While headline indices grapple with challenges, the Nifty Midcap 100 has surged, boasting a remarkable 26% gain over the past year and 23% in 2023. The index has scaled new heights, witnessing a robust 31% upturn from its recent March low. Nevertheless, not all constituent stocks have mirrored this growth, underscoring the significance of adept stock selection.
Among the success stories, Union Bank of India, Indian Bank, and REC stand out with over 100% returns within a year. In contrast, certain stocks have struggled, failing to rebound even amidst market rallies. The following list highlights such underperformers.
Crompton Greaves Consumer Electricals
The manufacturer of household electrical appliances has faced earnings growth challenges in recent years, with a 5-year sales CAGR of 11% and profit of 7%. A 24% decline in the past year and a 42% drop from its September 2021 peak have deterred investors.
Aditya Birla Fashion and Retail
The stock has fallen 21% in the past year, battling increased competition in the apparel retail sector. Despite double-digit sales growth over five years, the company’s losses raise concerns about operational efficiency.
Once favored by investors, the chemical sector, including stocks like Gujarat Fluorochemicals, has suffered due to high raw material costs and declining chemical prices. The stock has slid 16% in the last year and stands 31% below its October 2022 peak.
Another disappointment lies in Voltas, a Tata Group consumer discretionary stock, trading down 16%.
Following a popular trend among Tata Group stocks, Tata Chemicals has dropped 8% year-to-date despite recent buying activity, exemplifying the adage that what goes up must come down.