35 Stocks at their 52-Week Highs and then a Steep Slump

Thirty-five (35) stocks, which hit their 52-week highs in the

months of August and September, have since slumped up to
26 per cent.These stocks have tanked a minimum of 10 per
cent from their 1-year highs as compared to a 2 per cent drop
that the BSE Sensex has seen from its 1-year high of
29,077.Overall, 228 stocks have hit 52-week highs since
August. Out of which about 130 of them are currently down
more than 5 per cent.
Following is a bar graph of the stocks which have dipped over
15 per cent after touching their 52-week high:

Stcoks which have dipped over 15% from

their 52-week high
30
25
20
15
10
5
0

Stcoks which have dipped over

15% from their 52-week high

A market analyst explained that it was clear that from a short-term outlook, the risk-reward
for the market was definitely not attractive, given the valuations. Among the
stocks, Gati has slumped 26 per cent from its 52-week high of Rs.189.45 hit on 2nd
August. Balrampur Chini has lost one-fifth of its market value ever since it had touched its
52-week high of Rs.138.
Bata India (down 17 per cent), APL Apollo (slumped 16 per cent), Yes Bank (dipped 15
per cent) and eClerx Services (dipped 15 per cent) are some of the stocks that are trading at
a minimum of 15 per cent below their 52-week high levels hit since 1st August. At
Fridays close of Rs.212, Trent (Tata group firm) is down 17 per cent from its 52-week
high of Rs.256 hit on 1st August. Diversified company Aditya Birla Nuvo has dipped 16
per cent from its one-year high of Rs.1,664. The company deals in textiles and apparel.

Another analyst stated that given the liquidity, given where the yields were, one was
seeing valuations on the higher side. There was no point in looking at the index valuations
seriously, he added. One would rather look at the companies that one would like to invest
in, he said, which one thinks were exposed to the positive changes in the Indian economy.
Then identify the better-off ones based on their quality and also look at where the
valuations
were,
the
analyst
added.
The market analyst further continued that he would tend to believe that even there,
valuations were slightly stretched. As a long-term investor, one was investing with a time
horizon beyond 3 to 5 years, then the valuation at which one enters a stock doesnt matter
much as long as earnings had a sustainable growth over the long term, he concluded.
Therefore, one has to be extra careful while investing in the above stocks which have
slumped in an unexpected manner reliving the truth that stock markets are a roller-coaster
ride.

Disclaimer
The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the
research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making
investment decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

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Analyst/ his Relative:

Do not have any financial interest / any actual/beneficial ownership in the subject company.
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Article Written by
Salman Hashmi