Retail favourite stocks such as Trident Ltd, IDFC First Bank Ltd, YES Bank Ltd, RattanIndia Power Ltd, Jaiprakash Power Ventures Ltd and JIO Financial Services Ltd have tumbled 17-27 per cent from their 52-week highs, even as the BSE Sensex hit record high levels earlier this month, data compiled from corporate database AceEquity suggests.
Indian Railway Finance Corporation Ltd (IRFC), Vodafone Idea Ltd (VIL), Indian Railway Catering and Tourism Corporation Ltd (IRCTC) and Punjab National Bank (PNB) declined 15-16 per cent each. Tata Steel Ltd, Wipro Ltd, NHPC Ltd and Bharat Electronics Ltd (BEL) among others saw corrections of over 10 per cent on concerns over valuations amid quarterly results.
'The Indian market is showing signs of fatigue at higher levels, as most positive factors have already been priced in. Subdued Q1FY25 earnings and stretched valuations are not reassuring investors," said Vinod Nair, Head of Research at Geojit Financial Services.
Among the top 30 stocks from BSE500, BSE midcap and BSE smallcap indices in terms of number of retail investors, Trident at Rs 38.30 apiece is off 27.53 per cent from its 52-week high of Rs 52.85 hit on January 9 this year.
Trident's Q1 Ebitda came in lower than JM Financial's expectations, primarily on account of subdued pricing environment. "Revenue from home–textile witnessed growth by 8 per cent QoQ while revenue from paper segment declined by 11 per cent. Textile segment EBIT margins came in at 7.4 per cent against 5.4 per cent in Q4 while margins for the paper segment increased to 32 per cent against 23 per cent in Q4," it said while suggesting a target of Rs 37 on the stock.
IDFC First Bank Ltd has fallen 26.21 per cent from its September 2023 high of Rs 100.74. Callin it among its least preferred picks, YES Securities said IDFC First Bank's asset quality continues to worsen as slippages jumped sequentially mainly due to the MFI book causing the bank management to raise credit cost guidance, yet again. This brokerage has maintained a less-than-bullish ‘ADD’ rating on IDFCB with a revised price target of Rs 85.
YES Bank shares at Rs 25.45 apiece are down 22.43 per cent from February 9 high of Rs 32.81. In a July 22 note, ICICI Securities the private lender's current valuation at 1.5 times FY26E ABV seems to adequately capture the turnaround. It maintained a 'Sell' on the stock with an unchanged target price of Rs 20.
RattanIndia Power Ltd, JP Power and Jio Financial Services Ltd fell 16-17 per cent. Railways stocks IRFC and IRCTC and telecom operator Vodafone Idea Ltd declined 15-16 per cent.
Tata Steel declined 16 per cent from its 52-week high levels. "While there are near term challenges related to high imports and lower realisations, the long term outlook remains strong. We have largely retained our estimates for FY25 and FY26. Tata Steel is trading at 7 times FY26E EV/Ebitda and 2 times FY26E P/B. Reiterate Neutral with an SOTP-based target price of Rs 180," MOFSL said.
PNB, Wipro, NHPC Ltd, BEL and BHEL tanked up to 16 per cent. In the case of BHEL, analysts said the pace of execution is yet to pick up at the PSU, even as the pace of thermal ordering remains strong. On BEL, Nuvama said: "We remain optimistic on India’s defence growth story; however, given a notable re-rating across the value chain, we do not see much upside potential despite building in the guided growth rate."