The dark side of the moon: 5 Nifty midcap stocks that have bled investor wealth
Stocks such as Union Bank of India, Indian Bank, REC, all of them PSUs, have delivered more than 100 percent returns in one-year period but there are some that have left investors poorer
As headline indices struggle, the Nifty midcap 100 has touched stratospheric heights zooming 26 percent over the past year and 23 percent, so far, in 2023, hitting new highs. From its recent lows in March, it is up about 31 percent. But not all stocks have supported the index, once again highlighting the need for smart stock-picking in the broader market space.
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While stocks such as Union Bank of India, Indian Bank and REC, all three are PSUs, have delivered more than 100 percent returns in one year, there are some that have left investors poorer, failing to bounce back even amid bullish momentum. Here are some of them:
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Crompton Greaves Consumer Electricals: The household electrical maker has been struggling to grow revenue for the last few years, with five-year sales CAGR at 11 percent and profit at 7 percent. The weak performance has kept investors away in the current leg of the rally and the stock has lost 24 percent over the last year and 42 percent from its all-time highs of September 2021.
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Aditya Birla Fashion and Retail: The apparel retailer is next on the list following the losses it has incurred and the growing competition in the space. The losses came in despite double-digit sales growth in the last five years, raising questions about the efficiency of the business. The stock is down 21 percent over the last year even as it has seen some buying lately.
Gujarat Fluorochemicals: The chemical space, a favourite of investors a couple of years back, has taken a knock. The high cost of raw material and tumbling chemical prices have dealt a blow to players like Gujarat Fluorochemicals. The stock has fallen 16 percent over the past year and is down about 31 percent from the all-time high level of October 2022.
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Voltas: Another stock from the consumer discretionary space that has disappointed investors with low sales growth. This Tata Group stock is down 16 percent and has been holding on to levels last seen in March.
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Tata Chemicals: What rises will eventually fall seems to be true of several Tata group stocks, which were all the rage until last year. The stock has lost 8 percent over the year despite some buying seen in the past few months.
Shubham Raj has six years of experience covering capital markets. He primarily writes on stocks with special focus on F&O and PMS-AIF industry.
