These 10 stocks have lost over 50% in the past 6 months
Take a look at the some of the worst performing stocks of H1 CY18. The first half of CY 2018 saw the Sensex hit a peak of 36,443 and many stocks gave high returns. However, the value of these 10 stocks plunged drastically over the past six months. The market cap of these companies is above Rs 1,000 crore.
After hitting record highs in late January, followed by sharp sell-off, the market has been consolidating and trying very hard to move towards that all-time high.
The Sensex rallied 4 percent in the first half of 2018, but the broader market corrected sharply with the Nifty Midcap index falling 14 percent, especially after the strong 48 percent outperformance in 2017.
Experts said some mid, small and large caps are trading at attractive valuations.
Big reform decisions taken by the government, normal monsoon resulting in a likely increase in consumption and an earnings recovery continue to support the market, but global trade concerns, volatility in crude oil prices, weakening rupee versus the dollar and an increase in the cost of capital are headwinds to the rally.
"In the backdrop of higher fuel prices, increase in interest rates and a weakening rupee-dollar scenario, we are of the view that market may trade in a range and is unlikely to witness any strong appreciation in the next 6-8 months," Rajeev Srivastava, Business Head-Securities & Commodities, Reliance Securities, said.
He advises investors to invest in quality stocks, which are less vulnerable to macro concerns and have healthy cash flow visibility. Considering the likely pick-up in rural consumption, higher utilization,and recent reforms, he is hopeful that corporate earnings will witness double-digit growth in coming quarters.
Under its new five-year strategic plan to FY21, L&T aims to: (a) grow sales at 12-15 percent CAGR to reach Rs 2 lakh crore by 2021, (b) expand margins to 11.2 percent, up 120bp over FY16, driven by higher profitability in key manufacturing verticals (power, process, forgings and Katupalli yard) and hydrocarbons, (c) unlock value via asset sales to drive RoE to 18 percent from 12 percent in FY16 and (d) reduce working capital to 18 percent of sales from 20 percent currently.
Manufacturing businesses (like Shipyard, Power BTG, and Forgings) also offer interesting possibilities over the longer term. Many of these businesses are difficult to replicate, and L&T is strongly positioned as a dominant player.
Tata Steel and ThyssenKrupp AG have signed a definitive agreement to combine their European steel businesses in a 50:50 joint venture to be named ThyssenKrupp Tata Steel BV headquartered at Amsterdam, Netherlands.
The formation of the joint venture paves the way to offload significant debt from Tata Steel's consolidated balance sheet to the new joint venture. The deleveraging of the balance sheet would aid the management to focus more on the profitable domestic business and pursue organic and inorganic growth prospects.
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