These Stocks are Trading Close to their 52-Week Low
The Indian stock market witnessed a significant decline on February 1, 2018, as concerns over potential tariffs on steel and aluminum imports, following remarks from US President Donald Trump, rattled investor sentiment. The Nifty 50 closed below the critical 23,100 mark, while the Sensex shed over 1,000 points, marking one of the worst single-day declines in recent months.
In the midst of this market volatility, several stocks are trading close to their 52-week low, presenting a buying opportunity for investors. In this post, we will explore three such stocks, namely Vakrangee, Kajaria Ceramics, and Gujarat Gas Limited, and analyze their current situation, financials, and future prospects.
Vakrangee
Vakrangee is an Indian company that provides a range of services, including banking, insurance, and digital payment solutions. The company’s shares have been under pressure in recent times, and are currently trading at a 52-week low of Rs. 97.20.
In the December quarter, Vakrangee reported a net loss of Rs. 14.47 crore, compared to a net profit of Rs. 17.51 crore in the same period last year. The company’s revenue declined by 25.5% to Rs. 64.35 crore, due to a decline in its banking and financial services segment.
However, Vakrangee has a strong pipeline of new projects, including a partnership with the Indian government’s digital payment platform, BHIM. The company is also exploring opportunities in the e-commerce space, and has partnered with a leading e-commerce player to provide digital payment solutions.
Kajaria Ceramics
Kajaria Ceramics is a leading player in the Indian ceramic tiles industry, and is currently trading at a 52-week low of Rs. 354.95.
In the December quarter, Kajaria Ceramics reported a net profit of Rs. 24.17 crore, compared to a net profit of Rs. 34.17 crore in the same period last year. The company’s revenue declined by 8.5% to Rs. 342.17 crore, due to a decline in its sales volume.
Despite the decline in sales, Kajaria Ceramics has a strong order book, and is expecting a recovery in the coming quarters. The company is also investing in new technologies, including digital printing, to improve its product offerings.
Gujarat Gas Limited
Gujarat Gas Limited is a leading player in the Indian natural gas distribution industry, and is currently trading at a 52-week low of Rs. 567.50.
In the December quarter, Gujarat Gas Limited reported a net profit of Rs. 144.68 crore, compared to a net profit of Rs. 171.31 crore in the same period last year. The company’s revenue declined by 12.1% to Rs. 1,435.91 crore, due to a decline in its sales volume.
However, Gujarat Gas Limited has a strong track record of dividend payments, and has a high dividend yield of around 4%. The company is also exploring opportunities in the renewable energy space, and has partnered with a leading renewable energy player to develop wind and solar power projects.
Conclusion
In conclusion, Vakrangee, Kajaria Ceramics, and Gujarat Gas Limited are three stocks that are trading close to their 52-week low. While these stocks have faced challenges in recent times, they have strong financials, a solid track record of dividend payments, and a focus on long-term growth.
Investors who are looking for a buying opportunity in the current market volatility may consider these stocks, but it is essential to conduct thorough research and analysis before making any investment decisions. It is also important to monitor the stocks’ performance and adjust the portfolio accordingly.
