6 Good Quality Stocks Trading 40% To 60% Below 52-week Highs, Should You Buy?

Here are 6 stocks that have dived way below their 52-week highs. Most of these are good quality stocks that have delivered good returns in the past few years. Take a look.

Lux Industries

The stock of Lux Industries hit a 52-week high of Rs 3995 and now trades at Rs 1640, down 58%. Lux Industries is a top inner wear brand in the country. The stock has fallen over the last few trading sessions largely on account quarterly results that did not match expectations. Constant increase in raw material prices have also not helped. The stock of Lux Industries has fallen significantly from 52-week highs of Rs 3925 to the current price. In fact, the stock of Lux Industries has also hit a 52-week low of Rs 1536, which means the stock is not too far away from its 52-week low.

Zensar

This RPG group company is down 60% from 52-week highs of Rs 538 to Rs 212. JM Financial recently had a buy call on the stock of Zensar with a price target of Rs 275. That is significantly higher than the current market price of Zensar of Rs 213.10. The promoters have a solid holding in the stock of nearly 49%. Zensar Technologies Ltd. key Products and revenue segments include Software Development Charges & Other Services and Software Products. The stock of the company has hit a 52-week high of Rs 538 and Rs 202, which means the stock is trading closer to its 52-week low price.

Everest Canto

This stock of Everest Canto is down 63% from 52-week highs of Rs 291 to Rs 103. Everest Kanto Cylinders is a major player in High Pressure Seamless Steel Gas Cylinder Industry. The company manufactures a wide range of cylinders for industrial gases medical gases fire fighting equipments beverage industry accumulator shells aerospace scientific research and CNG- NGV cylinders. There were no brokerage report recommending the stock. One of the reasons for the fall in the stock is quarterly numbers. For the quarter ending Sept 30, 2022, the company saw a sharp fall in revenues, which also impacted profitability. The stock of Everest Canto is now also 200 day moving averages of Rs 150.

Thyrocare Technologies

The stock of Thyrocare is down from 52-week highs of Rs 1131 to Rs 618, though the fall is a little below 50%. Thyrocare is India's first fully automated diagnostic laboratory with a focus on providing quality at affordable costs to laboratories and hospitals in India and other countries. The stock of Thyrocare has been moving up recently on worries of a rising number of Covid cases. The stock has risen sharply in the last few trading sessions from levels of Rs 600 to Rs 627.

Mastek

The stock of Mastek is down 54% from 52-week highs of Rs 3410. Recently, brokerage firm Anand Rathi had a buy call on the stock of Mastek. "The company is now stabilizing with drags in healthcare behind, Metasoftech fully integrated from Q3, raising the US contribution to ~27%, and cross-currency turning supportive. While Q3 would be stable, growth is likely to improve from Q4. With annual increments and the worst of attrition behind, EBITDA margins should improve gradually," the brokerage stated in its report. The stock of Mastek has also hit a 52-week low of Rs 1490 on the NSE.

TV Today

This stock of TV Today is down 44% from 52-week highs of Rs 431 to Rs 240. The stock of TV Today had also fallen to a 52-week low of Rs 220 and has made some recovery on the stock. The shares of the company are now available at a reasonable price to earnings ratio of under 10 times. However, we did not find a recent "buy" recommendation on the stock from any brokerage house.