As we end 2021, we see select pharma stocks languishing along with some FMCG stocks. The larger banking names from the Nifty like ICICI Bank and HDFC Bank have done well. Banking in general has done well, including the stock of SBI.
Take a look at some of the laggards
Some of the popular stocks that are laggards and are in fact very close to their 52-week lows include renowned named like Britannia, Aurobindo Pharma, Amara Raja Batteries, LIC Housing Finance etc. Names like Lupin, L&T Finance Holdings are all stocks that are closer to 52-week lows and have been rank under performers in the last few quarters.
Should you buy these stocks that are laggards?
Well, you have to really differentiate and see if some of these stocks could do well in the future. Amongst the list we like Amara Raja Batteries. The stock had fallen from levels of Rs 1025 to the current levels of Rs 623. The company is gearing up to provide its range of products for electric vehicles and the company is a leader in lead acid batteries, with a very dominant share in the replacement market as well as the OEM market.
Another stock that could be a good buy and has been a laggard is Gulf Oil. In fact, the shares are stuck at almost the 52-week lows. Again, the stock is available at a price to earnings multiple of less than 10 times, one year forward earnings. It is a leader in the lubricants business and has now begun expanding into lubricants for e vehicles. It has also tied up with the division of L&T for supplying lubricants.
Buy the stock of Bajaj Consumer Care
Bajaj Consumer Care is another stock that we like. The company is virtually debt free, has strong brands like Bajaj Almond, Bajaj Amla etc. The dividend yield on the stock itself is around that 4 to 5% range. The shares have dropped from levels of Rs 324 plus to the current levels of Rs 199.
We like the stock at these levels. So, in short stocks like Bajaj Consumer Care, Amara Raja Batteries and Gulf Oil maybe good stocks to buy at the current levels. Overall, markets are expected to consolidate at these levels. Investors with money can look to buy stocks with a proven track record, strong brands, good dividends and free cash flow.
Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.