3 Tata Group Stocks To Buy That Are Very Close To 52-Week Lows

Markets are more or less trading in a range for the last couple of weeks. Global markets have seen some recovery as fears of faster than expected interest rates ease. Here are 3 Tata Group stocks to buy that are very close to their 52-week lows.

Rallis India

Current market price	52-week low	Per cent away from 52-week low
Rs 200	Rs 194	3%

Rallis India is a part of the Tata Group and engaged in the manufacture of agro chemicals and pesticides. The company has established a presence across the value chain, with a healthy pipeline of sustainable products and services.

Rallis India offers crop care solutions, including formulations for crop protection and nutrition. It manufactures and markets a range of agri-inputs, which include pesticides, fungicides, insecticides, seeds, and plant growth nutrients. The last few quarters have seen the company report a very subdued performance, which is one reason the shares of the company are languishing. The company reported an EPS of Rs 8.44 for the year ending March 31, 2022. The stock is trading near 25 times p/e. However, we expect significant improvement in performance in FY 2022-23, given good monsoon and the government's thrust on farmer income. Recently, Anand Rathi set a price target of Rs 320 on the stock seeing improved performance this year and has a buy call on Rallis India. The company also declared a dividend of Rs 3 per share as well.

Tata Steel Long Products

52-week high	1173
52-week low	600
Current market price	657
% from 52-week low	-8.68

The stock is probably one of the cheapest stocks from the metal space. The company reported an EPS of Rs 210 for FY 2021-22, taking the price to earnings to slightly more than 3 times. Having said that one must also note that FY 2021-22 was a superb year for metal stocks on the back of rising metal prices. We have seen that metal prices are subdued right now and this may have an impact on earnings. Having said that we still believe that the stock is very undervalued at this juncture. This is a good Tata Group stock, where the promoter group hold more than 74% stake. The company has also declared a very healthy dividend of Rs 12.5 per share. Overall, we believe that the stock is undervalued, has good dividend yields, high promoter holdings and decent demand, which should see the company continue to perform well over a period of time.

Tata Communications

The company has solid infrastructure, that drive the intelligence powered by cloud, mobility, IoT, collaboration, security and network services. About 30% of the global internet routes are carried by the company. About 80% Cloud giants are connected to their businesses through Tata Communications. Profit for the quarter ending March 31, 2022 was Rs 395 crore as compared to Rs 309 crore in the last year, witnessing a 28% growth on the back of lower operating cost and taxes. Overall, we believe as revenue from voice services remain subdued, data services would contribute. Based on its trailing EPS, the stock is available at a price to earnings ratio of 23 times, which is not bad at all. We believe the stock has the potential to rally from current levels and hence is a good buy at the current levels.

52-week high	1591
52-week low	906
Current market price	955
% from 52-week low	-5.13

Disclaimer

Investors are advised caution as the markets have become exceedingly volatile. Neither Greynium Information Technologies, nor the author, would be responsible for any losses based on a decision reading the above article. Every effort has been made to provide accurate information and readers should understand the inherent risks before investing in the markets. The author and his family do not own shares of the above mentioned companies.