The Stocks That Surprised And Disappointed Analysts The Most
Here are the stocks that have surprised and disappointed analysts this year.
India’s equity market remained volatile this year as both the Sensex and Nifty wiped out its entire gains of 2018 to trade lower. And some of the stocks did exactly the opposite of what analysts had expected.
As many as 322 of the 403 stocks—with a market capitalisation of more than Rs 1,000 crore and tracked by at least five analysts—have declined so far this year, according to Bloomberg data.
Of these, analysts were most bullish on 33, assigning 100 percent ‘Buy’ rating. The ones that disappointed the most include the likes of PC Jeweller Ltd. and Vakrangee Ltd.
Here’s how the stocks have fared so far in 2018:
What Went Wrong
- PC Jeweller and Vakrangee: Issues related to corporate governance, allegation of share price manipulation and auditor resigning.
- Allcargo Logistics: Subdued freight rates put pressure on traditional container and freight services business.
- Capacite Infra: Longer working capital days and rising debt.
- Prabhat Dairy: Falling global milk prices due to excess supply and higher cost of production.
From the 81 stocks that returned gains year-to-date, some were the least recommended at the start of the year. Among them, Avenue Supermarts Ltd. and Page Industries Ltd. surprised the most.
What’s Working
- Avenue Supermarts: A pick-up in rural demand and aggressive expansion strategy.
- United Breweries: Robust volume growth and market share gains in key markets of Telangana, Andhra Pradesh and Rajasthan.
- Wipro: A continued traction in the banking, financial services and insurance, and digital segments, large deal wins and a weaker rupee.
- Page Industries: An increase in distribution and strong brand recognition drive volume growth, better product mix and price hikes to help sustain margins.