11 valuable Nifty 50 stocks that missed the rally and underperformed the benchmark

Aug 7, 2021

By: Bhakti Makwana

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Britannia Industries, down 8.4 percent in the last one year

The Indian food and beverage company is the only company that showed a negative return in the last one year. June quarter profit (FY22) declined 29 percent year-on-year due to restrictions amid the second wave of the pandemic.

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Reliance Industries, down 2.67 percent year-on-year

Mukesh Ambani’s oil-to-telecom conglomerate was down almost 3 percent in the last one year. Stock gained immensely before the pandemic hit. June quarter (FY22) net profit was down 7.2 percent year-on-year.

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Dr Reddy’s Laboratories, up 4.65 percent in one year

The leading pharmaceutical company gave marginal returns in the last one year. Posted a 1.5 percent decline in year-on-year net profit for June quarter.

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Hero MotoCorp, up 4.95 percent in one year

Second wave of the pandemic disrupted sales for the two wheeler company. Sales dipped 12.6 percent year-on-year in July.

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Hindustan Unilever, up 7.33 percent in the past year

Soap titan HUL gained just 6 percent in the last year. The FMCG segment faced several challenges on the distribution front due to the second wave of COVID-19. Net profit fell 3.85 percent sequentially.

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Maruti Suzuki India, up 6.32 percent

Globally and domestically, the automotive manufacturers are facing shortages of semiconductor chips, which is scaling down overall production. Net profit declined 62 percent sequentially in the June quarter.

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Bharti Airtel, up 8.40 percent in a year

The telecom operator underperformed the index badly amidst cut throat competition in the sector. June quarter net profit slipped 63 percent sequentially.

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Nestle India, up 7.34 percent

The manufacturer of popular noodle brand Maggi gave very little returns compared to Nifty 50 as it was impacted by the second wave of the pandemic. Net profit fell 10.5 percent sequentially in the June quarter.

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ITC, up 9.28 percent in year

Another FMCG giant, which underperformed the benchmark Nifty 50 on localised lockdowns and restricted hours of convenience store operations in the second half of the year. It has gained more than 5 percent in the last one month as net profit jumped 30 percent year-on-year in the June quarter.

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HDFC Life Insurance, up 10.95 percent in one year

The life insurance company underperformed the benchmark as its claims soared due to the pandemic especially in the second half of 2020 when COVID-19 cases were rising. June quarter net profit was down 33 percent on year. The stock however picked up gradually in 2021.

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Bharat Petroleum Corporation, up 8.54 percent in year

Similarly, oil refiner has also underperformed the market during the complete lockdown days while it gained almost 9 percent in the last six months. Besides, the government is looking to privatise the oil refinery by selling over 50 percent stake.

Credit: BCCL

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