Lupin, Pfizer, PI Industries, other stocks bucked the trend; post strong profits

Stock indices have plunged over 8 per cent since August 20. BSE’s mid-cap and small-cap indices have dropped 8 per cent and 10 per cent, respectively during the same period, eroding investor wealth of about Rs 8.6 lakh crore. But, there are enough stocks that have managed to withstand this onslaught, thanks to better earnings prospects. A study of performance of the CNX 500 index shows over 200 stocks have been resilient.

Companies such as Advanta, Cyient, Lupin, Pfizer, PI Industries, Kansai Nerolac and Torrent Pharma among others, which have weathered the storm, have posted a strong profit growth for the year ended March 2015.

“Stocks which have run up sharply without the support of fundamentals have started cracking, while investors are still betting on those stocks with clear cut earnings growth visible,” said Chokkalingam G, founder & CEO, Equinomics Research & Advisory.

Firms like Lupin, PI Industries, Kansai Nerolac and Vinati Organics have reported over 30 per cent growth in net profits.

“Despite the fall, we reiterate buy on dips and suggest gradual addition of fundamentally strong stocks with medium to long-term horizon,” said Jayant Manglik, president, Religare Securities.