8 High Quality Stocks Near 52-Week Lows, Should You Buy?

The market mayhem of this week has left many stocks languishing. In fact, several high quality names have now fallen to either near 52-week lows or 52-week lows. Here are a list of 8 stocks and we throw some insights on whether there are good buys at the current levels. We have taken stocks that are not more than 10% away from their 52-week lows.

LIC Housing Finance

52-week low	Current market price
Rs 339	Rs 351

The problem for LIC Housing Finance stock is that its quarterly results have been bad and not getting any better. It's asset quality has also come under pressure, which is a matter of concern. These are a set of reasons. In fact, for the quarter ending Sept 30, 2021, the total income was down and net profits of the housing finance company was also down. Net profit for the September quarter fell 69 per cent at Rs 248 crore as compared with Rs 791 crore in the year-ago period. Unless earnings do not recover, it is hard to see the stock recovering.

L&T Finance Holdings

52-week low	Current market price
Rs 71.50	Rs 75.50

This company has had a better quarter for the period ending Dec 31, 2021. In a statement, the company said it witnessed strong improvement in disbursements and collections in Q3FY22, and witnessed an all-time high retail quarterly disbursements of about Rs 7,600 crore, up by 29 per cent from a year ago.

The company's gross non-performing assets rose to 5.91 per cent by the end of December 2021 from 5.12 per cent by the year-ago same period. Net profits at the company rose 12% to Rs 326 crores. The stock will react on Monday and let's see how investors react to the numbers, given that they were declared on Friday after market hours.

Policy Bazaar

52-week low	Current market price
Rs 856	Rs 864

The parent company of Policy Bazaar, PB Fintech came up with an IPO of Rs 980 and the share are now stuck at Rs 856. We never fancied the IPO market, considering that most of the IPOs were exorbitantly priced. Is there a further room for downside in Policy Bazaar stock, we believe so.

Amara Raja Batteries

52-week low	Current market price
Rs 584	Rs 614

For some reason this stock has not been moving and slumped to near 52-week lows. This is one of the biggest acid battery players in the country, with a solid brand like Amaron. We believe that the company has been hit by input costs. A focus on e-vehicles and battery technology thereof has remained a focus of the company, which should hold it in good stead for future tech. A good stock to buy as fundamentals remain strong.

Dilip Buildon

52-week low	Current market price
Rs 335	Rs 359

This is a top infra player in the country. The company's stock has been hit by some reports of CBI raids on people linked to the company. In any case Dilip Buildcon's financial performance has not been too great. In case interest costs move higher, the company is likely to be impacted.

REC

52-week low	Current market price
Rs 122	Rs 132

This is a government of India majority owned company, which is a top infra finance player. The stock is exceedingly good for its dividends yields. For 2020-21, REC declared a dividend of 127.10% amounting to Rs 12.71 per share. At the current share price of Rs 132.90 this results in a dividend yield of 9.56%. That is fantastic by any stretch of imagination.

BPCL

52-week low	Current market price
Rs 358	Rs 381

This is a stock whose movement would largely depend on divestment of the government's entire stake, which it is looking at. Should it find suitors at the right price, it could be the next trigger for the stock. The worry for the company right now is that crude oil prices have surged to $85 a barrel. Margin contraction is hence highly possible.

New India Assurance

52-week low	Current market price
Rs 126	Rs 137

Well, we have no take on this government owned company. We are not sure whether investors would make returns or not. The insurance business itself is hard to evaluate. The dividend yields on the stock are not great, neither is the price to earnings ratio.

Disclaimer

Investing in equities is risky and investors must therefore understand the risk. The author and Greynium Information Technologies Pvt Ltd would not be responsible for any losses caused based on the article. The author and is family do not hold shares in any of the above companies.