In this blog, we will look at Top 10 Beaten Down Stocks to buy in 2022.

Buying a fundamentally strong stock in a beaten downstate is everyone’s dream and a strategy as old as the stock market itself.

Searching for stocks at attractive valuations in the beaten-down sectors list, especially when the market is down and out, has always been considered a sure-shot formula to make money. 

A stock of a company with solid business available if found at a beaten-down price can be a very high-risk/high-return opportunity, which can add alpha – superior returns over market returns.

A Down Market can create solid investment opportunities for people who can balance the patience when invested and the aggression required while investing.

Criteria to Find Best Beaten Down Stocks:

  • 5Y Revenue CAGR – The stocks with an Revenue CAGR of more than 15% for the past 5 years.
  • 5Y Avg. EBITDA Margin – The stocks with more than 10% of Average EBITDA Margin for the past 5 years.
  • 5Y Avg. RoE – The stocks with more than 15% of Average Return on Equity for the past 5 years.
  • % Down from 52 week high – The stocks which are trading more than 15% downside from their 52 week high.

Best Beaten Down Stocks to buy right now :

  • Info Edge Ltd – It is one of an India’s premier online classifieds company with a portfolio of brands. It owns various brands in different fields like naukri.com (online recruitment), 99acres.com (online real estate), jeevansathi.com (online matrimonial) as well as shiksha.com (online education information services).
  • Alkyl Amines Chemicals Ltd – The Company is in the business of manufacturing and marketing various aliphatic amines, amine derivatives and other speciality chemicals for the last 30 years. It has three manufacturing sites with 12 production plants and related utilities at Patalganga and Kurkumbh in Maharashtra and Dahej in Gujarat.
  • Latent View Analytics Ltd – The Company provides analytics services such as data and analytics consulting, business analytics & insights, advanced predictive analytics, data engineering, and digital solutions. The company provides services to blue-chip companies in Technology, BFSI, CPG & Retail, Industrials, and other industry domains.
  • Happiest Minds Tech. Ltd – Incorporated in FY11, HMTL is headquartered in Bengaluru. The company provides IT solutions by leveraging disruptive technologies: mobility, big data analytics, security, cloud computing, social computing, machine-to-machine internet of things, unified communications.
  • Route Mobile Ltd – Route Mobile is a Cloud Communication Platform provider, catering to enterprises, over the-top (OTT) players and mobile network operators (MNO). Their product portfolio includes smart solutions in Messaging, Voice, Email, and SMS Filtering, Analytics & Monetization.
  • Deepak Nitrite Ltd – Deepak Nitrite has a 70% market share in sodium nitrite, sodium nitrate and NitroToluenes in India. The company has been successful in substituting the majority of the local market imports of Phenol and Acetone and attained a market share of about 65% in the country.
  • Rossari Biotech Ltd – Rossari is engaged in manufacturing speciality chemicals with its focus on three business verticals of home, personal care & performance chemicals (HPPC); textile specialty chemicals (TSC) and animal health & nutrition (AHN). Within the three verticals, it has over 3500 products catering to diverse end-user industries.
  • Supreme Industries Ltd – It is one of the leading plastic products manufacturing company in India having 25 manufacturing facilities spread across the country, offering a wide and comprehensive range of plastic products in India. The company operates in various product categories viz. Plastic Piping System, Cross Laminated Films & Products, etc.
  • Sona BLW Precision Forgings Ltd – It is one of India’s leading automotive technology companies which designs, manufactures and supplies highly engineered, mission critical automotive components and it is one of the largest exporters of starter motors from India. Currently 14% of the company’s revenue mix is contributed by BEVs and 27% by Micro Hybrid/Hybrid.
  • PI Industries Ltd – It is a leading player in the domestic agricultural inputs sector, primarily dealing in agrochemicals and plant nutrients. In the CSM exports segment, its business interests include dealing in custom synthesis and contract manufacturing of chemicals.

Hope you liked our article on Beaten Down Stocks, please read our other articles on “Top 3 Picks for Semiconductor Shortage“