Indoco Remedies: This pharmaceutical company’s stock is up by 14% in two weeks and is 2.5% off its 52-week high. The rally has pushed its trailing 12-month (TTM) price-to-earnings (PE) ratio, currently at 39, close to the median PE of 40.2. While the stock remains in the neutral zone, it is inching closer to the PE sell zone.
Coforge: Brokers are not excited by this IT-services company’s recent acquisition. It acquired a majority stake in SLK Global Solutions, a BPO financial services company. Despite the acquisition of a company that grew at a 22% CAGR in FY18-20, ICICI Direct downgraded the stock to ‘Hold’ from ‘Buy’ stating high valuations. The stock is trading with a trailing 12-month price-to-earnings (PE) ratio of 42, against the Nifty IT index’s PE of 28.4.
Tata Power Company: This power company’s stock is being dumped by mutual funds. Between December 2020 to March 2021, mutual funds sold 11.1 crore shares, decreasing their stake in the company by 28%. Since hitting a four-year high in March, the stock has declined by 17%.
Titan Company: For the second consecutive quarter, Rakesh Jhunjhunwala has lowered his stake in this fashion and retail company. He sold 22.5 lakh shares in the company during Q4FY21, bringing his stake to below 4%. This is despite the company reporting a 60% YoY revenue growth in the quarter.
Balrampur Chini Mills: This sugar maker’s stock is up by 16% in less than three days, soaring to a new lifetime high. The jump is on the back of bright prospects for the sugar industry because of the government’s positive stance towards ethanol blending. This week, the company’s board approved an investment of Rs 425 crore for a new distillery plant.