharata Management Mythos Maharaj Kumar Khanderao Shivajirao Gaekwar Maharaja Whiteline Maheshwer Peri Malaysia Airlines Manappuram Finance Mand B Switchgears Manipal Education and Medical Group Manish Kejriwal Manjushree Technopack Marico Market Simulation Software For Stock Market Price Forecasting Marten Pieters Maruti Suzuki Marwari-Owned Companies Mavji Bhai Patel Maxwell Industries Ltd. MBA McDonald's McGraw Hill Financial Inc MCX Medimix Megan Mehul Choksi Micky Jagtiani Microsoft Midcap stocks Milind Deora Mindtree Ltd. Miss India Pooja Chopra Mitt Romney’s Former Firm Bain Capital’s MMTC MNC Stocks MobiKwik Mohali Campus in Chandigarh Moserbaer Mother Dairy Motilal Oswal movie catalogue Movies MS Dhoni MT Educare MTV Indies Mu Sigma Mukesh Ambani Mukul Deora Multibagger Stock Ideas Multibagger Stocks Multibagger Stocks of Century Mumbai Mumbai apartment Mumbai-based law firm Manilal Kher Ambalal & Co Mumbai-based Vardenchi Motorcycles Mumbai-born software tycoon Vivek Ranadive Mumbai's Nepean Sea Road Muthoot Finance Mysore N. Jayakumar N. R. Narayana Murthy Naandi Community Water Services Nalanda Nalanda Capital Nalanda Capital India Advisors Pvt. Ltd. NaMo Nandan Nilekani Narayana Hrudayalaya Hospitals Narendra Modi Naresh Hosangady Navi Mumbai Neil Gaiman Nepal's first Forbes billionaire Nestle Net worth Neuland Laboratories Nextant Aerospace NHPC Nifty Crash 2012 NIIT Nikhil Nanda-Shweta Bachchan Nikhil Zaveri Nilesh Parwani Nilgiris Nirav Modi Nita Ambani Nitasha Thapar Nitin Paranjpe Nokia Noodle Bar North Block Norwest Venture Partners NotionPress nse2rich Office Relationships Office Space Oil Marketing Companies Old News ONE CONCIERGE OneLife Capital Advisors online tutoring firm TutorVista Orbit Transport OSCARS Owings & Merrill LLP Palm Beach School Pan India Food Solutions Panipat Papa John's Paras Pharmaceuticals Pascal Witaszek Patanjali Ayurved Patanjali Ayurved Ltd PC Jeweller Ltd PC Jewellers PE fund CX Partners Peninsula Land Penny Stock Perkins Eastman Peter Lynch Pharmaceutical packaging material maker PHL Pidilite Industries Pipavav Defence and Offshore Engineering Company Ltd. Piramal Life Sciences Ltd. Pizza Hut Playboy founder Hugh Hefner Ploughing got posh: A Ferrari for your farm? Politics Pooja Deora Powai Power of Ideas 2012 Premium concierge firms like Les Concierges Services PRIME Prime Focus Prime Securities Private Equity Priyank Sukhija Priyanka Gandhi Prof Gita Gopinath Promoter shares Promoter stakes Property Advisory Firm Knight Frank Property rates PropTiger.com Provident Fund (EPF) PSU PSY PTI PURE Purple Squirrel purvismultibaggerstockideas.blogspot.in PVR Quartz Question from nse2zoom to stockfundoo.com QUINTESSENTIALLY Quintessentially Lifestyle Quotes R K Damani Radhakishan Damani Rags-To-Riches Stories Rahul Mishra Rakesh Jhunjhunwala Rana Kapoor Rapps Rare Enterprises Ratnakar Bank Ravi Subramanian Ravi Venkatesan Raymond Group Chairman Singhania RBI Reading Ready-To-Move House vs Under-Construction One Real Estate Real estate consultant Real Estate Research Firm Liases Foras real estate services firm Jones Lang LaSalle India Real Pillars Consultancy Private Limited Recession Reckitt Benckiser Group Plc Reckitt India recordings of Frank Sinatra RedBull RedBus Rediff Reese Witherspoon Reliable Records Reliance Broadcast Network Reliance Communications; 4G; Anil Ambani Reliance Defence Systems Pvt. Ltd Reliance Industries Reliance Infrastructure Reliance Mediaworks Ltd RentMyText.in Restaurateur Retail REUTERS RIL Rio Rishikesh Robert G Hagstrom Robert Vadra Robo Queen Rohan