Midcap and small cap stocks have fallen in line with the markets. While several Nifty stocks have fallen to 52-week lows, so have small and midcap stocks. Here are a list of 8 mid and small cap stocks, which have dropped to 52-week lows, should you buy, sell or hold these stocks.
List of mid and small cap stocks at 52-week lows
|Name of company||Current market price||52-week low price|
|Aurobindo Pharma||Rs 530||Rs 522.85|
|Emami||Rs 414||Rs 406|
|Finloex Cables||Rs 345||Rs 343.50|
|HPCL||Rs 240||Rs 237|
|Kalyani Forge||Rs 168||Rs 161.90|
|Lal Pathological||Rs 1903||Rs 1908|
|Metropolis Heathcare||Rs 1674||Rs 1775|
|Oracle Financial Services||Rs 3080||Rs 3092|
Should you buy the stocks of Aurobindo Pharma, Emami and Finolex Cables?
We would suggest a hold on the stocks of Aurobindo and Emami. The problem for the latter, like all companies in the FMCG business is margin squeeze due to rising input costs. The next few quarters are quarters that are likely to most certainly be reflected in poor margins for Emami unless there is a price hike. Finolex Cables is a good stock to buy as the shares give a dividend yield of 2% and we forsee the possibility of a growing market. With housing and telecom likely to witness a continued growth, demand for electrical cables and telecom cables is bound to rise. The stock is also trading at a p/e of 13.56 times its trailing EPS. The price to book for the stock is also reasonable at around that 1.73 mark. Aurobindo Pharma is a stock to accumulate as we believe the valuations are attractive for the company. Apart from this, the number of ANDA filings is also pretty high for the company.
Buy the stock of Oracle Financial Services
The one reason to buy the stock of Oracle Financial Services is the dividend yield on the stock of near 6%. Apart from this the stock is trading at a p/e of just 14 times, one year forward earnings and is a subsidiary of Oracle Inc, USA. The company is into the business of banking and insurance software. As far as Metropolis Healthcare and Dr Lal's Pathological Labs is concerned, we would suggest a sell on both the stocks. The shares are highly valued and the price to earnings ratio looks a little exaggerated. While there could be growth in the stocks, we believe that there is a price to pay. You cannot be paying such very hefty premiums for growth.
Buy HPCL, Hold Kalyani Forge stock
We would suggest a buy on the stock of HPCL. The company's dividend yield itself works to around 9%. The company has once again declared a dividend of Rs 14 per share. We believe that as interest rates rise across the globe and inflation soars, there could be some sort of slowdown in the global economy. When this happens crude is likely to stay lower for longer. Already, there are talks of US slipping into a recession. If this happens and crude stays lower for longer, one of the beneficiaries would be HPCL. The stock has fallen from 52-week highs of Rs 340 to the current price of Rs 240. There is a dividend of Rs 14 per share, which means the cost of acquisition falls further to Rs 226. We suggest a hold on the stock of Kalyani Forge. Overall, we wish to caution readers that if the markets fall, the stocks recommended above could fall in line with the markets. Therefore, it is advisable to buy in small quantities. Also, buy on dips, we believe that stocks could also be headed lower.