Last Updated on Jun 18, 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 – June 2024
| Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | % Away From 52W Low (%) | 5Y Historical Revenue Growth (%) | 5Y Avg Return on Equity (%) |
| ITC Ltd | FMCG – Tobacco | 544,583.55 | 433.00 | 26.62 | 8.43 | 7.81 | 24.28 |
| LTIMindtree Ltd | IT Services & Consulting | 143,335.67 | 4,903.55 | 31.28 | 8.64 | 30.02 | 30.02 |
| Asian Paints Ltd | Paints | 275,643.17 | 2,902.45 | 50.48 | 8.70 | 13.23 | 26.47 |
| Bajaj Finserv Ltd | Insurance | 255,081.04 | 1,568.25 | 31.31 | 10.51 | 20.97 | 8.33 |
| Kotak Mahindra Bank Ltd | Private Banks | 338,634.14 | 1,720.00 | 18.84 | 11.41 | 15.44 | 13.53 |
| HDFC Life Insurance Company Ltd | Insurance | 121,519.35 | 571.70 | 77.20 | 11.79 | 21.28 | 18.03 |
| HDFC Bank Ltd | Private Banks | 1,153,545.70 | 1,564.80 | 18.01 | 14.76 | 26.87 | 16.70 |
| Bajaj Finance Ltd | Consumer Finance | 422,525.88 | 7,138.10 | 29.24 | 15.36 | 24.34 | 19.28 |
| SBI Life Insurance Company Ltd | Insurance | 143,843.23 | 1,428.05 | 75.96 | 16.32 | 24.45 | 15.82 |
| Indusind Bank Ltd | Private Banks | 112,235.30 | 1,481.05 | 12.50 | 17.36 | 14.59 | 12.00 |
Note: The data is as of 11th June 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 23,000, ‘% Away from 52W Low’ is capped at 20 to identify stocks trading close to a 52-week low.
🚀 Pro Tip: Explore Tickertape’s Financial Statements for detailed company financial reports to make informed investment decisions.
Tap into the Blue Chip Stocks with smallcases!
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.
Details About 52-Week Low Blue Chip Stocks
Founded in 1910, ITC Ltd is one of India’s foremost private sector companies with a diverse presence in FMCG, hotels, paperboards and specialty papers, packaging, agri-business, and information technology. Originally established as the Imperial Tobacco Company of India Limited, it was renamed ITC Limited in 1974.
As of 11th June 2024, ITC Ltd had a market capitalisation of Rs. 544,583.55 crore and a stock price of Rs. 433.00. The company has a PE ratio of 26.62. Notably, ITC Ltd is currently 8.43% away from its 52-week low, indicating a modest recovery and recent stabilisation in its stock price. This proximity to the 52-week low suggests potential resilience or recent positive market sentiment after hitting its lowest point in the year. Over the past five years, ITC Ltd has achieved a historical revenue growth rate of 7.81% and an average return on equity of 24.28%. Click here to learn more about the stock’s financial performance in comparison to its peers.
LTIMindtree Ltd is a global technology consulting and services company founded in 1999 by ten IT professionals, including Subroto Bagchi, Krishnakumar Natarajan, and Rostow Ravanan. It merged with L&T Infotech in 2022, becoming a significant player in IT services and consulting.
As of 11th June 2024, LTIMindtree Ltd had a market capitalisation of Rs. 143,335.67 crore and a stock price of Rs. 4,903.55. The company has a PE ratio of 31.28. LTIMindtree Ltd is currently 8.64% away from its 52-week low, reflecting a slight uptrend in its stock price. Being close to its 52-week low, the stock shows some recovery potential and resilience in market conditions. Over the past five years, the company has achieved a historical revenue growth rate of 30.02% and an average return on equity of 30.02%. Learn more about the stock’s financial performance here.
Asian Paints Ltd, founded in 1942 by Champaklal H. Choksey, Chimanlal Choksi, Suryakant C. Dani, and Arvind R. Vakil, is India’s leading and Asia’s third-largest paint company. It operates in 15 countries and has 26 paint manufacturing facilities worldwide.
