Investors often consider blue chip stocks as long-term growth stocks as they can weather market volatility while yielding stable returns. By evaluating the 52-week low of blue chip stocks, an investor can ascertain whether the stock is undervalued or not. Investors prefer investing in undervalued stocks as there is a high chance for the stocks to go higher in the future. While known for their consistency in growth, blue chip stocks have the limitation of minimal fluctuations, thus preventing them from generating enormous returns in the short term. In this blog, with the help of Tickertape Stock Screener, we will identify blue chip stocks at a 52-week low (NSE).
Blue chip stocks are synonymous with reliability and quality. These stocks belong to financially sound companies with a history of stable earnings, often accompanied by regular dividend payments. Their robust business models and market dominance make them a preferred choice for conservative investors.
Note: The data is as of 10th September 2024. The list of blue chip stocks near 52-week low is derived from Nifty 50 using Tickertape Stock Screener. The following filters are used to identify the blue chip shares list –
Stock universe – Nifty 50 Market capitalisation – Large cap% Away from 52W Low – Sorted from Lowest to Highest
🚀 Pro Tip: Explore Tickertape’s Financial Statements for detailed company financial reports to make informed investment decisions.
Interested in investing in the blue chip stocks of India? Smallcases can provide a well-structured way to start. But first, let’s understand what a smallcase is.
What is a smallcase?
smallcases are modern investment products that help investors build low-cost, long-term & diversified portfolios with ease. A smallcase is a basket or portfolio of stocks/ETFs representing an idea – an objective, theme, or strategy. They are created and managed by SEBI-registered experts.
With over 500 smallcases to choose from, here are some of the most popular smallcases you can check out:
Note: The smallcases are mentioned only for educational purposes and are not meant to be recommendatory. Investors must conduct their own research and consult a financial expert before making any investment decisions.
Disclosure for Blue-Chip Value Mix smallcase.Disclosure for Quantace Bluechip Freedom (Monthly Picks) smallcase.
Founded in 1994 by S. P. Hinduja, IndusInd Bank Ltd is one of the leading private sector banks in India, offering a wide range of banking products and financial services to individuals and corporate clients. The bank is known for its strong focus on technology-driven banking solutions and diverse financial offerings.
As of the latest data, IndusInd Bank Ltd has a market capitalisation of Rs. 111,818.08 cr. The stock is priced at Rs. 1,435.55 with a PE ratio of 12.46. The stock is 8.00% above its 52-week low, reflecting some resilience in the market. The bank’s 5-year historical revenue growth is 14.59%, and it has maintained an average return on equity (ROE) of 12.43% over the same period.
Nestle India Ltd, established in 1959, is a subsidiary of the Swiss multinational Nestlé S.A. It is a major player in the FMCG sector, particularly in the food category, with well-known brands like Maggi, Nescafé, and KitKat. The company is renowned for its emphasis on nutrition, health, and wellness products.
Nestle India Ltd has a market capitalisation of Rs. 244,462.05 cr., with a current stock price of Rs. 2,535.50. It has a high PE ratio of 62.16, indicating a premium valuation. The stock is 15.92% above its 52-week low, and the company has achieved a 5-year historical revenue growth rate of 14.95%.
Kotak Mahindra Bank Ltd was founded in 1985 by Uday Kotak. It is one of India’s leading private banks, providing a range of financial services, including personal banking, investment banking, and wealth management. The bank is well-regarded for its strong financial discipline and customer-centric approach.
With a market capitalisation of Rs. 356,191.58 cr., Kotak Mahindra Bank Ltd’s stock price stands at Rs. 1,791.60, and it has a PE ratio of 19.56. The stock is currently 16.05% above its 52-week low. The bank’s 5-year historical revenue growth is 15.44%, and its average ROE over the same period is 13.88%.
