4 Nifty Shares To Buy That Have Fallen More Than 30% From 52-Week Highs

Nifty stocks have fallen a great deal over the last few weeks, thanks to rising interest rates in the US. Here are 4 Nifty shares to buy that have fallen more than 30% from 52-week highs.

Housing Development Finance Corporation

This stock has seen relentless selling pressure from Foreign Portfolio Investors. The stock of HDFC has fallen from levels of Rs 3021 to the current market price of Rs 2156, which is a drop of 30%. The shares are attractive to buy on account of the reasonable valuations. The share are available with a dividend as well of Rs 30 per share. The merger with HDFC Bank is likely to result in value for shareholders, though the merger is likely to take at least a year to fructify. The shares are trading very cheap given the fact that HDFC hareholding in HDFC Life, HDFC Bank, HDFC Asset management etc., is worth more than Rs 1200 per share. This means the core business is barely trading at a p/e of 10 to 12 times. Should the markets fall, there is a possibility that the shares of HDFC also would, but, then when FPIs returns we could see the stock being amongst the first to rally. Buy the shares from a long-term perspective.

Wipro

Recently, a leading broking firm had a buy call on the stock of Wipro with a price target of Rs 670 on the stock. When compared to larger peers like Infosys and TCS, the valuations of the shares of Wipro are much lower in terms of price to earnings ratio. The stock has a trailing p/e of 20 times. Though the stock of Infosys, is much better in terms of Dividend yields of 2%.

We believe that the sharp drop in the price of Wipro, in line with other companies, makes the stock attractive at the current levels. If you are a long-term investor, it makes sense to buy into the shares of the company.

Hdfc Life

This is another group company that has seen a nearly 30% plunge in stock value from 52-week highs of Rs 776 to the current price of Rs 555. The company is into the life insurance business and has performed reasonably well in the quarter gone by.

HDFC Life reported a 11.4% increase in its net premium to Rs 14,290 crores. The institution also reported a 12.4% increase in profit after tax to Rs 357.52 crores, as compared to Rs 317.94 crores in the previous fiscal. The board has also declared a final dividend of Rs. 1.70/- per share of face value of Rs. 10/- each for the financial year 2021-22. The record date for the same has been fixed at June 1, 2022. We believe that the growth momentum in HDFC Life would continue given the under penetrated condition of the life insurance sector in India. After the near 30% fall in the stock price, the shares are also in expensive.

Bajaj Auto

The shares of Bajaj Auto have not fallen 30% currently, but, more like 20% from 52-week highs. However, we are making a mention of Bajaj Auto, because the stock at Rs 3496 is currently available with a dividend of Rs 140 per share. Post the fall after the dividend the stock would be at an acquisition of Rs 3350 or thereabouts making the shares attractive. We believe that the 2-wheeler markets would recover and the company is likely to pass on the rise in input costs to consumers. The shares have hit a 52-week high of Rs 4347 are now available at a price of Rs 3496. For long-term investors the shares are available at a p/e of 18 times, which is not too expensive. However, if the markets decline there is a possibility of the stock to falling in tandem.