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3 Blue Chip Stocks At 52-Week Lows; Should You Buy Them?


Benchmark indices crashed by near 2 per cent on Monday, as worries over China and P Notes spooked investors. In the sell-off several blue chip stocks have crashed to 52-week lows. Are they buying opportunities or should you wait for a further fall? Take a look.


Tata Motors

On Monday the shares of Tata Motors crashed to a 52-week low of Rs 373. The stock has now fallen from a high of Rs 606 seen on Feb 3.

3 Blue Chip Stocks At 52-Week Lows; Should You Buy Them?
Tata Motors: Quotes, News
BSE 299.05BSE Quote9.45 (-3.16%)
NSE 298.95NSE Quote9.65 (-3.23%)
ACC: Quotes, News
BSE 2326.60BSE Quote67.75 (-2.91%)
NSE 2325.95NSE Quote68.9 (-2.96%)
The problem for the Tata Motors stock is that investors directly link the stock to developments in China. When the Chinese markets crash Tata Motors follows.

On Monday when the Shanghai Composite fell 8.3 per cent, Tata Motors stock crashed to a 52-week low. The biggest market for Tata Motors' Jaguar Land Rover is China. Negative developments in China tend to affect the share price negatively. Whether that is sensible and logical is a different question altogether.

But, many analysts suggest that Tata Motors maybe a good buy due to the sharp erosion in its share price, particularly since other auto shares like Maruti are no longer cheaper. One can start nibbling into the stock on declines. Check Tata Motors Financials and stock chart


ACC is one more stock that hit a 52-week low. The company recently reported its quarterly numbers and according to the same it reported an EPS of Rs 7. Even if we thus assume the company reports a full year EPS of Rs 28, the price to earnings ratio works out to almost 50 times at the current market price of Rs 1369.

The share seems to be overpriced at the current levels and is best avoided. Check ACC share price and financials



Metals and mining major Vedanta has been sliding in the last few weeks and the onslaught continues. The problem for Vedanta is commodity prices just do not seem to stop falling. As they keep falling the shares keep sliding. Check Vedanta share price

Also, there are reports that the Cairn Energy will vote against the Vedanta Cairn India merger. While this is good news for Cairn India it is certainly not good news for Vedanta.

Metal stocks like Tata Steel and Jindal Steel have also hit their 52-week lows as commodity prices continue to be lower. There is little hopes of the scenario improving, which is why there could be some more down slide in the stock of Vedanta.

Buying the shares of Vedanta even at lower levels is considerably risky. It's therefore best if the share is avoided.

Story first published: Tuesday, July 28, 2015, 8:55 [IST]
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