5 Bluechip Stocks That Have Fallen 15-25% in 1-Month; Should You Buy Them?

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The last 2-3 weeks has seen the markets fallen a tad bit. But, select bluechip stocks have fallen through the roof. Here are 5 bluechip stocks that have come crashing down. Should you buy them now?

State Bank of India

The stock of State Bank of India has fallen from a 1-month high of Rs 196 to the current levels of Rs 168. That is a good 15 per cent.

The bank will declare results on May 27 and you are getting the stock with dividend. Apart from this the stock is nearly at its 52-week low. We believe the stock cannot go down too much from here. A good buy at the current levels, as NPAs will improve dramatically at some stage.

Just Dial

The stock has cracked from Rs 880 on April 26 to the current levels of Rs 680. The stock has fallen largely on the back of quarterly results that have lagged estimates.

We believe there is certainly downside risk to the stock. Investors would do well to avoid this stock, despite the stock having fallen so steeply.

Quickheal Technologies

Quickheal Technologies is one more share that has fallen sharply from Rs 274 to Rs 228.

Quickheal has reported a decent set of quarterly numbers and has also declared a dividend of Rs 25%.

The company has a 30 per cent market share in the domestic anti virus market. The stock is trading at around 10 times 1 year forward Earnings. Fairly valued at the current levels. 

VRL Logistics

VRL Logistics has come crashing down from levels of Rs 408 to Rs 315. The stock is very expensive.

On Tuesday it came crashing down after promoters of the company announced that they would be getting into the airline business.

In fact, it crashed 20 per cent. To add to the misery, profits at the company almost halved for the quarter ending March 31, 2016. This is a stock that you must avoid investing.

Eros International

Eros Entertainment has produced and distributed some of the finest films in Hindi and across languages. It is one of the biggest players in the industry.

The stock has fallen from levels of Rs 220 to the current levels of Rs 173. The company's board is likely to declare a dividend on May 27 along with quarterly results. The stock is trading at a p/e of just 10 times one year forward earnings. Not a bad investment for those looking at long term investment

Read more about: blue chip stocks
Story first published: Wednesday, May 25, 2016, 7:00 [IST]
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