3 Nifty Stocks That Have Fallen Up to 46% From Highs, Should You Buy?

Nifty stocks generally would not fall as much as 46%, but, there are some heavy weight IT stocks that have just fallen very sharply. Let's take a look at some of these stocks that have fallen sharply from 52-week highs.

Is Wipro stock a buy?

Topping the list is Wipro and largely on account of subdued quarterly performance of the past and lacklustre likely performance going forward. The stock of the company has fallen from levels of Rs 721 to Rs 385, signifying a drop of a solid 46%. However, some brokerages remain optimistic on the stock of Wipro post the decline in the stock price. HEM Securities has a price target of Rs 467 on the stock, which is significantly higher than the current market price of Wipro. According to the report of HEM, the management has guided 0.5-2% revenue growth for Q3FY23 considering macroeconomic uncertainties and seasonality. "The management expects to gain market share in the coming quarters. Management also mentioned that they may face some margin headwinds in Q3FY23 also," the brokerage said. It would be interesting to see what happens in Q3 and that could set the trend for the stock price of Wipro.

Tech Mahindra: What brokerages say on the Tech Mahindra stock?

Again, like Wipro, Tech Mahindra has joined some IT stocks lower. The shares have fallen from levels of Rs 175 to Rs 998, signifying a drop of 43% from highs. Jefferies has a "Hold" ratings on Tech Mahindra, while JP Morgan has a neutral rating. BNP Paribas has a "buy" ratings on Tech Mahindra with a price target of Rs 1140, which is a significant upside from current levels. The one good thing for some of these IT stocks is that dividend yields are also good. In the case of Tech Mahindra stock it is more than 3.5%. Interestingly, TECH Mahindra is very close to its 52-week low of Rs 944. Investors may want to wait for the numbers of the IT major before deciding on what next to do.

Tata Motors

This stock has not fallen as sharply as the other two mentioned above, but, has fallen almost 27% from levels of Rs 528 to Rs 385. Jefferies has a buy rating on the stock of Tata Motors with a target price of Rs 540, which is even higher than its 52-week high. This leaves good potential for an upside, even as the fall in the stock lately has reduced the risk even of further losses. According to Prabhudas Lilladher, Tata Motors may report narrowing of losses in the coming quarter.

 

Disclaimer

The buy recommendations and suggestions are from some brokerage houses. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.