Founded in 1987, Bajaj Finance Ltd is a leading consumer finance company in India, known for its diversified lending portfolio, including consumer loans, SME finance, and commercial lendingMumbai Wealth Management. It is part of the Bajaj Group and has consistently maintained a strong market position.
Bajaj Finance Ltd has a market capitalisation of Rs. 447,900.85 cr., with a current stock price of Rs. 7,241.85. The company’s PE ratio is 30.99, and it is 17.03% above its 52-week low. It has posted a robust 5-year historical revenue growth of 24.34%, and its average ROE stands at 19.19%.
HDFC Bank Ltd, established in 1994, is one of India’s largest private sector banks, renowned for its comprehensive range of banking services, including retail, wholesale, and treasury operations. The bank is known for its strong asset quality and stable earnings growth.
As of the latest data, HDFC Bank Ltd has a market capitalisation of Rs. 1,258,116.95 cr. and a stock price of Rs. 1,650.35. The bank’s PE ratio is 19.64, and its stock is 21.03% above its 52-week low. Over the past five years, it has achieved a historical revenue growth rate of 26.87% and an average ROE of 16.69%.
Founded in 1984, Titan Company Ltd is a leader in the Indian market for watches, jewellery, and eyewear. A part of the Tata Group, the company is known for its popular brands, such as Tanishq, Fastrack, and Titan, making it a household name in lifestyle and luxury products.
Titan Company Ltd has a market capitalisation of Rs. 330,643.33 cr., with a stock price of Rs. 3,727.40 and a PE ratio of 94.58. The stock is 21.98% above its 52-week low, and the company’s 5-year historical revenue growth stands at 20.93%, with an average ROE of 25.30%.
Established in 1942, Asian Paints Ltd is India’s leading paint company and the third largest paint company in Asia. The company specialises in manufacturing a wide range of paints for decorative, industrial, and automotive applications.
Asian Paints Ltd has a market capitalisation of Rs. 315,886.10 cr. and a stock price of Rs. 3,295.05. The company’s PE ratio is 57.85, and its stock is 23.41% above its 52-week low. Over the last five years, it has achieved a historical revenue growth rate of 13.23% and an average ROE of 26.47%.
Axis Bank Ltd, founded in 1993, is one of the largest private sector banks in India. The bank provides a wide range of financial services, including retail banking, corporate banking, and international banking. It is known for its extensive branch network and innovative financial products.
Axis Bank Ltd has a market capitalisation of Rs. 367,123.72 cr. and a current stock price of Rs. 1,187.20. The PE ratio is 13.91, and the stock is trading 24.78% above its 52-week low. The bank’s 5-year historical revenue growth rate is 14.46%, with an average ROE of 9.94%.
Maruti Suzuki India Ltd, established in 1981, is the largest car manufacturer in India. Originally a joint venture between the Government of India and Suzuki Motor Corporation of Japan, Maruti Suzuki has become synonymous with the Indian automobile market, offering a wide range of passenger vehicles.
Maruti Suzuki India Ltd has a market capitalisation of Rs. 385,564.45 cr., with a stock price of Rs. 12,263.40. The company’s PE ratio is 28.59, and it is 25.94% above its 52-week low. The 5-year historical revenue growth is 10.49%, with an average ROE of 11.42%.
Founded in 1938 by Henning Holck-Larsen and Soren Kristian Toubro, Larsen and Toubro Ltd (L&T) is a leading Indian multinational engaged in engineering, construction, manufacturing, and technology services. The company plays a significant role in India’s infrastructure development.
Larsen and Toubro Ltd has a market capitalisation of Rs. 494,468.79 cr., and its stock is priced at Rs. 3,596.15. It has a PE ratio of 37.86, and the stock is 26.36% above its 52-week low. The company’s 5-year historical revenue growth rate is 10.32%, and its average ROE over the same period is 11.88%.
