In the realm of the stock market, where exuberance and jubilation filled the air as the Nifty and Sensex soared to new historic highs, the performance of some Nifty 500 stocks has been underwhelming, leaving investors disappointed.
According to Trendlyne data, there were some 25 stocks within the Nifty 500 index that have witnessed a considerable erosion in market value, painting a contrasting picture against the backdrop of the broader market rally. The downward journey of these stocks was diverse, with some witnessing a plunge of 40% while others tumbled as much as 83%.
Topping the list of underperformers are the Adani Group companies, which have seen their stock prices fall between 39% and 83% from their 52-week highs. Adani Total Gas was the worst performer in the group, falling 83% from its 52-week high of ₹4,000 apiece to trade at the current price of ₹654.60.
Similarly, other stocks in the group, such as Adani Transmission, Adani Green Energy, Adani Wilmar, Adani Enterprises, and Adani Ports & Special Economic Zone, fell in the range of 40–80% from their respective one-year highs.
The Adani group's stocks have been in freefall since the Hindenburg bombshell on the conglomerate on January 24, alleging stock price manipulation, excessive amounts of debt, and accounting fraud.
However, Adani Group has denied all allegations by Hindenburg and is plotting a comeback strategy that includes recasting its ambitions, scrapping acquisitions, pre-paying debt to address concerns about its cash flows and borrowings and scaling back its pace of spending on new projects.
According to the PTI report, on June 28, US-based boutique investment firm GQG Partners has raised their stake in two Adani group stocks, including the group's flagship Adani Enterprises and renewable energy firm Adani Green Energy.
During March, GQG Partners invested ₹15,446 crore by purchasing a stake in four Adani Group firms. This marked the first major investment in billionaire Gautam Adani's conglomerate since the Hindenburg report.
|Scrip Name||% fall from 52-week highs|
|Adani Total Gas||83.48|
|Adani Green Energy||63.17|
|Tata Teleservices (Maharashtra) Ltd||51.98|
|Deepak Fertilisers & Petrochemicals||46.66|
|Easy Trip Planners||43.27|
|TCNS Clothing Co. Ltd||43|
|Aditya Birla Fashion||40.38|
|FSN E-Commerce Ventures||39.94|
Furthermore, Gland Pharma was another company that saw its shares underperform over the last two years. From its 52-week high of ₹2,710 apiece, the stock is down by nearly 61% to date, and it has tumbled 75% from its all-time high of ₹4,350 apiece.
Similarly, Piramal Enterprises and Piramal Pharma both skidded around 54% each from their one-year highs of ₹2,084 and ₹200, respectively. Tata Teleservices (Maharashtra) shares are trading at a 52% discount to their 52-week high.
Likewise, Campus Activewear, a prominent sports and athleisure footwear company in India, has been witnessing a downward spiral in its share price for the last seven months. The company, known for its trendy and stylish athletic footwear, has been grappling with challenges including weak demand and poor financial performance, which have exerted downward pressure on its shares, which are reaching new lows.
The company's shares have plummeted by 51% from their 52-week high of ₹639.3 per share. In March 2023 alone, the shares corrected by almost 18%, and in May, they further lost 15% of their value.
Furthermore, several other stocks such as Tata Teleservices (Maharashtra) Ltd, Uflex, Polyplex Corporation, Sunteck Realty, Deepak Fertilisers & Petrochemicals Corporation, Rajesh Exports, Delhivery, Brightcom Group, Aarti Industries, Easy Trip Planners, TCNS Clothing, Aditya Birla Fashion, FSN E-Commerce Ventures, Balaji Amines, and Laurus Labs need to rally between 20 and 80% to revisit their 52-week highs.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.