7 Good Quality Stocks Near 52-Week Lows; Should You Buy?

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Markets have been rallying in the last few months, and are rallying to new peaks. However, there are many stocks that are near 52-week lows, while other have hit 52-week lows. Will these stocks recover sharply from here? Some of these stocks maybe a little over their 52-week lows.

Tech Mahindra

Tech Mahindra shares have fallen to Rs 375, which is near about its 52-week low. The company's shares have fallen largely after the margin shocker in the last quarter and poor sentiments towards IT stocks. In fact, most IT stocks are now languishing at near 52-week lows. The good thing about Tech Mahindra is that its valuations in terms of p/e is the cheapest in comparison to some of the other tech stocks. 

The p/e at around 12 times one year forward earnings may make it an interesting contrarian play.

Check stock quote of Tech Mahindra here

Coal India

Coal India is trading at Rs 252, which is marginally higher than its 52-week low price of Rs 242. The current market price offers great scope for appreciation in the stock, given the huge dividend yield of almost 7-8 per cent on the shares. The company is a cash rich and debt free company, which makes the stock even more interesting to buy at the current levels.

The company has a monopoly business and we believe that coal prices are headed higher in the coming days.

Check stock quote of Coal India here

TV Today

TV Today owns and operates the Aaj Tak and Headlines Today news channels in Hindi and English respectively. The stock has recently hit a 52-week low of Rs 232, as against the current market price of Rs 256. The company has a good business model and remains inexpensive at the current levels. In fact, the stock trades at a p/e of just about 12-13 times one year forward earnings. This is rather cheap for a media company, where valuations are way higher. A good stock to accumulate keeping a long term perspective in mind.

Check stock quote of TV Today here

NMDC

NMDC is a stock that is into iron ore mining, with majority of shares being held by the Government of India. The stock touched a 52-week low of Rs 96 and is currently trading at Rs 115. The company is not a bad bet as at the current price as the dividend yield on the stock works to around 7 per cent. This is of course if the company retains the same dividend as last year.

The stock is also trading at very decent valuations of around 10 times price to earnings multiple. Not a bad bet at the current levels.

Check stock quote of NMDC here

Tata Motors DVR

The Tata Motors DVR is trading just 2.85 per cent above its 52-week low of Rs 257. The DVR is currently trading at Rs 263. The Tata Motors DVRs offer you 5 per cent more dividend than equity shares.

The DVRs are a play on the performance of the company and that has not been too great in the last few quarters. However, if there is a sharp recovery in the performance of the JLR, we could see the DVRs rally. A good bet at the current levels.

Read difference between DVRs and equity shares here

Zodiac Clothing

Zodiac Clothing has also seen its share price drop and is currently trading at Rs 218, against its 52-week low price of Rs 192.

The company has been facing stiff competition in the clothing segment and the stock has been languishing despite the markets rallying. This stock would be a slightly risky bet at the current levels.

Disclaimer

The article is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author  do not accept culpability for losses and/or damages arising based on information in this article.

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