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12 Bluechip Stocks At 52-Week Lows, Should You Buy These Stocks?
It's carnage across the markets with stocks falling across the board. The Sensex has fallen for the 5th straight day. Here are some stocks that have been beaten down.
Stocks at 52-week lows on May 12
| Stock name | 52-week low | Current market price |
|---|---|---|
| Amara Raja Batteries | Rs 494 | Rs 500 |
| Godrej Industries | Rs 448.80 | Rs 453 |
| ICICI Securities | Rs 462 | Rs 464 |
| Naukri | Rs 3573 | Rs 3601 |
| Nestle India | Rs 16196 | 16297 |
| Paytm | Rs 517 | Rs 519 |
| PNB Housing | Rs 316 | Rs 320.90 |
| RBL Bank | Rs 103.80 | Rs 103.90 |
| SAIL | Rs 80.80 | Rs 80.85 |
| Sanofi | Rs 6351 | Rs 6425 |
| SUN TV | Rs 417 | Rs 419.90 |
| Sundaram Fasteners | Rs 673 | Rs 701 |
Should you buy these stocks at 52-week lows?
Some stocks have no track record of paying dividends, which is crucial before buying the stock of a company. A classic case is PAYTM. We recommend buying stocks at 52-week lows, only if there is a dividend paying track record over the years. Apart from that if the company is debt free it is even better, as interest rates are rising. So, under this category, we find SUN TV, which is debt free and the dividend yields around that 2% mark.
Apart from this look at a stock at Sanofi. The dividend from this multinational pharma company is awesome. In fact, it is more than 7%. However, that may have been because of an extra ordinary income from sale. But, even if you take the regular dividend declared from profits, the dividend yields should be in the range of 5 to 6%, which makes the stock of Sanofi India a good buy.
ICICI Securities and Amara Raja Batteries stocks maybe good stocks to buy
ICICI Securities from the above list looks a good bet as stock brokerage firms, will likely do well on account of the under penetrated stock market investment in India. The stock is also available with a dividend of Rs 12.75 per share. Based on the dividends of FY 20-21, the stock is trading at a dividend yield of more than 4%, which is not bad. Amara Raja Batteries too is a good bet, given that the stock is under valued. The company's Amaron range of batteries is a market leader and we believe that the stock has the potential to trend higher. However, the only worry for the stock is the rising input costs. Amara Raja Batteries is the top led battery manufacturer in the country. Overall, with a p/e of 14 times, the stock looks an interesting pick. Overall, we believe that the markets could be volatile and though these stocks have fallen to 52-week lows. There is a possibility of further downside in some of the stocks. Some stocks like Nestle are good to buy, but, the problem is that the company like most others from its space is plagued by high input costs. Stocks like ICICI Securities are also good stock picks, because there are no worries over inputs costs, as these are pure service players. So, in the end we like the stocks of Sanofi, Sun TV and ICICI Securities from the list of stocks to buy, that have hit 52-week lows.
