Several stocks that were among the market’s biggest winners during the previous bull run have undergone sharp corrections over the past year, with some declining by more than 60% from their peaks. While rich valuations, sector-specific headwinds and profit booking have weighed on investor sentiment, many of these companies continue to operate in industries supported by long-term structural trends.
Here is a closer look at five stocks that have corrected significantly but still retain growth drivers that could support a recovery over time.
Kaynes Technology: Electronics Manufacturing Opportunity Remains Intact
Kaynes Technology emerged as a key beneficiary of India’s electronics manufacturing push, although valuation concerns and broader market volatility have led to a steep correction in the stock.
The company operates across industrial, automotive, aerospace, railway, defence, medical and IoT electronics segments. During FY26, revenue rose 33%, while EBITDA increased 40%, reflecting continued operational momentum.
India’s focus on electronics manufacturing, semiconductor development and import substitution continues to provide a long-term growth runway.
- FY26 revenue growth: 33%
- FY26 EBITDA growth: 40%
- Decline from all-time high of ₹7,716: 60%
- Return in 2026: -18%
KPIT Technologies: Positioned for Software-Defined Vehicles
Concerns over global automotive demand and slower spending by some original equipment manufacturers have weighed on KPIT Technologies, leading to a sharp correction.
The company focuses on software-defined vehicles, autonomous driving technologies, connected mobility, electric powertrains and vehicle engineering solutions.
Revenue crossed $724 million in FY26, supported by continued large deal wins. As the automotive industry accelerates investments in electrification and intelligent vehicles, demand for specialised engineering services could continue to grow.
- FY26 revenue: More than $724 million
- Decline from July 2024 peak of ₹1,928: 61%
- Return in 2026: -34%
Praj Industries: Awaiting the Next Bioenergy Investment Cycle
Investor sentiment toward Praj Industries has been affected by delays in biofuel investments and slower project ordering activity.
However, the company remains exposed to long-term opportunities in ethanol, sustainable aviation fuel, compressed biogas, bio-based chemicals and water treatment. It has operations in more than 100 countries and an order book exceeding ₹4,300 crore.
Government initiatives around ethanol blending and decarbonisation could provide support for future growth.
- Order book: More than ₹4,300 crore
- Global presence: 100-plus countries
- Decline from all-time high of ₹875: 62%
- Return in 2026: 7%
CarTrade Tech: Leveraging the Digital Vehicle Ecosystem
CarTrade Tech operates online vehicle marketplaces, auctions and automotive retail platforms. The stock has experienced considerable volatility since listing, but the company continues to benefit from rising internet penetration and growing digital adoption in vehicle transactions.
Its asset-light model provides scalability, while increasing activity in the used-car market could support long-term growth.
- Decline from all-time high of ₹3,286: 29%
- Return in 2026: -10%
- Recovery from 52-week low of ₹1,522: 44%
Jain Resource Recycling: Benefiting From the Circular Economy
Jain Resource Recycling has emerged as a significant player in India’s metal recycling sector, with operations spanning copper, aluminium and lead recycling.
The company recently crossed ₹9,500 crore in revenue and is expanding into higher-value copper products and downstream opportunities. Growing emphasis on sustainability and resource efficiency could support long-term demand.
- Revenue: More than ₹9,500 crore
- Decline from all-time high of ₹594: 45%
- Return in 2026: -7%
Common Themes Behind the Recovery Potential
Although these companies operate in different industries, each is linked to long-term structural trends:
- Kaynes Technology: Electronics manufacturing and semiconductors.
- KPIT Technologies: Software-defined vehicles and electric mobility.
- Praj Industries: Biofuels and energy transition.
- CarTrade Tech: Digitalisation of automotive transactions.
- Jain Resource Recycling: Sustainability and the circular economy.
Outlook
Sharp stock price declines have tested investor confidence in several former market favourites. However, the industries these companies serve continue to offer long-term growth opportunities.
Whether these stocks eventually recover will depend on execution, earnings growth and the strength of the underlying industry tailwinds. For long-term investors, the focus may be less on how much these stocks have fallen and more on whether the structural opportunities that originally drove their growth remain intact.
TL;DR:
Kaynes Technology, KPIT Technologies, Praj Industries, CarTrade Tech and Jain Resource Recycling have corrected between 29% and 62% from their peaks. Despite the declines, each company remains exposed to long-term themes such as semiconductors, EVs, biofuels, digitalisation and sustainability.
AI Summary
- Five former market favourites have fallen sharply from their highs.
- Kaynes and KPIT are down around 60% from peak levels.
- Praj Industries has corrected 62% despite a ₹4,300 crore order book.
- CarTrade Tech and Jain Resource Recycling remain tied to long-term growth themes.
- Recovery prospects depend on execution and sustained industry tailwinds.
