Last Updated on Jan 30, 2024 by Anjali Chourasiya
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).
Table of Contents
What are blue chip stocks?
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.
Blue chip stocks at 52-week low – January 2024
| Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | 5Y Historical Revenue Growth (%) | 5Y Avg Return on Equity (%) | % Away From 52W Low (%) | PE Ratio |
| HDFC Bank Ltd | Private Banks | 10,89,696.18 | 1,444.30 | 15.09 | 16.70 | 4.64 | 23.69 |
| Asian Paints Ltd | Paints | 2,82,781.75 | 2,954.10 | 15.30 | 25.02 | 9.65 | 68.86 |
Note: The data is as of 30th January 2024. The above-mentioned 52-week low blue chip share list 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 – Set to 20 – Sorted from Highest to Lowest
Since the market is currently trading above 21,000, ‘% Away from 52W Low’ is capped at 20 to identify stocks trading close to a 52-week low.
Details about 52-week low blue chip stocks
HDFC Bank Ltd
Founded in 1994, HDFC Bank Limited offers a range of banking services covering commercial and investment banking on the wholesale side and transactional/branch banking on the retail side. Here’s a sneak peek into the financial information of HDFC Bank Ltd.
- Over the last 5 yrs, the stock has had a revenue growth that has averaged 15.32%, vs the industry average of 12.26%. However, during the same period, the net income of the stock has averaged 19.98%, vs the industry average of 28.2%, and it also lags behind in the current ratio.
- Regarding future projections, the stock has higher expectations in terms of returns. However, the expected revenue and earnings growth are less for the next year.
- As per the Tickertape Scorecard, the stock is overvalued and lags behind in financial growth. The stock shows average performance but good profitability (7.9 out of 10).
- There are no red flags in the stock, and it is overpriced but is not in the overbought zone.
Compare the stock with its peers here.
Asian Paints Ltd
Established in 1942, Asian Paints Limited is a paint company. The company is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home decor, bath fittings and providing of related services. Here’s a sneak peek into the financial information of Asian Paints Ltd.
- Over the last 5 yrs, the stock has had a higher revenue growth, net income, debt-to-equity, and free cash flow growth than its industry average. However, during the same period, it lags behind in the current ratio.
- Regarding future projections, the stock’s return, revenue growth, and earnings growth are lower for the next year.
- As per the Tickertape Scorecard, the stock is overvalued and lags behind in the financial growth. In terms of performance, the stock is among the low performers. On the bright side, the stock has a Profitability Score of 7.8 out of 10, and there are no red flags.
- The stock is overpriced but is not in the overbought zone.
Know more about the stock’s financials here.
Importance of blue chip stocks in the stock market
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.
Understanding 52-week highs and lows
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.
Factors that lead to 52-week low
1. Economic downturns
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.
2. Industry-specific challenges
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.
3. Company-specific issues
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.
4. Market sentiment
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.
5. External factors
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.
How to invest in blue chip stocks at 52-week low (NSE)?
With Tickertape, you can list stocks trading at 52-week low with one click! Follow the steps mentioned below to get your list of 52-week low blue chip stocks.
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.
Conclusion
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.
FAQs about blue chip stocks with 52-week low
What are blue chip stocks at a 52-week low (NSE)?
What makes a blue chip stock in India undervalued?
Why is a 52-week low significant for blue chip stocks?
What are the blue chip stocks on the NSE that are at 52-week lows?
What strategies should be adopted when investing in blue chip stocks at their 52-week lows, particularly in India?
As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!
- Best Fundamentally Strong Penny Stocks (2024) - Apr 10, 2024
- Best Liquor Stocks in 2024 - Apr 4, 2024
- All Pharma Penny Stocks in India: Pharma Shares Below Rs. 50 - Apr 2, 2024
