IRCTC, IndiaMART, Cummins India and others have been under pressure in the last 5 days but still worth buying

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IRCTC, IndiaMART, Cummins India and others have been under pressure in the last 5 days but still worth buying
  • Markets have been volatile in the last one week on China's property developer giant Evergrande’s fiasco.
  • This factor has cautioned investors and impacted stocks across the market.
  • Here are five stocks that have fallen in the last five days, but still hold strong on future prospects.
Markets have been volatile in the last one week on account of China's property developer giant Evergrande that is likely to default on $83.5 million interest due on its loans to banks.

Such a large default by Evergrande may leave a hole in China’s finances, which is among the top consumers of commodities in the world. This factor has directly or indirectly cautioned many investors in the market leading to fall in some of the valued stocks in the last five days.

Here are stocks that have fallen in the last five days, but still hold strong on future prospects:

IRCTC sees 4% fall in last 5 days, but analysts bullish on company’s expansion plans

IRCTC sees 4% fall in last 5 days, but analysts bullish on company’s expansion plans
IRCTC

Shares of Indian Railway Catering and Tourism Corporation (IRCTC) have slipped 4% in the last five days. Analysts however are positive on the stock and for the long term. "IRCTC shares have been rallying continuously from ₹2500 levels over aggressive plans of expansion and asset monetisation. We are still bullish on this counter for the long term but in the short term, we expect some correction as it has made a huge rally," said Rahul Sharma, cofounder at Equity99. Moreover, the company has been performing well on the financial front as it made a profit of ₹82.53 crore in June quarter 2021 as compared to a loss of ₹24.60 crore during the same period last year.

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IndiaMART InterMESH has tumbled close to 6% in the last 5 days

IndiaMART InterMESH has tumbled close to 6% in the last 5 days
BCCL/ Dinesh Agarwal, founder and CEO, IndiaMart

Business-to-Business (B2B) e-commerce platform IndiaMart InterMESH has slipped 6% in the last five days. However, analysts are inclined towards the company’s growth prospects.

Analysts at HDFC Securities reportedly maintain positive stance on IndiaMART based on higher visibility, increased activity on the platform despite COVID-19, immense growth opportunity in the highly-underpenetrated B2B e-commerce space, healthy cash reserves of ₹2,420 crore that can be leveraged for further investments and expected boost from adjacent offerings in accounting, logistics and SaaS based solutions.

Moreover, the B2B e-commerce platform’s consolidated net profit grew by 19% year-on-year to ₹88 crore for the quarter ended June 30, 2021.

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Chemical manufacturing company Atul has dropped 5% in the last five days

Chemical manufacturing company Atul has dropped 5% in the last five days
Atul

Chemical manufacturers have been in the limelight for some time now due to the strong outlook for the sector. Hence, the recent fall in Atul's stock triggered by concerns over demand for commodities like chemicals on fears of Evergrande default is only a near term risk. Analysts believe that the government's Atmanirbhar Bharat and production-linked Incentive (PLI) schemes will benefit chemical manufacturers.

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Cummins India have dipped 5% in the last 5 days

Cummins India have dipped 5% in the last 5 days
Cummins India

Although the Pune-based company has fallen 5% in the last five days to ₹988, analysts are firm that the share price would cross ₹1,250 on solid outlook.

“The company is witnessing recovery in key segments such as power generation, construction, and mining, which are expected to do well going ahead. In exports, demand is expected to come back strongly, where North America, China, and India are expected to be the growth areas,” said analysts at ShareKhan.

The brokerage sees further room for upside considering strong growth potential in end-user industries, strong balance sheet, and steady cash flow generation as it retains ‘buy’ rating on the stock with target price of ₹1,252. Analysts at Yes Securities have also given a ‘buy’ rating on Cummins India with a target price of ₹1100.

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Zee Entertainment Enterprises has crashed 9.8% in the last 5 days

Zee Entertainment Enterprises has crashed 9.8% in the last 5 days
BCCL

Shares of the media company have fallen about 10% after surging more than 50% in the last one month. The volatility in the stock is also due to the awaited extraordinary general meeting (EGM) that is expected to announce many changes.

Analysts at Edelweiss Securities reportedly feel that the stock is likely to stay volatile given uncertainty around leadership and disruption in media. “Longer term, corporate governance standards would improve. We expect strong recovery in ad spends industry-wide with FMCG companies ramping up marketing given the upcoming festive period.

Improving mobility should help recovery in ad spends across sectors as we move into the second half of FY22,” said the brokerage firm. It has retained ‘buy’ rating on the stock with a target price of ₹343.

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