Key Points
There are some businesses whose underlying nature is such that they don't have any sudden spike in their profits..
The growth could be because of many reasons, it may be because of the fact that penetration of that good or service is very low and over a period of time as it improves, both top and bottom line keep moving upward..
In case of diagnostics, from dizzy heights of valuation in 2021 to today where it is being seen as a sector where there is nothing worth looking at this point of time due to multiple issues..
In the last four years, many sectors have made a comeback and there are many others who have appeared to have seen a full life cycle in this short time period..
From all the love on the street which made them touch dizzy heights of valuations during covid and then a realization that street is paying too much for them..
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Is the worst of headwinds behind them? 5 agrochemical stocks with upside potential of up to 32%
07, Mar, 24While they had been listed for a long period of time, Indian companies in agro chemical space got the real attention of the street only four years back. As many tailwinds appeared on the scene, there was strong re-rating of the whole sector. Typically, what happens when a sector gets re-rated is that valuations run ahead of time and there are too many eyes which are watching the sector. So, if there is even a little bit of disappointment, the selling pressure is also equally high. In the case of agro chemicals there were some real problems which came up soon after the re-rating took place. Chinese companies become overactive and dumping, globally inventory levels reaching very high for some segments. As every business has a cycle, it is worthwhile to bring stocks on your watchlist when the business cycle is down.