12 blue-chip stocks at 52-week lows, should you buy these stocks?


Stocks at 52-week low on May 12

action name minimum of 52 weeks current market price
Amara Raja Drums 494 rupees 500 rupees
Godrej Industries $448.80 453 rupees
ICICI Values $462 464 rupees
naukry $3573 $3601
Nestle Mexico $16196 16297
payment $517 $519
GNP Housing $316 Rs 320.90
RBL Bank $103.80 $103.90
SURF 80.80 rupees $80.85
Sanofi $6351 $6425
SUN TV $417 $419.90
Sundaram Bras $673 701 rupees

Should you buy these stocks at 52-week lows?

Should you buy these stocks at 52-week lows?

Some stocks do not have a history of paying dividends, which is crucial before buying a company’s stock. A classic case is PAYTM. We recommend buying stocks at 52-week lows, only if there is a history of paying dividends over the years. Apart from that, if the company is debt free, it is even better, since the interest rates are increasing. So in this category, we find SUN TV, which is debt free and dividend yields hover around that 2% mark.

Other than this look at a stock in Sanofi. The dividend from this multinational pharmaceutical company is incredible. In fact, it is more than 7%. However, that may be due to extraordinary sales income. But, even if you take the regular declared dividend from earnings, dividend yields should be in the 5-6% range, making Sanofi India shares a good buy.

ICICI Securities and Amara Raja Batteries stocks may be good stocks to buy

ICICI Securities and Amara Raja Batteries stocks may be good stocks to buy

The ICICI stocks in the list above look like a good bet, as stock brokerages are likely to do well due to investment in the poorly penetrated stock market in India. The shares are also available with a dividend of Rs 12.75 per share. Based on FY20-21 dividends, the stock is trading with a dividend yield of over 4%, which is not bad. Amara Raja Batteries is also a good bet as the stock is undervalued. The company’s Amaron battery range is a market leader and we believe the stock has the potential for an uptrend. However, the only concern for stocks is rising input costs. Amara Raja Batteries is the leading manufacturer of LED batteries in the country. Overall, at 14x A/E, the stock looks like an interesting pick. Overall, we think markets could be volatile as well, although these stocks have fallen to 52-week lows. There is a possibility of further decline in some of the stocks. Some stocks like Nestlé are good to buy, but the problem is that the company, like most others in its space, is plagued by high input costs. Stocks like ICICI Securities are also good stock picks, because there are no concerns about input costs, as these are pure service players. So, in the end, we like Sanofi, Sun TV and ICICI Securities stocks on the stocks to buy list, which have hit 52-week lows.

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