5 Small-cap Stocks Nearing 52-Week Lows: Are They a Buy in a Strong Market?
trading at their 52-week lows. Investing in a falling stock is akin to catching a falling knife that has burned many, with investment values plummeting further. Therefore, buying the dip demands careful consideration.
However, if executed wisely, it presents a wonderful opportunity to obtain quality stocks at discounted prices, especially in the small-cap space. Investing in small-cap stocks can be a lot like searching for hidden gems in the market. These companies, often overlooked by mainstream investors, can hold significant growth potential.
Here are 5 smallcap stocks trading close to their 52-week lows. Are they worth your attention? Let's find out… At the top of our list, we have Polyplex. Polyplex manufactures polyester films for packaging, electrical and other industrial applications.
The company is an industry leader with a market share of about 25% in Thailand and Turkey, and around 10% in India, the US, and Indonesia. The stock is trading at ₹1,225, close to its 52-week low of ₹1,110. It has been volatile throughout the year, swinging like a pendulum.
The first reason is the challenges the company has been facing despite a positive trend over the past few years. The combination of higher input costs, which are closely linked to crude oil prices, and a noticeable slowdown in demand due to weak market sentiment has significantly impacted profitability. In its latest quarterly results, march ending 2023, Polyplex reported a 76% decline in net profit.
Despite these trying times, the management remains optimistic about achieving higher profitability in the future. They anticipate softening of raw material prices throughout the year. While investors didn’t mind the cyclical dip in profits, the news of the promoter
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