A 52-Week Low Bargain Gaining Investors’ Attention

  • Stock Market Analysis

While any stock trading near its 52-week low might not be suited for a quick momentum play, however from the value perspective, they can be a great addition to the portfolio. One high-quality stock that’s just inching up from its 52-week low is Matrimony.com Limited.

It is a well-known online matchmaking service with a market capitalization of INR 1,190 crore. Differentiates itself from other players in India by following a micro-market strategy, offering a range of targeted and customized products and services that are tailored to meet the requirements of customers. It comprises a network of 17 different regional portals based on varied regions such as TamilMatrimony, KeralaMatrimony, TeluguMatrimony, BengaliMatrimony, HindiMatrimony, etc

Since FY17, the company has been making profits and reported a net income of INR 46.68 crore in FY23. It is interesting to note, that FIIs hold a good 25.55% stake in the company, while DIIs hold 6.77% interest. Generally, we do not get to see such a strong interest from big fund houses in small companies.

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On the technical front, the stock recently tanked to a new 52-week low of INR 499.25 on 21 February 2024. Since then it has witnessed some investors’ demand and the stock recovered to the CMP of INR 535. But how far it can go from here? The next resistance is present around INR 590 - 600, meaning a decent move of INR 65 can still be achieved in this rally.

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However, its fair value is even higher, at INR 698, depicting a 30% upside potential. This is the average of 13 intrinsic values derived from 13 different financial models. Such values are key to investing on the fundamental ground as investors get a very realistic level of where to book their profits.

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2 Analysts are also covering this stock and are giving an upside target of INR 648. Although the dividend yield is low, the company has never skipped paying dividends in the last 6 years, an insight derived from ProTips.

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