DLF To Fortis, Jefferies Lists Its Top Bottom-Fishing Picks Amid Volatility

Jefferies has listed its top bottom-fishing stock picks as a spike in market volatility prompts investors to change strategies.

DLF To Fortis, Jefferies Lists Its Top Bottom-Fishing Picks Amid Volatility

Jefferies has listed its top bottom-fishing stock picks as a spike in market volatility prompts investors to change strategies.

The Nifty 50 has dropped nearly 20% from its high in October last year and is now around the 10-year average, with several stocks down by much more, the financial services provider said in a June 20 report.

“We scan our coverage for stocks down over 25% from 52-week highs and in which analysts have conviction,” it said. These stocks also offer median 29% earnings CAGR in FY22-24 and 15% median FY24 return on equity.

The bottom-fishing stock picks are:

Table with 4 columns and 15 rows. Currently displaying rows 1 to 15.
IndusInd Bank 1,250 Turnaround in earnings seen as credit costs to decline towards 1.7-2% of average loans. Topline to improve with a pick-up in micro-lending and new initiatives. 43 buys, 4 holds and 1 sell
ICICI Prudential 770 Diversity in product mix and distribution channels led to reduced volatility and improved profitability. Premiums to grow at a 17% CAGR over FY22-24. 29 buys, 3 holds and 2 sells
LIC Housing Finance 510 Momentum in housing loans and a hike in lending rates should be tailwinds for better NII growth going forward, credit costs should also normalize 28 buys, 3 holds and 4 sells
Piramal Enterprises 2,530 Expect retail housing book to scale up, asset quality in its real estate book is holding up. Valuations appear attractive post recent pullback 8 buys, 0 holds and 0 sells
Infosys 1,830 Sharp fall overdone, new CEO brought change, well-positioned to deliver 11/15% revenue and EPS CAGR over FY23-25. 39 buys, 5 holds and 3 sells
Coforge 4,650 Showed turnaround under the new management, recovery in travel vertical and scale-up of BFS vertical are key growth drivers. 21 buys, 5 holds and 1 sell
Godrej Consumer 970 Good turnaround candidate under new CEO, focus on simplification, growing category penetration, on course correction that could span several quarters. 31 buys, 3 holds and 1 sell
Jubilant Foodworks 580 Pullback factors in most of the risks, Domino's potential of 3,000 stores, network expansion should drive growth while operating leverage should keep margins steady 22 buys, 5 holds and 4 sells
Crompton Greaves Consumer 540 Robust category growth prospects, numerous initiatives, asset-light model 40 buys, 2 holds and 2 sells
Voltas 1,385 Focus now is on strengthening management bandwidth, regaining lost market share 20 buys, 14 holds and 7 sells
Dixon Technologies 5,300 PLI scheme beneficiary, demand resilience seen, with new products 14 buys, 3 holds and 4 sells
Godrej Properties 2,100 The only national, resi-focused developer with a strong execution track record amid real estate upcycle 6 buys, 5 holds and 9 sells
DLF 434 One of few active developers post-consolidation in NCR, office market is also improving as physical occupancies rise, cash generations strong 20 buys, 2 holds and 1 sell
Fortis 301 Brownfield bed expansion, turnaround of low-margin hospitals to boost profitability 11 buys, 0 holds and 0 sell
Gland Pharma 4,119 Short growth to be driven by market expansion and volume growth in key products. Mid to high teens of volume growth and 6-8% of new product growth to result in 20% growth for the company 15 buys, 1 hold and 3 sells