Despite the stock markets at record highs, there are many high quality stocks that are very near 52-week lows, while some have just hit 52-week lows. Here are a list of five such stocks:
1. Jyothy Labs
Jyothy Labs, which owns brands like Ujala, Henko, Margo Neem Soap etc., is trading at around Rs 140, which is very close to its 52-week low of Rs 139. The reason for the sudden slump in the stock is numbers that disappointed the street.
Smaller FMCG players are seeing pressure on margins, which is also telling on their stock prices. When economic recovery does take place, we could see margins and profitability recover.
Marico is another FMCG company which owns solid household brands such as Parachute,Saffola, Hair & Care, Set Wet, Mediker and Revive.
The company's stock is trading at Rs 303, against a 52-week low price of Rs 299. Again, worries of growth in some select FMCG companies is weighing on the stock price.
Some investors might see value in some of these stocks at lower levels.
3. Hindustan Zinc
Hindustan Zinc is just 1.2 per cent away from its 52-week low and is currently trading at Rs 191. Again, the company's quarterly numbers did not impress the markets. However, investors are looking at the possibility of a good dividend, which should result in very good dividend yields.
The company is the country's largest zinc and lead player and among the top in the world. However, zinc prices over the last few months have fallen. Interestingly, this is a cash rich company.
Shares in this major bluechip company is just 3.5 per cent away from 52-week lows. The shares are trading at Rs 21.80, against a 52-week low price of Rs 205. The tax on cigarettes in the Union Budget 2020, led to a massive selling in the stock. This is one share that has gone nowhere in the last few months.
This stock is also not very far away from its 52-week low price and is just 4 per cent away. The shares are trading at Rs 106.60, as against a 52-week low price of Rs 101.50.
Many analysts see value in this stock on account if its dividend yield, which on a trailing basis is near 6.56 per cent.
The board of directors are slated to meet on Feb 14 for declaration of quarterly numbers. It's likely that there maybe some pressure on profits, which has already been reflecting in the price of the stock.
About the author:
Sunil Fernandes has spent 25-years reporting on various aspects of business and finance, including mutual funds and equities.