Analyst's Diary: Out of season

You have heard the sirens. "Everything is too expensive." "Do not invest now!" But amid this surging bull market, a few hidden gems are trading at 52-week lows despite posting a 10 per cent annual growth in earnings over the past five years. Yet, these stocks seem to be ignored by investors. In our analysis, 41 companies (as of February 9, 2024) with a market capitalisation of at least Rs 1,000 crore were trading within 5 per cent of their 52-week low price. The number came down to 13 after applying the following filters: A five-year median ROE of at least 20 per cent. An annual profit after tax growth of at least 10 per cent over the last five years. Among them, we look at the top five companies based on their five-year profit after tax growth to understand the possible reasons for the market's lack of interest. Best Agrolife Formerly known as Sahyog Multibase, the company adopted the "Best" brand name after amalgamating with Best Agrochem in FY20. Best Agrolife manufactures a wide range of crop protection products in both generic and patented molecule segments. The company witnessed a remarkable FY23, recording a YoY revenue and profit after tax growth of 44 and 83 per cent, respectively. The growth was driven by new product launches, increased sale touchpoints, and favourable raw material costs, leading to a four percentage point jump in the operating profit margi