5 Stocks That Dropped Between 19% To 22% In The Last 7-Days

Markets have been exceedingly volatile this week. On Monday the Nifty dropped as much as 3%, and recovered as much as 3% on Tuesday. On Wed, Thursday and Friday the markets were also volatile but ended the day flat.

Stocks that dropped sharply in last 7-days

Name	7-day drop
Polo Queen Industrial	22%
Syncom Formulations	21.70%
Manappuram Finance	20.50%
NRB Bearings	19.50%
Arshiya	19.50%

Don't buy stocks that are falling like Manappuram Finance

Investors must learn that stocks where the financial performance is not been as per expectations, the share price could react sharply. Take the case of Manappuram Finance. The company reported a 44% fall in the quarterly net profits. Growth concerns are likely to weigh on the stock for sometime. For these kind of stocks where performance is poor and the stock is quoting at hefty valuations, the stock is going to collapse on a slight fall in the markets.

We believe that the good time for gold loan companies maybe over, given that the covid era is fast vanishing. In fact, during the covid era there was good demand for gold loans as folks were losing their jobs.

Avoid the stock of NRB Bearings as well on quarterly numbers

NRB Bearings is a similar case where the net profits have dropped. The company saw net sales at Rs 230.71, while the quarterly Net Profit at the company was placed at Rs. 16.45 crore in December 2021 down 26.99% from Rs. 22.53 crore in December 2020.

Now, if you seen the EPS of Dec at Rs 1.70 and annualize the same, you would realise that the stock becomes expensive at a price of Rs 137. Input costs pressures would remain for companies like NRB Bearings.

Some of the other companies we would not like to analyze, given that they are lesser known companies.

Markets to see heightened volatility

We would recommend not to buy stocks that are falling, given that a further fall in the markets could see accelerated selling in some of these shares. In any case geo-political tensions and rising bond yields would keep markets in a precarious position next week.

Look for some of the large cap stocks that have the potential to rally and avoid the risks associated with small cap and midcap stocks. Lesser known stocks are best avoided.

Disclaimer

Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article. The author and has family do not own any stocks mentioned above.