Adani Green to Honasa Consumer: 5 stocks that fell over 50% from September highs; here’s why

The downfall of Indian equity benchmarks does not seem to end soon. The equity markets came under fresh selling pressure on Monday, February 24 mirroring losses in other Asian markets after the US markets plunged on Friday. The Dow Jones, Nasdaq and S&P 500 dropped 1.69%, 2.20% and 1.71%, respectively, on Friday amid concerns of a slowdown in the US economy, threat of new tariffs and worries over rising inflation. Taking cues from weak sentiment, the 30-share SENSEX dropped 1.14% and NIFTY50 tumbled 1.06%.

The benchmark NIFTY50 index has dropped 14.30% from its record high of 26,277.35 and SENSEX has crashed 11,523.85 points or 13.40% from its all-time high of 85,978.25 hit on September 27. The picture is more sombre in the mid and smallcap space as the NIFTY MIDCAP100 index has dropped 18.06% from its record high of 60,925.95 it hit on September 24. Meanwhile, the NIFTY SMALLCAP100 index has fallen 21.38% from the record high of 19,716.20 it touched on December 12.

Adani Green Energy

Shares of Gautam Adani-backed renewable energy company have dropped 57% from the high of ₹1,981.85. The stock has been facing selling pressure after the company decided to withdraw from two proposed wind power projects in Sri Lanka. The Sri Lankan government initiated talks with the Adani Group last month to lower the cost of the projects, which were estimated at $1 billion.

Sterling and Wilson Renewable Energy

The renewable energy engineering, procurement and construction (EPC) solutions provider has seen its shares drop by 57.07%. Analysts say that a sharp rally in the company in 2023 and 2024 when it jumped over 100% led to a spike in valuations and with ongoing correction in the market the stock is witnessing selling pressure.

Whirlpool of India

Shares of the white goods maker have fallen 55.51% in the ongoing selling pressure that started in October. The stock has been on a downward spiral after the company informed stock exchanges that its parent company plans to sell a 20% stake in the company.

The company in an exchange filing last month said, "Today, as part of its fourth-quarter earnings release, Whirlpool Corporation announced its intention to sell down its ownership interest in Whirlpool of India Ltd. ("Whirlpool India") to approximately 20% by mid to late 2025, by way of one or more market sales ("Anticipated Sell-Down"). Whirlpool Corporation, which currently holds a 51% ownership interest in Whirlpool India, expects to remain the largest shareholder following completion of the anticipated sell-down."

Kirloskar Oil Engines

Shares of the Pune-based engine maker have plunged 52.55% amid the ongoing legal tussle between the family members of promoters. As per a report by Mint, market regulator Securities and Exchange Board of India (SEBI) last month opposed an appeal filed by Kirloskar Oil Engines Ltd (KOEL) in the Securities Appellate Tribunal (SAT) challenging the regulator's advisory to the company to disclose the Deed of Family Settlement (DFS).

Honasa Consumer

Shares of the Gurugram-based cosmetics retail chain operator Mamaearth have sunk 51% from their September highs as analysts say that its sky-high valuations in September did not catch up with the earnings. In September, Honasa Consumer traded at a price-to-earnings ratio of over 150 times, which has now corrected to 105.9 times. In the quarter ended December 2024, the company's revenue rose 4% to ₹470 crore annually from ₹451 crore while its net profit dropped 25% to ₹21.58 crore.