Midcap opportunity: This stock fell 50% in 2 months, hit 52-week low today; buy to double your money in a year

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Updated: May 21, 2018 2:02:06 PM

This mid-cap stock has fallen more than 50% in the last two months and hit the 52-week low today. According to a domestic brokerage firm, the stock is ready to give nearly 140% return in next 6 quarters.

Photo for representational purposes only. (Image: Reuters)

The domestic stock markets have witnessed a drop to a broad two-month rise as BJP’s BS Yeddyurappa made a sudden exit from the post of Chief Minister of Karnataka ahead of the floor test leaving INC and JD(S) to form the government in the state. Over the course of last two months — the beginning of the financial year 2018-2019 — stocks have seen uptick and downtick majorly on the back of Q4 earnings. This mid-cap stock has fallen more than 50% in the last two months and hit the 52-week low today. According to a domestic brokerage firm, the stock is ready to give nearly 140% return in next 6 quarters.

Shares of Strides Shasun have shed 50.16% to Rs 333.5 (52-week low) in last two months from a share price of Rs 669.15 as on 28 March 2018. The research and brokerage firm HDFC Securities has given a target price of Rs 920 per equity share which implies an upside of 138% from the current market price of Rs 387.05. Also, HDFC Securities has placed the stock in the quadrant which suggests the stock of Strides Shasun is a high risk and high return scrip. Today, Strides Shasun share price slipped 13.84% to a 52-week low of Rs 333.5 on NSE.

Earlier on Friday last week, Strides Shasun posted a consolidated net loss of Rs 4.4 crore from the continuing operations as against a net profit of Rs 91.59 crore in the comparable quarter last year. The financial year 2017-18 was a difficult year for Strides. While we continue to build momentum with our strategy, our execution was far from satisfactory,” said Arun Kumar, CEO and MD, Strides Shasun Group. Also, while announcing the Q4 results, the board of Strides Shasun recommended a dividend of Rs 2 per equity share.

Shares of Strides Shasun are categorised in the ‘A’ group on BSE while the company commands a market capitalisation of Rs 3,465 crore on BSE.

Disclaimer: Views and recommendations given in this section are the brokerage firms’ own and do not represent those of www.financialexpress.com. Please consult your financial adviser before taking any position in the stock/s mentioned.

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