Top 3 Metal Stocks Touching Their 52-Week Low, Here Is Why?

The stocks of leading metal companies such as Steel Authority of India Ltd., Tata Steel Ltd, Hindalco Industries Ltd. fell over 2 percent in today's trading. Meanwhile, Sensex also tanked over 1000 points to end the day at 54,303 while Nifty ended at 16,201 with a loss of 276 points. The stock of Tata Steel fell nearly 2.02%, Hindalco Industries stock tumbled almost 3.50%, and SAIL's stock dipped 233% in today's trade. All three metal stock has witnessed a correction of 25-35 % in three months.

According to experts, the prices of steel stocks and metal stocks may witness some decline as the central government has imposed an excise duty on 11 iron and steel intermediaries along with key steel products. A large number of exports of steel and stainless steel will now attract 15% export duty.

Below are three metal stocks that witnessed a sharp fall today:

1. Tata Steel Ltd.

The stock of Tata Steel Ltd. tanked more than 2% in today's trading. The current market price of the stock is Rs 1023.70 apiece. In three months, the stock has given a negative return of over 21%, in six months the stock has given a negative return of 13.25% and in 1-year it has given a negative return of 8.14%. However, the stock has given a positive return of 101.36% in 5 years.

The stock has climbed the 52-week high of Rs 1,534 apiece and 52-week low of Rs 991.80. With today's correction of over 2%, the stock is now just 3.13% away from its 52-week low.

The market capitalization of Tata Steel is Rs 1,25,048 crore. As the stock is falling from its high levels, investors can also think of investing in the stock as brokers have upgraded their recommendations for the stock. The P/E of Tata Steel is 2.47 which is lower than than sector P/E of 4.97.

The EPS is 29.64. The company also has a good dividend track record and declared dividend in the last 5 years. The dividend yield is 4.98% according to CMP of the stock.

2. Steel Authority of India Ltd

The stock of SAIL also witnessed a correction of 2.33% to close at Rs 73.30 apiece in today's trading. The stock has touched its 52-week high of Rs 145.90 apiece and 52-week low of Rs 69.50 apiece. With today's decline, the stock has now just 5.18% away from its 52-week low level. The stock has witnessed a negative return of 26% in 3-month, 34% negative return in 6 months, and a negative return of 42% in 1-year. However, it has given a positive return of 28% in 5 years.

As the stock is falling for a long time, investors can certainly think of investing as the company has strong financials. The P/E of the share is 2.47 which is lesser than the sector P/E of 4.97. The market capitalization of the company is Rs 30,276 crore. The company has declared a dividend of 8.75 per share for the year ending March 2022.

The dividend yield is quite attractive at 11.94% as per the today's current market price of the stock. The company has a strong dividend track report and consistently declared dividend in the last 5 years.

3. Hindalco Industries Ltd

Hindalco is also one of the most beaten-up stocks in today's trading. It tanked 3.50% to end at Rs 385 apiece. The stock has touched its 52-week high and 52-week low at Rs 636 apiece and 359 apiece. With today's decline, the stock is now just 6.75% away from its 52-week low. Hindalco is company with high TTM EPS growth. As the stock is almost touching its 52-week low levels, it also presents an opportunity to investors to invest in the stock. The company has a P/E of 6.31 which is lesser than sector P/E of 12.64. The market capitalization of the company is Rs 86,684 crore at the time of writing the report.
The stock has given a negative return of 8.81% in one month, negative return of 35% in 3 months, and positive return of 0.09% in one year. It has given a positive 92% return in 5 years.
Hindalco has announced a dividend of Rs 4/share for the year ending March 31, 2022. It has a dividend yield of 1.04% as per the current share price of Rs 385. It has good dividend track record and declared dividend consistently for the past 5 years.