In the stock market, blue chip stocks serve as a barometer for the overall economic health. Their performance often mirrors the broader market trends, making them crucial for portfolio stability. Investing in these stocks is considered a safer bet, especially during volatile market conditions.
In the stock market, blue chip stocks serve as a barometer for the overall economic health. Their performance often mirrors the broader market trends, making them crucial for portfolio stability. Investing in these stocks is considered a safer bet, especially during volatile market conditions.
The 52-week high and low markers are critical indicators of a stock’s price range over a year. A 52-week low signifies the lowest price at which a stock has traded during this period, often triggering a mixed reaction among investors about its future prospects.
Traders show increased interest in a stock that nears its 52-week high or low. This is because traders use the 52-week high/low indicator to determine a stock’s entry or exit point. The 52-week high can be used as a resistance level and the 52-week low as a support level.
However, a stock may surpass its 52-week high and continue an upward streak, representing a bullish market sentiment and trend continuation. This scenario indicates that certain factors have caused enough momentum to take the stock price above its 52-week high. As a result, traders believe that the upward momentum will continue, making it ideal for initiating a new long position.
The same logic applies to a stock that falls below its 52-week low. In this case, the trader can go short and sell the stock. However, believing that such an undervalued stock will go higher in the future may be a risky bargain.
Economic downturns significantly influence stock prices. A recession or slowdown in economic growth can lead to diminished investor confidence and reduced spending, thereby impacting corporate earnings and, in turn, their stock prices. This often results in stocks hitting their 52-week lows as investors retreat from the market.
Stocks can also hit 52-week lows due to challenges specific to their industry. For example, rapid technological advancements can render certain products or services obsolete. Additionally, changes in regulations can have a profound impact, either increasing operational costs or changing the market landscape, thereby affecting stock values.
Company-specific issues such as poor earnings reports or management problems can drastically affect a company’s stock price. Investors may lose confidence if a company consistently underperforms or if there are scandals, leadership issues, or operational inefficiencies, leading to a decline in stock price.
The stock market is often influenced by investor psychology and market sentiment. Negative news or pessimistic outlooks can lead to sell-offs, even if a company’s fundamentals remain strong. Media reports and analyst opinions can also significantly sway investor sentiment, pushing stock prices to their 52-week lows.
External factors like geopolitical events or changes in global market dynamics can also lead to stocks reaching 52-week lows. Events like wars, trade disputes, or international policy changes can create uncertainty in the market, causing investors to react negatively.
Potential for Value Investing
One of the key benefits of investing in blue chip stocks at their 52-week low is the potential for value investing. When blue chip stocks are trading at lower prices, it may indicate that they are undervalued relative to their intrinsic worth. For investors with a long-term horizon, buying at these low points could offer substantial returns if the companies recover and their stock prices appreciate.
Dividend Yields
Blue chip stocks are known for their consistent dividend payments. When stock prices fall, dividend yields typically rise, providing an attractive income stream for investors. This can be particularly appealing in a low-interest-rate environment.Jaipur Stock
Stability and Resilience
Blue chip companies usually have robust business models, diversified revenue streams, and strong management teams. Even when their stock prices dip, these companies often have the resilience to bounce back. Investing in them during a downturn might be less risky compared to speculative stocks.
Market Sentiment and Economic Conditions
The decline in the stock price of blue chip companies might be driven by broader market sentiment or adverse economic conditions. For instance, a sluggish economy or geopolitical tensions can negatively impact even the most resilient companies. Investors must consider whether the factors leading to the 52-week low are temporary or indicative of deeper issues.
Company-Specific Challenges
While blue chip stocks are generally considered stable, they are not immune to company-specific problems. Issues such as declining market share, regulatory challenges, or management missteps can have lasting impacts. It is crucial to analyse whether the stock’s decline is due to temporary setbacks or structural weaknesses.
Opportunity Cost
Investing in blue chip stocks at their 52-week low involves an opportunity cost. Capital tied up in these investments might miss out on other opportunities that could provide higher returns. This is especially pertinent in a dynamic market where new growth opportunities frequently emerge.