As of 11th June 2024, Asian Paints Ltd had a market capitalisation of Rs. 275,643.17 crore and a stock price of Rs. 2,902.45. The company has a PE ratio of 50.48. Asian Paints Ltd is currently 8.70% away from its 52-week low, indicating moderate growth from its lowest point in the past year. This close proximity to its 52-week low highlights recent challenges and the potential for future upward movement. Over the past five years, Asian Paints has achieved a historical revenue growth rate of 13.23% and an average return on equity of 26.47%. Learn more about the stock’s financial performance here.
Bajaj Finserv Ltd, a part of the Bajaj Group, was founded in April 2007. It operates in the financial services sector, including lending, insurance, and wealth management. The company was demerged from Bajaj Auto to independently manage its financial services.
As of 11th June 2024, Bajaj Finserv Ltd had a market capitalisation of Rs. 255,081.04 crore and a stock price of Rs. 1,568.25. The company has a PE ratio of 31.31. Bajaj Finserv Ltd is currently 10.51% away from its 52-week low, reflecting a positive movement from its lowest stock price in the past year. This distance from the 52-week low underscores a potential recovery trajectory and investor confidence. Over the past five years, Bajaj Finserv has achieved a historical revenue growth rate of 20.97% and an average return on equity of 8.33%. Click here to learn more about the stock’s financial performance in comparison to its peers.
Kotak Mahindra Bank Ltd, founded in 1985 by Uday Kotak, is one of India’s leading private sector banks. It was the first non-banking finance company in India to receive a banking licence from the Reserve Bank of India.
As of 11th June 2024, Kotak Mahindra Bank Ltd had a market capitalisation of Rs. 338,634.14 crore and a stock price of Rs. 1,720.00. The bank has a PE ratio of 18.84. Kotak Mahindra Bank Ltd is currently 11.41% away from its 52-week low, indicating a significant recovery and a stable outlook. This distance from the 52-week low suggests a rebound in market sentiment and a stronger financial position. Over the past five years, the bank has achieved a historical revenue growth rate of 15.44% and an average return on equity of 13.53%. Learn more about the stock’s financial performance here.
HDFC Life Insurance Company Ltd
HDFC Life Insurance Company Ltd, founded in 2000, is one of India’s leading life insurance companies. It was established as a joint venture between Housing Development Finance Corporation Ltd (HDFC) and Standard Life Aberdeen.
As of 11th June 2024, HDFC Life Insurance Company Ltd had a market capitalisation of Rs. 121,519.35 crore and a stock price of Rs. 571.70. The company has a PE ratio of 77.20. HDFC Life is currently 11.79% away from its 52-week low, showing a notable rebound from its lowest point in the past year. This recovery indicates potential investor confidence and a positive outlook for the company’s performance. Over the past five years, HDFC Life has achieved a historical revenue growth rate of 21.28% and an average return on equity of 18.03%. Click here to learn more about the stock’s financial performance in comparison to its peers.
HDFC Bank Ltd, founded in 1994 by Hasmukhbhai Parekh, is one of India’s largest private sector banks. It offers a wide range of banking and financial services to retail and corporate customers.
As of 11th June 2024, HDFC Bank Ltd had a market capitalisation of Rs. 1,153,545.70 crore and a stock price of Rs. 1,564.80. The bank has a PE ratio of 18.01. HDFC Bank Ltd is currently 14.76% away from its 52-week low, highlighting a significant recovery and a strong market position. This distance from the 52-week low suggests robust financial health and growing investor confidence. Over the past five years, HDFC Bank has achieved a historical revenue growth rate of 26.87% and an average return on equity of 16.70%. Learn more about the stock’s financial performance here.
Bajaj Finance Ltd, part of the Bajaj Group, was founded in 1987 and operates in the consumer finance sector, providing a wide range of financial products and services, including personal loans, business loans, and consumer durable loans.
