4 High Quality MNC Stocks That Are Near 52-week Lows, Should you Buy?

Stocks have fallen a great deal in the last few weeks. Even though the indices have managed to stay near the 58,000 points mark, we are seeing many stocks from the broader markets simply falling. Here are a few MNC stocks that have plunged to near 52-week lows.

Castrol India

The shares of Castrol India have dropped to levels of Rs 115.95, as against the 52-week low price of Rs 112. The stock at the current market price becomes an attractive buy. The stock is now available with a dividend yield of nearly 5% and a price to earnings ratio of just 12 times.

The company is one of the top lubricants players in the country with a strong brand. With demand likely to continue to rise, following the opening of lockdowns, we believe it would be a good time to accumulate a stock like Castrol India.

Colgate Palmolive

Another MNC stock that has fallen sharply in the last few days, is the stock of Colgate Palmolive. The shares are trading at Rs 1410, as against the 52-week low price of Rs 1375.

The problem for the company has been that inputs costs have gone higher and there is a possibility of margins squeezing in the coming quarters. That having said, there is also fierce competition in the toothpaste market.

However, the company has a good brand and is also among the top players in the industry. One can buy the stock in small quantities to add to the portfolio. The stock of Colgate Palmolive India had a 52-week high price of Rs 1823.

Honeywell Automation India

Honeywell Automation India Ltd is a market leader in Electronics-Instrumentation and Process Control equipment industry. The stock of the company like Colgate and Castrol is a multinational company, with a majority of the shares being owned by Honeywell Asia Pacific Inc.

The shares of the company are just 6% away from their 52-week lows and are now trading at Rs 40,165, as against the 52-week low price of Rs 38,130. This means the stock is trading just 6% above the 52-week low.

The reasons for the fall in the stock are not known. We neither recommend a buy nor a sell on the stock and are pretty much neutral on the stock.

Hindustan Unilever

This is a bluechip multinational stock, with brands that include Surf, Pepsodent, Lipton, Rin, Kissan, Rexona, Kwality Walls, Dove, Close-up etc.

The shares of the company were last seen trading at Rs 2310, as against the 52-week low price of Rs 2120.

In fact, the shares of the company have hit a 52-week high of Rs 2859.

Like some of the other FMCG stocks, the company has been hit hard by rising raw material costs. We suggest buying the stock in small quantities at the current market price. The company has a consistent track record of growing revenues and profitability over the years and that is unlikely to change. From a holding period of 3 to 5 years, the stock should definitely churn out good returns for the slightly long-term shareholders.