As Indian markets continue to go from strength to strength, hitting fresh all-time highs, investors are wondering where about buying opportunities. Analysts have said after the recent run-up in the broader market, the large-cap companies offer a better margin of safety compared to the rest of the segments.
While most of the large-cap stocks have also performed well, some of the stocks have underperformed in the last 3 years. Benzinga India rounded up the top 10 underperforming stocks among the large-cap stocks. By large-cap stocks, we checked among the top 100 companies in NSE by market capitalization.
| Company | P/E | 3 Year Return % | Price To Book Ratio |
|---|---|---|---|
| Adani Total Gas | 126.50 | -18.00 | 24.45 |
| Adani Energy Solutions | 112.34 | -15.85 | 9.00 |
| SBI Cards | 30.89 | -9.42 | 6.11 |
| Wipro | 25.02 | -7.21 | 3.74 |
| Shree Cements | 42.89 | -6.04 | 4.40 |
| Berger Paints | 62.19 | -2.98 | 13.44 |
| Kotak Mahindra Bank | 20.16 | -2.36 | 2.84 |
| HDFC Life Insurance | 93.68 | -1.58 | 9.96 |
| Bajaj Finance | 31.31 | -0.96 | 6.17 |
| Asian Paints | 62.36 | -0.15 | 16.85 |
Adani Total Gas
Adani Total Gas was the worst performing large-cap stock in the last 3 years with a decline of 18%. Adani Total Gas hasn’t had a great 2024 so far with stock falling by 21% so far. Despite the fall, the stock is trading at a P/E of 126.50 and a price-to-book ratio of 24.45. In June quarter results, the company’s net profit rose by 14% year on year to ₹171.84 crore.
Adani Green Energy Solutions
Another Adani Group stock among the underperformers, Adani Green has seen its stock fall above 15% in the last 3 years. The stock however had a stellar 2024 with a 25% return in the year to date so far. Similar to its peers, the stock is also trading at a P/E of 112.34 and a price-to-book ratio of 9. In the recent quarterly results, the company’s net profit surged over 38% YoY to ₹446 crore.
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SBI Cards
SBI Cards and Payments Service is the third worst performing stock with a decline of over 9%. The stock has underperformed the broader market as well with the stock rising by 2.91% in the year so far. SBI Cards has a P/E ratio of 30.89 and a price-to-book ratio of 6.11. SBI Cards reported a 0.19% YoY increase in net profit to ₹594.45 crore in the June quarter.
Wipro
The IT major is not having a great time at the bourses compared to its peers and it is reflected in its performance. Wipro’s shares were down 7.21% in the last 3 years. In the year so far, Wipro’s shares have gained 12.79%, performing much better than the longer trend. The stock is trading at a P/E of 25.02 and a price-to-book ratio of 3.74. Wipro’s net profit rose 4.64% YoY to ₹3,003.20 crore.
Shree Cements
Shree Cements’ stock declined 6.04% in the last 3 years. The stock’s struggles continued in 2024 as it fell 11.68% in the year so far. Despite this, the stock is trading at a P/E of 42.89 and a price-to-book ratio of 4.40. The underperformance might be due to its financial results as Shree Cements’s net profit fell by 51.32% YoY to ₹278.61 crore in its Q1 results.
Berger Paints
Berger Paints had an indifferent couple of years with a 3-year stock performance of -2.98%. The stock performed a tad better in 2024 with returns of 3.22%. Despite this, the stock is trading at a P/E of 62.19 and a price-to-book ratio of 13.44. In its Q1 results, Berger Paints’ net profit fell 0.22% YoY to ₹353.56 crore.
Kotak Mahindra Bank
Kotak Mahindra Bank is another company that has seen an underwhelming run. The stock fell 2.36% during the last 3 years. The stock has been trading flat in the year so far, up by 0.01%. The stock is trading at a P/E of 20.16 and a price-to-book ratio of 2.84. The private lender’s net profit fell 12.18% to ₹3,644.76 crore.
HDFC Life Insurance
HDFC Life Insurance also had a rough last 3 years with a decline of 1.58%. The stock has gained 9.76% in the year so far. The life insurance company is still trading at a P/E of 93.68 and a price-to-book ratio of 9.96. The company’s net profit rose 14.94% to ₹478.97 crore in Q1.
Bajaj Finance
Bajaj Finance’s stock has declined 0.96% in the last 3 years. The stock gained 4.10% in 2024 so far. The NBFC is trading at a P/E of 31.31 and a price-to-book ratio of 6.17. The company reported a 13.82% YoY increase in net profit to ₹3,911.98 crore in the June quarter.
Asian Paints
Asian Paints fell 0.15% in the last 3 years. The stock in the year so far has fallen by 2.44%. The company is still trading at a P/E of 62.36 and a price-to-book ratio of 16.85. The company’s net profit fell 24.54% YoY to ₹1,169.98 crore in Q1.
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