As of 11th June 2024, Bajaj Finance Ltd had a market capitalisation of Rs. 422,525.88 crore and a stock price of Rs. 7,138.10. The company has a PE ratio of 29.24. Bajaj Finance Ltd is currently 15.36% away from its 52-week low, indicating a robust recovery and growth potential. This substantial distance from the 52-week low highlights strong market confidence and positive investor sentiment. Over the past five years, Bajaj Finance has achieved a historical revenue growth rate of 24.34% and an average return on equity of 19.28%. Learn more about the stock’s financial performance here.
SBI Life Insurance Company Ltd
SBI Life Insurance Company Ltd, founded in 2000, is a joint venture between the State Bank of India (SBI) and BNP Paribas Cardif. It is one of the leading life insurance companies in India, offering a range of individual and group insurance solutions.
As of 11th June 2024, SBI Life Insurance Company Ltd had a market capitalisation of Rs. 143,843.23 crore and a stock price of Rs. 1,428.05. The company has a PE ratio of 75.96. SBI Life is currently 16.32% away from its 52-week low, indicating a strong recovery and positive market sentiment. This significant distance from the 52-week low underscores the company’s resilient performance and investor confidence. Over the past five years, SBI Life has achieved a historical revenue growth rate of 24.45% and an average return on equity of 15.82%. Learn more about the stock’s financial performance here.
IndusInd Bank Ltd, founded in 1994 by S. P. Hinduja, is a leading private sector bank in India. It offers a wide range of financial products and services to individuals and businesses.
As of 11th June 2024, IndusInd Bank Ltd had a market capitalisation of Rs. 112,235.30 crore and a stock price of Rs. 1,481.05. The bank has a PE ratio of 12.50. IndusInd Bank Ltd is currently 17.36% away from its 52-week low, reflecting a significant recovery and robust market performance. This considerable distance from the 52-week low highlights strong investor confidence and potential growth prospects. Over the past five years, IndusInd Bank has achieved a historical revenue growth rate of 14.59% and an average return on equity of 12.00%. Learn more about the stock’s financial performance 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.
Are There Any Benefits of Investing in 52-Week Low Blue Chip Stocks?
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.
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.
Risks Associated with Investing in 52-Week Low Blue Chip 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.
Factors to Consider Before Investing in 52-Week Low Blue Chip Stocks
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.
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.
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)?
Blue chip stocks at a 52-week low on the National Stock Exchange (NSE) refer to shares of large, financially sound companies in India that have hit their lowest price point in the past year. These stocks are closely monitored for their potential for recovery and investment opportunities.
What makes a blue chip stock in India undervalued?
An undervalued blue chip stock in India is one whose market price is considered lower than its intrinsic value. Factors such as market volatility, temporary setbacks, or overall economic downturns can lead to undervaluation, presenting potential investment opportunities.
Why is a 52-week low significant for blue chip stocks?
The 52-week low is a key indicator for blue chip stocks as it may signal an undervaluation or a temporary decline in an otherwise stable and profitable company. For investors, this can present a strategic buying opportunity, especially if the fundamentals of the company remain strong.
What are the blue chip stocks on the NSE that are at 52-week lows?
As of 11th June 2024, the blue chip stocks at 52-week low (NSE) are ITC Ltd and LTI Mindtree Ltd. You can search stocks trading at their 52-week low every day on Tickertape. There’s a pre-built screen that helps you get 52-week low blue chip stocks in one click. Check out the screen here.
What strategies should be adopted when investing in blue chip stocks at their 52-week lows, particularly in India?
When investing in 52-week low blue chip stocks in India, it’s important to analyse the reasons behind the low prices, assess the long-term growth potential, and understand market trends. Diversifying investments and setting a long-term perspective are also crucial strategies for mitigating risk.
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 Mutual Funds for Children – Features, Benefits, Risks, Tax, And More - Jun 18, 2024
- Best Battery Stocks in India – 2024 - Jun 18, 2024
- Top 10 REITs (Real Estate Stocks) in India (2024) - Jun 18, 2024
