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3 Quality Stocks That Have Fallen To 52-Week Lows. Should You Buy?

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Benchmark indices, the Nifty and the Sensex have slumped by more than 8% as the omicron variant of the virus is creating panic among investors. Here are a few quality stocks that have fallen to 52-week lows.

 

Lupin Ltd

Lupin Ltd

52-week lowRs 856
Current market priceRs 860
52-week highRs 1267

Lupin on Monday closed very near the 52-week low of Rs 856. The stock has slumped like many pharma companies, where investors have moved away from the defensive stories to economy related stocks like banks and commodities. With the omicron virus now spreading faster than ever before, there is a high possibility that investors move back to defensives. This could well push the stock price or at least provide some support to the stock price. Lupin is among the top pharma countries that exports to the US and any favourable price benefits could see a good performance from the company. One can buy the stock of Lupin at these levels.

Strides Pharma
 

Strides Pharma

52-week lowRs 469
Current market priceRs 472
52-week highRs 999

This is a stock that has slumped to more than half from its 52-week high. The shares have lost heavy ground like Lupin. The company has 130 Cumulative ANDAs filed (30 pending approval). The company also has 8 world-class manufacturing facilities with a net debt to equity ratio of 0.46.

This again like Lupin, should there be a recovery in margins and also if investors start playing the defensive theme all over again may see substantial traction. The problem for some of the pharma companies is their dividend yields are not too great and some of them keep getting US FDA warnings. Buy the stock of Strides Pharma if you want to diversify your portfolio with defensives.

City Union Bank

City Union Bank

52-week lowRs 142.15
Current market priceRs 142.85
52-week highRs 189

We don't like banking stocks at the moment. Most of them have heavily run-up on hopes of a robust economic recovery and all of them are over priced. We suggest that investors stay away from the markets itself, as the stock markets themselves look over priced. Buying into defensives like pharma is a better bet, than buying into banking stocks.

Disclaimer

Disclaimer

Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies Pvt Ltd and the author are not liable for any losses caused as a result of decisions based on the article.

Story first published: Monday, December 6, 2021, 17:45 [IST]
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