3 Stocks from The Nifty that Have Not Performed, Buy Them On Declines

It's been largely a market where banking stocks have led gainers. ICICI Bank in particular has been on a roll, along with State Bank of India in the last few quarters. There are a few stocks that continue to languish without any significant gains. Some of them have gone up and fallen back again. Here are a few of these stocks which you could buy on declines.

ITC

For some reason this stock has remained a big under performer. The stock is in fact available at a dividend yield of close 5%. It recently spiked to Rs 265 and has fallen back to Rs 220. There is no doubt that the company is a solid player from tobacco to hotels to FMCG.

In fact, in the FMCG space it has developed extremely renowned brands like Ashirvaad, Bingo, Vivel, Fioma etc. However, for some reason markets do not give it the discounting that it deserves. There was a time when we would see the likes of Reliance Industries struggle to gain, but, has now become a favorite of fund managers. We don't know whether and when it could happen in the case of ITC. However, should the stock fall a little more, it could be a good buy.

Bajaj Auto Ltd

Over the last few months, we have seen the stock roll back from 52-week highs of Rs 4300 to the current market price of Rs 3339. The stock is now just 10% away from 52-week lows of Rs 3,000. At this price the stock is good for dividends as well. Fundamentally, the company is well placed given its strong cash position, and a focus on exports. With a price to earnings ratio near the 15 mark, the stock is not expensive for a company that is a leader in its field. The growth maybe a little subdued, if the third wave of Covid plays out. However, in the more longer term, the stock is a great bet. In fact, even if it achieves its 52-week high, investors are looking at returns of 25 to 30%.

BPCL

This has been another laggard, even as we have see the Sensex once again cross the 60,000 points mark. The shares have dipped from levels of Rs 506 to Rs 391. The biggest trigger for the stock would be the government's move of selling its stake. However, the process has been going on for sometime now and one is not sure whether the divestment would happen anytime soon. Unless, some news on this front comes out, we are unlikely to see the stock on fire anytime soon. The company also recently declared a hefty dividend of Rs 58 per share, which led to some massive cash outflow. If you ask us whether BPCL remains a good stock to buy, the answer would depend on whether there are any takers for the privatisation process. We would prefer stocks like Bajaj Auto and ITC to buy over BPCL.

Disclaimer

We wish to inform readers that investing in stocks is risky, especially when the markets are at 60,000 points on the Sensex. Please do exercise caution. Neither the author, nor Greynium