3 Bluechip Stocks At 52-Week Lows: Should You Buy?

Updated: Monday, May 21, 2018, 14:19 [IST]

Markets are down a good 6 per cent from record levels hit in the month of Jan 2018. If not for support from heavyweight IT stocks like TCS and Infosys, the markets would have been even lower. Here are a few bluechip stocks that have crashed to 52-week lows. Buy them with a long-term perspective in mind.

Tata Motors

Tata Motors stock today hit a 52-week low of Rs 297. The makers of the famous Jaguar Landrover range of cars has seen its shares drop, after MSCI, the world's biggest index complier with roughly $12 trillion in assets benchmarked to its products deleted Tata Motors DVR from its last.

3 Bluechip Stocks At 52-Week Lows: Should You Buy?

The stock at a new 52-week low may not be a bad bet. In fact, the domestic business has seen a sharp rebound and JLR is likely to do well, given robust growth rates in key markets like China and the US. The stock is available at a one year forward p/e of just 7 times.

At these levels, there maybe limited downside risk.

UPL

UPL products cater to crop protection. The company has also diversified beyond agrochemicals to include products like seeds, seed treatment solutions, post-harvest solutions and industrial chemicals, among others. The stock at Rs 681, is very close to its 52-week low of Rs 672. At the current levels, there maybe very limited downside in the stock.

If the monsoon season is normal, we could see the next few quarters, particularly good for the company. A good long-term bet at these levels.

Cox & Kings

Cox & Kings is the longest established travel company in the world offering Destination Management, outbound Tourism, Domestic Holidays, Business Travel. Sharekhan had a buycall on the stock earlier this year, with a target of Rs 325.

"We have broadly maintained our earnings estimates for FY2018 and FY2019 and introduced FY2020 earnings estimates through this note. We expect Meininger business to maintain the strong growth momentum as the company is planning to increase the bed capacity to 15,000 beds by end of FY2019.

The bookings in the education business have increased by 6 per cent on y-o-y basis. The domestic leisure travel business will grow by 10-12 per cent, while the international leisure travel business will post better margins in the coming years. Reduction in debt will act as an additional trigger for the stock. We We maintain our Buy recommendation on the stock with the unchanged price target of Rs 325," Sharekhan had said.