The only way to take money in the markets is to "buy low and sell high". While the markets maybe at a new peak, it would be interesting to look at stocks that are very close to their 52-week lows.
Shares of Maruti have dived from levels of Rs 10,000 to the current levels of Rs 7,000. The shares have largely fallen on account of worries over slowdown in sales.
However, it is time to be a little more optimistic on the company. It is largely anticipated that the completion of the election would see volume growth pick-up once again. Also, following the steep drop in prices, the shares are not very expensive at the current levels.
The stock maybe a good pick at around levels of Rs 6,900.
This is another auto stock that has been hammered down on account of lower volume growth. The shares have fallen from levels of Rs 3,900 to the current levels of Rs 2,600.
It is hoped that rural demand would pick, following the various initiatives by the government to bolster rural income.
The dividend yield on the stock of HeroMotor Corp is more than 3 per cent, which is not bad at all.
HeroMotor Corp is one of the largest two wheeler manufactures in the country, with a solid network and strong brand equity. The stock is available at a reasonable p/e of 15 times, which makes it attractive at the current levels
Other Contrarian bets
Metal stocks have fallen substantially in the last few months on account of worrying demand and slower growth. Some of the stocks like NMDC and Coal India maybe good picks for their dividend yields, which could be in the range of 4 to 7 per cent.
The downside risk from some of these stocks is limited. However, do exercise some caution, given that the election results are slated in the new few weeks and also the fact that crude has been rising.
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