At Monday’s low of Rs 2,618.70, shares of Hero MotoCorp were down 28 per cent from their 52-week high of Rs 3,629.05. The median of price targets of 12 months by 45 analysts was Rs 3,157.85, suggesting about 20 per cent upside potential for the stock.
For Coal India, the media target at Rs 193.50 suggested a 28 per cent potential upside. At the day’s low of Rs 149.10, this stock was off 27 per cent its 52-week high of Rs 203.80. The 50-pack NSE benchmark has fallen 6.4 per cent from its peak.
Tata Steel is down 24 per cent from its one-year high, while Adani Ports and Hindalco Industries have fallen 22 per cent each from their 52-week highs. Median target for Tata Steel suggested a 48 per cent potential upside; for Adani Ports, the median target suggested a 22 per cent upside. The consensus was a 29 per cent upside potential for Hindalco.
BPCL, Axis Bank, Bajaj Auto,
and HCL Tech are five other stocks that have fallen 20-22 per cent from their 52-week highs. The median analyst target for suggested a 36 per cent upside. Axis Bank has a 37 per cent upside, Bajaj Auto’s 23 per cent and IndusInd’s 33 per cent
Among these stocks, Tata Steel, Axis Bank and Bajaj Auto were some of the Nifty50 companies that saw up to 7 per cent consensus downgrades after September quarter earnings. Hindalco, on the other hand, witnessed a 5 per cent rise in consensus estimates.
Meanwhile, analysts said there were many desired stocks that have still not fallen to the levels to become good buys as the market fall has not been across the board.
Deepak Shenoy, founder, Capital Mind, said: “We are not yet there and we are not saying that if I do not buy today, I do not think I will ever get this price again. Obviously, there are some stocks, which are doing better than others, which are expected to fall but have not fallen quite as much. Today, I am probably buying only 50 per cent of them because the remaining 50 per cent are not yet down to the levels. I do not think the fall is deep across the board. If you look at the last 10 years, every year has seen a 10-15 per cent correction. This year has not and, hopefully, this is that time and I have to invest for the next 10 years. I do not care if it falls 10 per cent right now, to be honest.”
Pankaj Murarka of Renaissance Investment Managers said his fund was actually sitting on some cash it had created over the last few months.
“We would like to invest in the market probably in a few days or weeks, once this correction settles down. We remain quite optimistic on the outlook for the Indian economy going into the next year. Probably next year should be the first normalised year in the post-Covid world for the Indian economy, and we remain very positive on investment-led sectors, as we are very positive on India’s investment cycle and the revival of capex. We are already seeing some very large industrial companies announcing very meaningful investment plans,” he added.
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