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3 Bluechip Stocks To Buy For Long-Term That Today Hit 52-week Lows
With tensions mounting between Russia and Ukraine and fears of an impending invasion by Russia, stock markets across the globe have collapsed. In 2-trading sessions the Sensex has lost almost 2,500 points. Here are stocks that have dropped to 52-week lows and are good picks at the current levels.
HDFC
This stock has now dropped to a 52-week low of Rs 2290 and was last seen trading at Rs 2295. The stock has seen a drop on persistent selling by Foreign Portfolio Investors, who hold a large chunk of shares in the company. With interest rates in the US likely to edge higher, many FPIs are selling Indian stocks and since their large holdings are in HDFC, the stock is bearing the brunt.
Interestingly, the stock had hit a 52-week high of more than Rs 3000 and has now fallen substantially. We believe that the stock is under priced at the current levels considering that it has substantial holdings in HDFC Bank, HDFC Ergo, HDFC Life and HDFC Mutual Fund.
In fact, some analysts peg the value of its holdings worth more than Rs 1,000 per share. Buy the stock for its cheap valuations, strong pedigree and holdings in other HDFC institutions.
Amara Raja Batteries
This is another stock that dived to a 52-week low of Rs 574. The stock has now dropped from levels of Rs 1000, which was the 52-week high to the current levels.
The company is the largest lead battery manufacturer in the country, with a strong brand in Amaron. Amara Raja Batteries stock has been hit on account of rising input costs. Recently, the company saw its profitability drop 25% to Rs 145 crores in the quarter ending Dec 31, 2021. Broking firm Anand Rathi has set a price target of Rs 903 on the stock and has recommended a buy on the stock of Amara Raja Batteries for long term investors.
The brokerage expects strong volume growth on the rebound in industrial activity and supply constraints for auto OEMs easing in the near term.
Cochin Shipyard
This stock like several others has fallen to 52-week lows of Rs 312. The stock is available at a dividend of Rs 7 per share for which the ex date of Feb 21. Another high quality bluechip stock, where the dividend yields are near 5%.
Cochin Shipyard is a majority Government of Indian owned entity. The company has a modern shipbuilding yard in India, for building and repair of ships. The stock in terms of valuations is also very cheap considering a price to book value of 1 and a price to earnings ration of just 8 times.
Buy the stock for the long-term for its dividend yield, and attractive valuations.
Disclaimer
Investing in stocks is risky and investors should do their own research before investing. The author and Greynium Information Technologies are not responsible for any losses incurred due to a decision based on the above article. Investors should also exercise due caution as markets are extremely volatile due to geo-political tensions and rising interest rates.
