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3 Bluechip MNC Stocks Near 52-week Lows, Should You Buy Them?
Multinational Company stocks have seen a sharp dip in their share prices over the last few months. In fact, there are many that are nearer their 52-week lows, but, we are just taking three of them for analysis. Here are 3 MNC stocks and we tell you whether they look attractive to buy.
Gillette India
| Current market price | 52-week low | 52-week high |
|---|---|---|
| Rs 5240 | Rs 5202 | Rs 6275 |
This company as we all know is in the business of manufacturing Blades and Razors, Oral care and Portable Power. The stock of Gillette India is very close to its 52-week low price. The unique problem that Gillette India faces is that men these days are not interested in shaving and do keep a beard. This impacts the sales of the company directly as demand remains subdued. The stock of Gillette India is available at a dividend yield of 1.37%, which is not great.
Also, the price to earnings multiples is too high at around 50 times, which does not make the shares attractive. There are better MNC stocks that investors can buy.
Castrol India
| Current market price | 52-week low | 52-week high |
|---|---|---|
| Rs 124 | Rs 117 | Rs 154 |
This is a subsidiary of Castrol UK and a leading player in automotive and industrial lubricants. The company is an attractive MNC stock to buy at the curRent levels. The dividend yield on the stock itself works to around the 4.4% at the current market price of Rs 124, which should protect any sharp downside on the stock.
Castrol India reported pretty decent numbers for the quarter ending June 2021 and for the half year, the EPS almost translated to Rs 3.88, in a covid induced period. We believe that the company is capable of reporting an EPS of Rs 10 in 2022, which should take the p/e at current market price to 12.4. This is not expensive at all for a MNC stock that has low debt, decent cash flows and good dividend yields. Castrol India is a good stock to buy around the 120 levels.
Whirlpool of India
Whirlpool of India is a top player in the home appliances business and produces refrigerators, microwaves, washing machines, air conditioners etc. For the quarter ending Sept 30, 2021, the company reported an EPS of Rs 6.19. Based on this quarterly number even if you assume a very optimistic performance for FY 2022-23 and an EPS of Rs 30, the stock is trading at a p/e of 60 times. This is simply too expensive for a company that is unlikely to churn out whopping growth rates.
Rising input costs and fierce competition are always going to be trouble some areas for the company. We believe that amongst the shares that we mentioned Castrol India is best placed in terms of valuations and dividend yields. We suggest investors to hence buy the same and avoid buying the stocks of Whirlpool of India and Gillette India.
Disclaimer
Greynium Information Technologies and the author are not liable for any losses caused as a result of decisions based on the article. Investing in equities is risky. The author and his family do not own any shares mentioned above.
