3 Beaten Down Shares That Can Yield Good Returns

Markets are at a historic high and the economy is into a downtrend. At such a time it would be good to adopt a bottoms-up approach to investing. Here are three stocks that can fetch good returns and are trading at near 52-week lows.

TV Today

TV Today runs the four 24 hours News & Current Affairs channels, namely Aaj Tak, Dilli Aaj Tak and Tez in Hindi and India Today in English. The Company also operates three radio stations under brand ISHQ 104.8 FM in Delhi, Mumbai and Kolkata.

The shares of the company have been hammered down from levels of near Rs 400 to the current levels of Rs 258. For the quarter ending Sept 30, 2019, the company reported a disappointing set of numbers .

Net profits dipped from Rs 28.46 crores in the quarter ending Sept 30, 2018 to Rs 23.69 crores in the quarter ending Sept 30, 2019. Advertisements have been hit on account of the economic downturn.

We expect with a pick-up in the economy the company would continue to do well. Expect an EPS of Rs 20 for 2020-21, which discounts the shares around 12 times.

GAIL

This stock at Rs 117, is at a new 52-week low. The shares are available at a good dividend yield of around 4-6 per cent. The possibility of the next dividend being declared in the month of Feb is not ruled out.

The shares are now trading way below its 52-week low of Rs 183, which was hit in March earlier this year. The company is a leader in natural gas pipeline, city gas distribution, petrochemicals etc. Its value in some subsidiaries and associate companies itself like Mahangar Gas and Indraprashtha Gas make the company a value proposition.

It is unlikely that we will see too much of a decline in the stock price of the GAIL from the current levels. A good buy for a holding time frame of 1-2 years.

Coal India

This is another stock that can be bought purely for the sake of its dividend yields. The company tends to declare dividends in the month of Feb every year. The dividend could range from Rs 10 to Rs 15 per share.

This would take the yield on the stock anywhere between 6 and 7.2 per cent.

Dividends up to Rs 10 lakhs being tax free is another big advantage. This is a good stock to buy for the long to medium term.

The company is also a cash rich debt free company, and also one of the largest coal mining companies in India.

Like other stock mentioned above, the shares are very close to its 52-week low of Rs 178. In fact, the stock is now trading at Rs 191, and if it falls further around Rs 185, it would be a good pick at those levels.

Disclaimer

This article is strictly for informational purposes only. It is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author of this article do not accept culpability for losses and/or damages arising based on information in this article.