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3 Nifty Stocks To Buy With Zero Debt, High Dividend Yield & Low P/E

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With the Sensex back at the 61,000 points mark, most investors find it hard to find value. Even brokerage reports recommend the same set of stocks that are overvalued. We have found some stocks that offer value with good dividend and low price to earnings.

 

HeroMoto Corp

HeroMoto Corp

52-week high priceCurrent market price
Rs 3628Rs 2566

If you see the stock of HeroMoto Corp, the same has fallen from 52-week highs of Rs 3628 to Rs 2566. This is one reason we are recommending the stock, given the fall, which makes it attractive now then before. The company has recently increased its stake in Ather Energy, makers of Ather Electric scooters.

Apart from this, the stock is available at a dividend yield of more than 4%, which makes it a good pick at the current levels. HeroMoto Corp stock is also available at a price to earnings of just 15 times, one year forward earnings. If you compare the same to Sensex stocks, the average p/e of Sensex stocks, based on 1-year forward earnings is 22 times.

Debt free status, strong dividend yield and low p/e, all make the stock attractive to buy at the current levels.

ITC
 

ITC

52-week high priceCurrent market price
Rs 265Rs 222

This is a Nifty stock that has been truly stuck even as the stock markets are rallying. The company makes everything from paper, to FMCG and has good presence in hotels as well.

With brands like Aashirvaad Atta, Sunfeast Biscuits, Bingo Chips, Vivel Soaps, Fiama Soaps, Savlon and Yippee! Noodles etc., ITC has an enviable list of brands.

While the brands are good the stock has been going nowhere for many years now. The Sensex has surged, while the ITC stock has languished. However, our own belief is that at some stage investors will start examining the company afresh.

The shares of ITC are available with a dividend yield of more than 5%, which makes it an attractive bet at the current levels. The company is also virtually debt free.

Bajaj Auto

Bajaj Auto

52-week high priceCurrent market price
Rs 4361Rs 3461

This is another stock that is available at a dividend yield of more than 4%. The company is not only debt free has cash and cash equivalents on its books to the tune of Rs 17,000 crores. The price to earnings for the company based on 1-year forward earnings is 15 times, which one again is way below the Sensex companies average of 21 times. So broadly speaking the stock has the potential to rally. The management track record over the years has been superb.

One of the other reasons to be buying the stock of Bajaj Auto is the fact that the stock has fallen from levels of Rs 4361 to Rs 3461, thus offering a good opportunity.

Disclaimer

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 now own any shares mentioned above.

Read more about: nifty stocks to buy bajaj auto
Story first published: Saturday, January 15, 2022, 8:58 [IST]
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