Financial Health
You might consider evaluating the company’s revenue, profit margins, and historical performance to gauge its financial health. Companies with strong balance sheets and cash flows are better positioned to withstand market fluctuations and recover from downturns.
Valuation Metrics
Valuation metrics, such as the price-to-earnings (P/E) ratio, can provide insights into whether a stock is undervalued. If you find blue-chip stocks with low P/E ratios compared to their historical averages or industry peers, these stocks might present attractive buying opportunities.
Industry Trends
It is crucial to understand industry trends. Some sectors might be more resilient or poised for recovery faster than others. For instance, the technology and healthcare sectors might rebound more quickly compared to cyclical industries like manufacturing or real estate.Hyderabad Stocks
Management and Corporate Governance
You can gain confidence in a company’s ability to navigate challenging times by assessing the quality of its management and corporate governance practices. Strong leadership is often a critical factor in a company’s recovery and long-term success.
Identifying blue chip stocks at their 52-week low can be an effective strategy for spotting quality investments at discounted prices. Blue chip stocks are known for their stability, strong financials, and established market presence, making them appealing even during periods of market correction. Here’s how you can identify blue chip stocks at their 52-week low:
Use a 52-Week Low Stock Screener: Start with a 52 week low stock screener to filter out stocks trading near their lowest point over the past year. You can use Tickertape Stock Screener to find 52-week low stocks NSE, including blue chip stocks at 52-week low NSE, which might indicate buying opportunities.Identify Blue Chip Stocks: From the 52-week low share list, focus on blue chip stocks India. Blue chip stocks typically include large-cap companies known for their resilience, like those found in the blue chip stocks list or blue chip stocks list India. Companies like blue chip India Ltd often feature in indices like Nifty 50, marking them as reliable options.Check Fundamentals: Look for fundamentally strong stocks at 52-week low by examining key financial metrics such as revenue growth, profitability, and debt levels. Blue chip companies in India are often financially sound, even when their stock prices dip.Understand Market Sentiment: Investigate why these blue chip stocks are at a 52-week low. Often, blue chip stocks at 52-week low levels might be impacted by market sentiment, sector-specific challenges, or short-term issues rather than long-term concerns. This insight can help you determine if the price dip is a buying opportunity.Evaluate Valuation Metrics: Analyze valuation metrics like Price-to-Earnings (P/E), Price-to-Book (P/B), and Dividend Yield. Blue chip stocks at 52-week low NSE listings that show attractive valuations compared to their historical averages or industry peers might offer good entry points.Assess Long-Term Potential: Consider the long-term growth prospects of the blue chip stocks India. Companies within the blue chip complex usually have strong market positions and are well-equipped to recover from market downturns, making them attractive for blue chip investment.Look for Low Price Share Opportunities: Some blue chip stocks at their 52-week low might also feature in the low price share list 2024. These stocks can offer the potential for significant returns when market conditions improve.
Identifying blue chip stocks at 52-week lows requires thorough research, but it may provide opportunities for investing in high-quality companies at a lower cost. You can explore the blue chip share list and other resources to find stocks that align with your investment goals.
With Tickertape, you can list stocks trading at 52-week low with one click! Follow the steps mentioned below to get your list of blue chip stocks at 52-week low .
Step 1: Go to the Stock Screener.
Step 2: Click on ‘All Screens’ and Select ‘Near 52W Lows’.
There you go! All the stocks trading at their 52-week lows will appear on the screen. There are over 200 filters that help you customise your list.
By evaluating the 52-week performance of the blue-chip stocks, an investor can get an idea of how the blue chip companies have fared over the past year and use this range to understand the volatility of the stocks. Among 52-week performance and fundamental indicators, Tickertape Stocks Screener is equipped with more than 200 filters to help you make a data-backed decision.
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