2 MNC Stocks With Low P/E, High Dividend Yield

For some reason, we are seeing multinational company stocks lose ground. Gillette India, Sanofi, HUL, Astra Zeneca, Whirlpool India etc., are stocks that are very close to their 52-week lows. Here are 2 MNC stocks that you could buy for good dividends and which are also low on price to earnings multiples.

Castrol India

Castrol India is a market leader in India, in the lubricants business. This stock at the current market price of Rs 105, is not very far away from its 52-week low of Rs 99. The company has been a consistent performer over the last few quarters and there has been no significant change in fundamentals for the company over the last few years.

For the quarter ending Dec 31, 2021, the company reported revenues of Rs 1090 crores and net profit of Rs 188 crores. In the last few quarters net profits have been flat. For the year quarter ending Dec 31, 2021, the EPS was nearly Rs 2.

Castrol India: Reasonably valued and good on dividends

We believe based on the quarterly results of the past, the company can report an EPS of Rs 10, which means the stock is discounted 10.5 times, which is relatively cheap for a multinational stock. However, one of the factors that we would likely to draw attention is that input costs for most of corporate India is rising and this may even playout for a company like Castrol India. So, unless the company increases prices, margins may be impacted.

Castrol India: Strong on dividend yields

Castrol India is also strong on dividend yields. For the year ending December 2021 Castrol India has declared an equity dividend of 110.00% amounting to Rs 5.5 per share. At the current share price of Rs 107 it results in a dividend yield of 5.14%, which is pretty decent.

The company has a consistent track record of declaring dividends and we do not see significant changes being made to the dividends being declared by the company.

Oracle Financial Services: Strong on fundamentals

This is another stock that is strong on fundamentals with a low p/e and strong dividend track record. Oracle Financial Services like Castrol India is a MNC. The company is into software and related services for the banking and insurance sector in India and abroad. The company has over the years reported good quarterly results. For the quarter ending Dec 31, 2021, the company reported revenue of Rs 939 crores, with net profits of Rs 388 crores.

Oracle Financial Services: Good on dividend yields

For the financial year ending March 31, 2021, the company declared a dividend f Rs 200 per share, which on a price of Rs 3547, translates to a dividend yield of 5.66%, which is not bad. The stock is also trading at a trailing p/e of 18 times, which is cheap, when compared to other IT stocks.

We believe going ahead the company is likely to enhance its dividends, which makes the stock rather attractive at the current rates. Buy the stock and keep for the long term for its good fundamentals and decent dividends.