5 Quality Stocks Stuck At 52-week Lows, Should You Buy Them?

Markets have been buoyant in the last few trading sessions, thanks to renewed buying from Foreign Portfolio Investors. However, despite the strength, here are a list of good quality stocks that have fallen to 52-week lows.

Stocks at 52-week lows

Company name	52-Week high	52-week low
Medplus	1343	690
Krsnaa Diagnostics	1099	463
Alembic Pharma	863	651
Asian Star	1086	673
Kothari Fermentation	94	59

Should you buy these stocks?

The answer is no. Medplus is still over valued, even though the stock has nearly halved. Krsnaa Diagnostics after the fall in price is available at a p/e of 22 times, which is neither cheap nor very expensive. We believe that given the valuations of Krsnaa Diagnostics, there is a potential of an upside rally. The problem right now for the diagnostic centres is that with covid fast receding, revenues could have been impacted and this has had a telling influence on the price as well.

Overall market makes stock markets expensive

The recent rally in stock prices has made stocks expensive. However, some of the stocks mentioned above, especially those catering to the healthcare space maybe good picks, but, if the markets fall, these stocks too could see a downside as well. Hence, buying into some of these stocks at lower levels makes sense.

Positive momentum of the market maybe sustained

Softened US inflation data boosted investor sentiments and led to hope that the US Fed might taper down its aggression and raise interest rates at a slower pace than previously expected. "Commodity costs have corrected over the last few weeks, offering some respite to the record high inflation. Even India's inflation data is due on tomorrow (Friday) which would be eyed eagerly amidst better US inflation data. The benefit of the recent moderation in commodity costs is likely to start accruing in 2HFY23E, which would boost corporate profitability. Thus the positive momentum in the market is likely to sustain going ahead, though bouts of volatility can't be ruled out given mixed global cues and increasing geopolitical tensions," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd says.