1. Medplus Health Services: This healthcare supplies company, which listed on the exchanges in December 2021, hit a lifetime low of Rs 708 in share price in the last week. The stock lost close to 16% in the previous eight trading sessions and is currently trading below its IPO issue price of Rs 796. A combination of the competitive landscape in the pharmacy segment and weak Q4FY22 results led to the price fall.

However, brokerages still have a positive outlook on the company. As a result, it shows up in this screener which lists stocks with high analyst ratings and have an upside of at least 20% from their current price.

The pharmacy segment (both offline and e-commerce) is under intense competition from companies from different industries. While peers like PharmEasy are expanding aggressively in this segment, hospital companies like Apollo Hospital Enterprises and Aster DM Healthcare are also after market share in the pharmacy space. Apollo Hospital Enterprises’ arm, Apollo Healthco boasts of a larger network compared to Medplus, With a total store count of 4,529 against Medplus’ 2,748 as of March 2022. However, Medplus is expanding its network at a faster clip, adding 667 stores in FY22 (on a net basis). Apollo Healthco added 411 net new stores in FY22. Both companies’ margins fell in Q4FY22 as a result of increased discounts to gain market share from the unorganized sector. Medplus’ EBITDA margin fell 120 bps YoY to 6.8% in Q4FY22. With 27% of the total stores being less than 12 months old, improvement in margins from these new additions could help ease the margin pressure for Medplus.

2. JSW Steel: This steel maker’s output in May rose 22% YoY to 16.67 lakh tonnes. However, with the mayhem in markets over the past few trading sessions, the stock rose only marginally by 0.2%, despite strong volume growth. In fact, this stock is down over 30% from its lifetime high seen in April and is currently trading less than 5% away from its 52-week low. But, mutual funds are optimistic, increasing their holdings in JSW Steel in the past month.

The steep fall in the company’s share price over the past many trading sessions is not entirely due to the choppy market. There is also the weak outlook and muted Q4FY22 results. On May 23, the Centre imposed export duties on iron ore and some steel intermediaries to curb rising prices in the domestic market. Exports contributed to 28% of total volumes in FY22. This export duty imposition comes at a time when the company’s margins are already under pressure. Operating profit margin fell 11.8 percentage points YoY in Q4FY22 to 19.6% on the back of high input costs. Going forward, a fall in coking coal prices can help the company sustain its margins. Trendlyne’s Forecaster estimates a 10% revenue growth in FY23. This is a muted forecast, considering that JSW’s revenue grew 87% YoY to Rs 1,47,902 crore in FY22.

Brokerages downgraded this company’s stock on the back of falling margins in Q4FY22 and new export duty imposition by the Centre. While Motilal Oswal downgraded its rating from ‘Buy’ to ‘Neutral’, Prabhudas Lilladher has a ‘Reduce’ rating. 

3. G R Infraprojects: This roads & highway builder’s stock was doing well on Monday morning when it was trading almost 28X its weekly average trading volumes. However, the stock plunged 18% in the next three consecutive sessions, after news broke of raids conducted by the Central Bureau of Investigation (CBI) at various company locations. It was alleged that there were anomalies found in an Assam highway project.

On June 14, 2022, its wholly owned-subsidiary GR Bandikui Jaipur Expressway executed the concession agreement with the National Highways Authority of India worth Rs 1,368 crore. The stock touched a 52-week low on the same day. The stock fell further on Wednesday when the company’s exchange filing revealed that the CBI filed an FIR against the company and some of its officials under the Prevention of Corruption Act. Despite these developments, the stock closed 2% above on Thursday, even though the Nifty fell below the 15,400 mark on Thursday.

4. Tata Communications: This telecommunication service provider’s stock fell 7% in intra-day trade to touch a 52-week low of Rs 856 on Wednesday. The stock fell after its investor day 2022 event held on Tuesday, as the company’s management did not give guidance or any outlook on its revenue growth for FY23. This did not enthuse investors and brokerages. The company’s revenue conversion cycle has slowed down due to deal closure delays caused by the shortage of chips and component supplies.

The company stock also made it to this screener which shows broker downgrades in price or recommendations in the past month. Its target price was downgraded by ICICI Securities after its Investor Day 2022 event. The brokerage still has a ‘Buy’ rating on the stock.

5. Varun Beverages: This soft drink bottler’s stock rose over 5% in intra-day trade and touched an all-time high of Rs 805.6 on Wednesday. The stock surged by around 25% over the past three months, in an otherwise weak market. It shows up on a screener with companies whose shares rose by more than 10% in over three months, with rising net profit growth. The stock has been rising on expectations of robust profitability in Q1FY23.

Hem Securities expects the company to benefit from the strong recovery in consumer demand led by the opening up of offices and colleges, increasing travel demand, rising out-of-home consumption, and traction in new products. 

The company has been trading at higher levels since it posted its Q4FY22 results, with its profit rising 96.6% YoY to Rs 254.2 crore and revenue by 26.2% YoY to Rs 2,827.5 crore helped by a scorching summer. The management believes it can deliver healthy profit growth in the coming quarters as the economy recovers. In FY23, the management expects high raw material and commodity prices to increase margin pressure. To counter this, Varun Beverages undertook advanced stocking for the summer season. The management expects to achieve 1.5X sales volume in Q1FY23 compared to Q4FY22.

Trendlyne's analysts identify stocks that are seeing interesting price movement, analyst calls, or new developments. These are not buy recommendations.