Stocks with sustainable earnings that have corrected

While the benchmark Sensex and Nifty have managed to hold ground, the mid-cap and small-cap indices have come off by more than 10 per cent this year. Individual stocks have corrected even more sharply. While the market has punished stocks with weak corporate governance standards and poor fundamentals, the correction has also extended to those with good earnings potential.
 
ICICI Securities has identified stocks that have come off by more than 20 per cent from their 2018 highs, but offer “sustainable earnings” growth. For this, the brokerage has run filters such as low variation in earnings in the past five years; industry growth trend and outlook looks stable or is improving; balance sheet strength and future expectations are in sync with historical trend. Following stocks have got screened:

Source: ICICI Securities; Note:*CAGR over FY18-20E | Compiled by Samie Modak