A few months ago there was a great wave of excitement among government share investors but now their happiness has disappeared somewhere. This is because most of the government stocks included in their portfolio have fallen by 40 percent from their 52-week high and their earnings have also fallen. In fact, the selling in the stock market is not showing any sign of stopping, especially the selling in government shares is even heavier.
These PSU stocks have provided huge profits to their investors in the last 2 years. Many even gave multibagger returns. But now it seems that his bad days have started. In such a situation, the question arises whether after Diwali, good luck will return for the investors or good days will come for these government shares, now it has to be seen when these shares will rise again.
There was a huge decline in these government shares
12 stocks like Cochin Shipyard, HUDCO and Bharat Dynamics have fallen at least 40% from their 52-week highs after delivering multibagger returns in the last one year. A study of all BSE-listed stocks with a market capitalization of at least Rs 1,000 crore reveals a list of 115 stocks that have fallen at least 40% from the top. Among them, there are at least 12 recent multibaggers who are now going through tough times.
This stock fell by 54 percent from 52 week high
Defense PSU stock Cochin Shipyard, whose shares have fallen 54% from the peak, is still up 176% in the last one year. Waari Renewable Technologies, which was recently in focus due to the listing of its group company Waari Energies on the stock exchanges on Monday, has lost about 53% of its value. Solar Play has been a four-bagger in the last 12 months.
The list also includes stocks of PSUs like HUDCO, Bharat Dynamics and IFCI and private companies like Unitech, Cupid, Lotus Chocolate and Dolphin Offshore Enterprises.
when will good days come
Retail investors who were buying these shares on the fall are now healing their wounds as there is little chance of improvement in the future. Siddharth Khemka, research head, wealth management, Motilal Oswal Financial Services, told The Economic Times that while it is difficult to predict the bottom line, he believes the sector will continue to strengthen for some time as valuations are ahead of fundamentals. At the same time, sentiments may improve as discussion about the budget increases in January next year.
He suggests that investors should revisit their portfolio and see that at least 50% is in largecaps and then about 30% in mid and small, and about 20% in bonds or fixed income.
