An Overview

The Sensex gained 8.8%, while the Nifty gained 9% in 2022. Nevertheless, markets will still be down in 2023. Monetary policy compression by central banks throughout the globe, along with the Ukraine-Russia conflict, have weighed on the stock market.

While companies with extravagant values have plummeted, even the bluest of blue chips have been hit by the downturn. This post discusses the five weakest-performing stocks of 2022 up to this point. They belong to the BSE 100 index. Check them out.

1. Tech Mahindra

The firm is the Mahindra Group's IT division. It offers a wide variety of IT services to a diverse set of business clients. Tech Mahindra shares were down in 2022, tracking a general fall in IT companies. This sector will have a 33x growth in the next 10 years. This type of growth is uncommon these days. It might be a 33x opportunity by 2030. This industry will dominate for the next ten years. This could become one of the stock industry's fastest-growing industries by 2030 and potentially even beyond. You just cannot ignore this industry as an investment today. Otherwise, you might be throwing away a lot of money.

IT equities have been under pressure this year owing to concerns about a worldwide recession. Unfortunately, May 2022 turned out to be a disastrous month for them. Disappointing earnings releases added to the troubles, as IT businesses' profits shrank owing to increased attrition. As labour expenditures rose, Tech Mahindra's operational profit margins fell to 11% in the June 2022 quarter, down from 13.2% the previous year. Attrition was 22% greater in the third quarter than in the previous year.

Consequently, the company's net profit fell 16.4% year on year, despite a 24.6% year-on-year growth in sales. The company's management has said that it would continue to monitor the worldwide economic landscape. To overcome the challenges, they will remain focused on cost reduction and cash conversion. It intends to increase the company's profitability via better operational indicators throughout the fiscal year 2023.

2. Wipro

The corporation is a worldwide leader in information technology (IT), consulting, plus business process services (BPS). It is India's fourth biggest player, after only TCS, Infosys, and HCL Technologies. Wipro's stock was down in 2022 due to the same grounds as Tech Mahindra's.

Wipro also reported poor earnings for the June 2022 quarter. The company's net profit fell 20.9% year on year, despite a 17.9% year-on-year growth in sales. Its operational profit margin fell to 18% from 23% the previous year as labour expenditures rose. During the quarter, the firm added 15,446 net new employees. Wipro has a high attrition rate of 23.3%. Nevertheless, this was a little lower than the 23.8% recorded in March 2022.

According to the company's CEO, Thierry Delaporte, turnover is mild compared to the prior three quarters. He expects it to reduce further in the next quarters. Nevertheless, revenue is expected to climb by 3-5% in 2023, according to the business. It anticipates its IT Services segment to generate roughly $2.8 billion in sales.

3. Larsen & Toubro Infotech

LTI is Larsen & Toubro's information technology division. In regards to revenue, it is India's sixth biggest IT business. IT stocks rose as a result of increased demand for services during an epidemic. As a result, appraisals became excessive. However, the surge has weakened since then, bringing many expensive equities with it. One of them was LTI.

At the end of the year 2021, the stock reached an all-time peak PE Ratio of 60.7. It has a strong PE ratio of 34.5. Going ahead, management has stated that the order backlog will guarantee that the transaction momentum is maintained. It intends to maintain its significant growth in the fiscal year 2023.

4. Piramal Enterprises

Piramal Enterprises is one of India's biggest and most diverse corporations. The company's operations are split into two sectors: financial services and medicines. Piramal Enterprises' shares are down in 2022 as a result of their purchase of the indebted Dewan Housing Finance Corporation Ltd. (DHFL). The business would buy troubled debts from DHFL's loan portfolio as part of the deal.

However, the administration has said that the purchase would result in a loan disbursement of around ₹35 billion in the following quarter. Due to rising interest payments, the company's net profit fell 9% year on year in the June 2022 quarter. Interest costs grew 13% year on year to ₹ 11.1 billion, up from ₹9.9 billion the previous year.

5. Mphasis

Mphasis is the last name on our list. It is a multinational supplier of IT solutions that specializes in cloud and cognitive services. Mphasis shares were down in 2022, reflecting the slump in IT equities. Stocks of smaller firms declined as shares of major corporations, as TCS and Infosys fell.

The corporation, on the other hand, announced good profits for the June 2022 quarter. It recorded an 18.3% year-on-year rise in net profit on the heels of a 26.8% year-on-year growth in sales. The corporation also maintained its operating profit margin by keeping staff expenses under control.

Wrapping Up

Volatility in the market is anticipated to persist as the US Fed raises interest rates in the coming months, keeping FII investors on edge. While such declines might induce panic, they also provide long-term