YES Bank, Paytm, Nykaa, PNB, SAIL among 24 stocks down up to 96% from all-time highs; should you buy?

A host of popular stocks, which became retail favorites over the years, are currently trading up to 96 per cent below their all-time record highs. However, investors should not see all stock as 'bargain buy' opportunity as some of these companies have governance issues.

According to the data from Ace Equity, as many two dozen stocks or 24 counters are trading 50 to 96 per cent below their record high levels. The list includes names like YES Bank, Adani Total Gas, Bank Of India, Vodafone Idea, Adani Energy Solutions, Indian Overseas Bank, Union Bank Of India, Punjab National Bank, NMDC, Steel Authority of India (SAIL) and Adani Green Energy.

The list is topped by Yes Bank which is trading 96 per cent below its all-time high of more than Rs 400 it hit in August 2018. However, the corporate governance issues by its promoter Rana Kapoor weighed on the stock, which turned into a penny stock around Rs 3-level. However, the stock is hovering around Rs 17 on Wednesday.

The list also includes Adani Group stock including Adani Total (down 85 per cent), Adani Energy Solutions (down 82 per cent), Adani Green Energy (down 70 per cent) and Adani Wilmar (62 per cent down) from their all-time highs. The allegations from the US-based short seller Hindenburg Research weighed on sentiments as investors pushed the panic button and dumped them.

Among other wealth destroyers, state-run lenders like Bank Of India, Indian Overseas Bank, Union Bank Of India, Punjab National Bank, IDBI Bank and Canara Bank are down 55-80 per cent from their all-time highs. Other state run metal counters, NMDC and Steel Authority Of India have fallen about 70 per cent from the record highs.

Avinash Gorakshakar, Head of Research at ProfitMart Securities, in an interview with Business Today TV, said that the correction in PSU lenders is more severe as investors hammered these counters anticipating slow credit growth, concerns over asset quality and muted NIMs. Gorakshakar likes Canara Bank and PNB from the PSU Bank sector.

New age internet companies including FSN E-Commerce Ventures (Nykaa), One97 Communications (Paytm) and PB Fintech (PolicyBazaar) have tumbled 66 per cent, 52 per cent and 50 per cent, respectively from their record highs. The carnage in these stocks began in November 2021 and most of them have failed to make a full recovery since then.

He is also positive on SAIL and NMDC in the next 12 months. The market expert picked Paytm and PolicyBazaar in the long run, considering the improving business fundamentals.

Talking to BT TV, Hemang Jani, an independent market expert, prefers Paytm from the new-age basket and sees an upside of 20-25 per cent from the current levels. He has picked NMDC from the metal and mining space, citing its reasonable valuations.

From the PSU banking space, Jani has picked Punjab National Bank, Union Bank of India and Canara Bank as his top picks, which may rise up to 20-22 per cent, considering the recent business performance and discounted valuations.

The list of other wealth eroders include General Insurance Corporation of India, Zee Entertainment Enterprises, Bandhan Bank, Gland Pharma, Vedanta, DLF and Indus Towers. The stocks had issues related to promoters, valuations and business outlook.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

Also read: Hot stocks on October 18, 2023: Suzlon Energy, Zomato, Tejas Networks, Mazagon Dock and more

Also read: Jaiprakash Associates shares rallied 15% today. Here's why