It's a time when bears are firmly in control of the markets. The Sensex and Nifty have fallen sharply through almost the entire week. The stocks is available at a dividend yield of 3% and a trailing p/e of about 10 times.
Here are a list of 8 stocks that have fallen more than 40% from 52-week highs
|Stock name||Current market price||% fall from 52-week highs|
|Gulf Oil Lubricants||390||-47.65%|
Buy Finolex Industries and Bajaj Consumer shares
From the above list we like the stocks of Finloex Industries and Bajaj Consumer shares. Finolex Industries is a leading player in the PVC pipes & fittings, manufacturing of PVC resin and power generation. The stock is available at a dividend yield of 3% and a trailing p/e of about 10 times. With economic growth likely to gather momentum, we see further upside in the stock of the company. Bajaj Consumer shares are again attractively valued with limited downside risk. After a spectacular fall from levels of more than Rs 300, the stock is now available at an attractive p/e of 10 times and a dividend of yield of more than 5.54%. Both these companies have a good track record of paying dividends and a sharp fall in their share price, allows investors to buy the shares at lower prices. For both of these stocks the only concern would be rising input costs, particularly for Finolex Industries.
Buy Mahanagar Gas and Gulf Oil Lubricants shares
Shares in Mahanagar Gas have fallen a solid 41% from 52-week highs. One of the prime reasons for the same is that there has been a solid increase in gas prices. The company supplies piped gas in regions of Maharashtra and any increase in costs tend to impact the company. Domestically produced Natural Gas has been increased by 110% by the Government of India with effect from 01st April 2022. Having said that Mahanagar Gas also increase the prices of Compressed Natural Gas (CNG) by Rs 5.00/Kg and Domestic Piped Natural Gas (PNG) by Rs 4.50/ SCM in and around Mumbai, effective from midnight of April 12, 2022 / early morning of April 13, 2022. This may help margins to at least recover somewhat, if not completely. The shares are now trading at an attractive p/e of 12 times, after the fall. However, one will have to keep an eye and see how margins sustain for the company in the more monger-term. The other share that we believe is worth buying is Gulf Oil Lubricants. The company is a leading player in the oil lubricants segments in India. The shares after the dramatic fall is now trading at less than 10 times p/e. In fact, Gulf Oil Lubricants also had a buy back of shares at Rs 600 and considering that the shares are very lucrative to buy at Rs 388. The dividend yield on the stock is now more than 4%.
Accumulate Lux Industries and ICICI Securities share
Lux Industries is a good share to buy on declines. The company is a leading player in the innerwear and knitwear business, under the brand name Lux. The shares have fallen a solid 56%, which makes the stock an interesting play with a p/e of around 15 times. A stock like ICICI Securities is also good to buy on account of its reasonable valuations of around 11 times p/e. Apart from this, the stock also gives a good dividend yield of more than 4%. The number of investors in the stock markets is rising and ICICI Securities would be one of the beneficiaries of a growing number of investors. We believe that the stock is very reasonably priced at the current levels and is worth buying.