Murthy-Lakshmi Venu Rohini Nilekani Roopa Kudva Roshni Nadar Malhotra Royal Building and Infrastructure Pvt Ltd Royal Enfield RPG Enterprises RTI Rupee Ruppee Sabeer Bhatia Sachin Tendulkar Safdie Architects Safe Baby Saffron SAIF Partners SAIL Salman Khan Salvatore Ferrancane Sameer Gaur Sampark Foundation Samtel Display Systems Sandeep Gajakas Sarwan 'Sam' Poddar Satya Hinduja Search SEBI Self-Publishing Sensex Sequoia Sequoia Capital Shashi Tharoor Sheth brothers - Bharat Sheth and Ravi Sheth Shoe-laundry business Shree Ganesh Jewellery Shriram City Union Finance Siddhartha Lal Singapore based Mittu Chandilya Skidmore Skore Skyscrapers Smart City SME Rating Agency of India Ltd. (SMERA) Snapdeal Sneha and Sweta Balakrishnan SoBe Societe Generale Sonia Gandhi Sotirio Bulgari Soumya Rajan South Mumbai Spaghetti Kitchen Speciality Restaurants Spice SpiceJet Spire Edge in Manesar Sports marketing firm Rhiti Spot Fixing Spy Satellites Squeakee SRS Group Standalone store in India Standard and Poor's Standard Chartered Bank Starbucks StartupCatalyst.in Startups Statue of Unity Stem Cell Banking Business Stephen Molyneaux Sterling Biotech Steve Ballmer Stock Crash Stock Knowledge Stock strategy Stocks Stocks of Future StoreMore StoreMore Storage Solutions Subex Subroto Bagchi Subway Subway and Pollo Campero Suhail Rizvi Sun Direct TV Super-luxury Rs 100-cr flats Suzlon Energy Swarnim Sankul-I Swiss watch brand Jaeger-LeCoutre (JLC) Syed Asif Ibrahim Syrian Electronic Army Taslima Nasreen Tata Global Beverages Tata Housing Tata Motors Tata Power Tatas retirement home TATASTEEL TechMahindra app called FightBack Technical Analysis Software For Canadian Stocks Technology Ventures Technopak Tehelka Tehri Dam Telangana TERMINAL 2 in Mumbai The Brick House in Gujarat the British company The Deltin The Gangnam Style effect The Harvard Professor from Mysore The Periodic Table Of Alcohol The World's Top 10 Most Innovative Companies in India Thunderbird Thyrocare Thyrocare Technologie Tiger Global Times Group Top 5 Amusement Parks in India Tree House Education Tribhovandas Bhimji Zaveri Triumph Motorcycles TTK Healthcare TTK Prestige Twin Courtyard house in Chandigarh Twitter Tycoons Type Of Technical Analysis Charts Tzinga UB’s Mangalore Chemicals & Fertilizer (MCF) Udit Mittal Ujaas Energy Limited UK based consultants W S Atkins Ukraine UltraTech Cement Ltd Unison International United Breweries Unlisted Firms unmanned aerial vehicles (UAV) US US NBA team Sacramento Kings V Balakrishnan V G Siddhartha Vaatsalya Hospitals Value Capture Financing (VCF) Value Investing Vani Hari Varun Thapar VEDANTA Vedic Broadcasting Ltd Velumani Venture capital firm Viceroy Hotels Video Recruit India Videocon Vijay Kedia Vijay Mallya Vikas Oberoi Vikram Bakshi Vikram Oberoi Vikram Thapar Villa Nirmala Vineet Nayar Vini Consumer Products Pvt Ltd Vishesh Jayawanth VLADIMIR PUTIN VSAT Wadhwa Group Wagles Walden International Walmart Warren Buffet Waterfield Advisors Welspun Corp. Who Moved My Interest Rate? Wimbledon ( 24 June- 4 July 2013) Windward Wipro Wockhardt Women Safety Wonobo.com World of Coca-Cola museum in Atlanta WORLDS WEALTHIEST PEOPLE www.HelpingDoc.com www.lijjat.com www.masterandstudent.com www.nse2rich.com Yahoo Yash Raj Films YES Bank yowoto.com Zahabiya Khorakiwala Zee Learn Zomato
  

Nifty-50 Heatmap

Rakesh Jhunjhunwala Stocks

Gainers

Loosers

Price Shockers

BSE 52 Week High and Low

Volume Shockers

Insurance Companies - Likes

Promoter Holdings Check

Foreign Promoter Cos

FII Hot Favorites

IPO Tracker

BSE Result Calender

Stock Market Watch