4 Nifty Stocks To Buy That Hit 52-Week Lows This Week

The Sensex and the Nifty plunged in trade this week, as tensions between Ukraine and Russia continued. Here are 4 stocks that dived to 52-week lows and become good interesting stocks to buy on declines.

HDFC

52-week low	52-week high	Fall from 52-week high
2203	3040	-36%

 

The stock of India's largest mortgage lender has fallen to a new 52-week low of Rs 2203 this week and was last trading at Rs 2219. HDFC has been hammered down by Foreign Portfolio Investors, who are selling into almost every blue chip stock. Since HDFC is heavily owned by Foreign Portfolio Investors, we are seeing most of the selling happening in this Nifty stock.

In any case, let's tell you why this stock is a good bet at the current levels. To begin with HDFC owns slightly more than 21% in HDFC Bank and its ownership in HDFC Life is 47.82%, while it owns 52.62% in HDFC Mutual Fund. Apart from this it owns 49.98% in HDFC Ergo.

Some analysts reckon that the stake in the subsidiaries itself is worth Rs 1,200. That leaves the core business at just Rs 1,100. The core business is valued at just 11 times p/e, which makes the stock attractive to buy.

HeroMoto Corp

52-week low	52-week high	Fall from 52-week high
2301	3491	-34%

 This stock like HDFC has fallen sharply from 52 week highs of nearly 34% to a new 52-week low of Rs 2301 hit this week. The stock after falling is trading at a p/e of 17 times, 12 months trailing EPS. However, the p/e is likely to be higher as net profits are likely to fall in the coming quarter on account of slower offtake of vehicles. The company is also to be impacted by an increase in raw material prices.

However, at the current market price the stock becomes interesting for its dividend yield of 4.61%. Should the stock fall to the Rs 2,000 levels, it could be an interesting buy.

 

HDFC Bank

This is another stock that has fallen to 52-week lows. The bank has been a consistent performer for several years now. It is in a habit of showing growth of 20 to 25% every quarter, when compared to the previous year's quarter. The stock has hit a new 52-week low of Rs 1336 and at these levels it becomes a good buy. The shares of HDFC Bank are now trading at a p/e of 21 times based on trailing EPS. We believe that if the bank rakes up an EPS growth of 15 to 20% this year, the p/e gets reduced even further. Buy the stock at is definitely cheaper when compared to peers like ICICI Bank and Kotak Mahindra Bank.

Hindustan Unilever

This large FMCG stock also hit a 52-week low of Rs 1975 and is down from 52 week high levels of Rs 2809. One of the reasons the stock has taken a big hit is that input costs for the company are on the rise. This is going to hit margins for these companies in the coming quarters.

We believe that the stock is still expensive at 50 times p/e. Also, to be honest, HUL is unlikely to show growth like in the past and it looks like volume growth may just be about limited. We suggest buying the stock of HDFC and HDFC Bank as compared to HUL.