Top undervalued picks: 5 value stocks to anchor your portfolio in this volatile market
Subscribe to enjoy similar stories. The Indian stock market has faced significant turbulence recently, with the Sensex and Nifty showing sharp declines and heightened volatility. Broader indices, not far from their 52-week lows, also reflect growing investor anxiety amid a series of negative developments.
After disappointing earnings in Q1 and Q2, market experts believe only a tepid recovery will be visible in Q3, with a rebound likely pushed to Q4. This suggests that market pressure could persist longer than anticipated. However, these headwinds also present opportunities.
Some fundamentally strong stocks have taken a hit, not due to company-specific issues but broader market dynamics. For investors with a long-term view, this could be a chance to pick up quality stocks at attractive prices. With this in mind, let’s take a look at five stocks that have corrected sharply but could offer deep value for patient investors.
ACC, India’s third-largest cement company, has a national presence with a capacity of 36 million tonnes (mt). Ambuja holds a 51% stake in ACC and together, they control 70 million mt, the second-largest capacity in India after UltraTech. These two companies account for 11% of the country’s cement industry capacities.
At a price to earnings (PE) ratio of 15.5, ACC’s stock trades at a discount compared to the industry average of 35.5 and its 5-year median PE of 23. Despite strong volume growth, ACC’s current valuation is under pressure due to weak cement prices and low profitability. While the company has made strides in boosting trade sales and increasing premium cement volumes, its realization per ton has dropped and profitability remains a concern.
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