In this article, you will know about two such stocks whose fundamentals are very good and these stocks are trading around their 52-week low.
By the way, if a stock is trading around its 52-week low, it does not mean at all that the price cannot go down from here. But because the fundamentals of these stocks are good, so you can consider these stocks.
Hindustan Unilever Limited Company
Number 1 Stock is an FMCG company that deals in Home Care, Beauty & Personal Care, and Food & Refreshment Segments. 42% of their revenue comes from the beauty and personal care segment and brands like Dove, Lifebuoy, Lux, Hamam, Pepsodent, Closeup, Fair & Lovely, Vaseline, Sunsilk, and Lakme come under this segment.
29% of their revenue comes from the home care segment, which includes brands like Rin, Vim, Wheel, Surf excel, and Sunlight. And the remaining 29% of revenue comes from the food and refreshment segment which includes brands like Kissan, Knorr, Red label tea, Taj Mahal tea, Horlicks, Boost.
Apart from this, many brands come under this company and they have one or the other brand used in 90% of the family of India.
Now if we look at the fundamentals of this company, its market capitalization is 550730 crores, its return on equity is very good 29.2%, return on capital employed is also 39.2% which is considered very good.
Now talk about its debt, this company has a debt of 1129 crores while its annual profit is 7905 crores and this company also has a free cash flow of 5097. Because its debt is much less than its annual profit, so we will consider it debt-free.
It’s earning per share is Rs 35.8 which is average according to its price and the promoters’ holding here is 61.9%.
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Company’s Pros
- This company is almost debt-free.
- Its last three years’ return on equity is very good 48.81%.
- And this company also gives a good dividend of 92.52%.
Company’s Cons
- This stock is trading higher than its book value.
- Its sales growth of last 5 years is low 7.88%.
- And in the last 3 years, the promoters have decreased their holding but still, the promoters have 61.9% holdings.
Company’s financial trend
The company’s profit has been increasing continuously for the last five years and in 2021 is 7995 crores. And if you look at its quarterly profit, then its quarterly profit is maintained.
According to the last financial year quarter 2 (September 2020), its profit has increased to 2181 crores in quarter 2 (September 2021) of this financial year.
Its 52-week low price is Rs 2120 and its 52-week high price is Rs 2859.30 while its current share price is Rs 2344.85.
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Bajaj Auto Limited
Second Number Stock This is a two-wheeler and three-wheeler manufacturing company which exports to 70+ countries, it is the world’s largest three-wheeler and third largest two-wheeler manufacturing company.
It manufactures mileage bikes, sportbikes, supersport bikes, apart from this, recently this company has also launched electric scooters. This company has also bought 48% of the KTM brand.
In the financial year 2020, their export has grown by 10.2% in the motorcycle segment. The company spends 1.6% of its total revenue on research and development. The result of which is that they have upgraded their 23 motorcycle variants and 12 commercial vehicle variants to BS6 engines which pollute less.
Fundamentals of the company
- The market capitalization of the company is 93949 crores.
- Its return on equity is good 19.8%.
- The return on capital employed is 25.4% which is considered good.
This company has a debt of only 122 crores while its annual profit is 4857 crores and this company also has a free cash flow of 2866 crores.
Because its debt is much less than its annual profit, so it will also be considered debt-free. It’s earning per share is Rs 224 which is good according to its price. Here the holding of promoters is 53.7%.
Company’s pros
- This company is almost debt-free.
- The dividend yield of this company is good at 4.31%.
- The company’s dividend payout is also 61.76% which is considered good.
Company’s cons
- Its sales growth of last 5 years is low.
- And its debtors have also increased slightly.
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Company’s financial trend
Now looking at its financial trend, till 2020 the profit of the company was increasing but in 2021 it has decreased a bit by 4857 crores. But if we look at its quarterly profit, then in the comparison of last 5 quarters in September 2021, it has made the highest profit of 2040 crores.
The 52-week low price of this company is Rs 3161 and the 52-week high price is Rs 4361.40 while its current share price is Rs 3249.55.
By the way, we do not give any target of any stock, our job is to tell you the fundamentals of the stock, after that if you find the stock right, then you can consider it. But keep in mind that this article is only for education purposes, so if you consider these stocks then do it at your own risk.
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FAQ
According to the last financial year quarter 2 (September 2020), its profit has increased to 2181 crores in quarter 2 (September 2021) of this financial year.
Till 2020 the profit of the company was increasing but in 2021 it has decreased a bit by 4857 crores. But if we look at its quarterly profit, then in the comparison of last 5 quarters in September 2021, it has made the highest profit of 2040 crores.