I was recently searching for stocks that might be worth bottom-fishing, and this company showed up on my list. What caught my eye immediately was that it has lost about 60% of its value in just 9 months since listing.
At first, I thought it might be one of those typical IPO traps. But when I dug a bit deeper, I was surprised to find that Motilal Oswal was consistently bullish on this stock.
On the IPO itself, they were bullish with a target price of ₹680, and then, in November, they had a target of ₹610. They even reiterated their bullish stance in February with a revised target of ₹350.
Here’s what’s interesting: despite the stock price continually crashing over the months, Motilal Oswal didn’t seem to adjust their outlook. They failed to analyze or acknowledge what was going wrong, and continued to stay positive about the stock’s future performance.
If “Aal Izz Well.”, it got me thinking.
I can understand how management narratives can sometimes mislead retail investors. But how does an experienced team of analysts, with access to management calls, industry data, and detailed financial models, end up being so off the mark?
Genuinely curious to hear the community’s thoughts:
- Are there other examples where well-known brokerages or analyst teams got it completely wrong?
- How much weight do you personally give to brokerage reports and price targets?
- In situations like this, is it usually management overpromising, analysts being too optimistic, or something else entirely?
Attaching a few screenshots for context.
