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Buy 3 Bluechip MNC Stocks Near 52-week Lows

Buy 3 Bluechip MNC Stocks Near 52-week Lows
Written by bobby
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Buy 3 Bluechip MNC Stocks Near 52-week Lows

Gillette India

Current market price 52-week low 52-week high
Rs 5240 Rs 5202 Rs 6275

This company as we all know is in the business of manufacturing Blades and Razors, Oral Care, and Portable Power. The stock of Gillette India is very close to its 52-week low price. The unique problem that Gillette India faces is that men these days are not interested in shaving and do keep a beard. This impacts the sales of the company directly as demand remains subdued. The stock of Gillette India is available at a dividend yield of 1.37%, which is not great.

Also, the price to earnings multiples is too high at around 50 times, which does not make the shares attractive. There are better MNC stocks that investors can buy.

Castrol India

Current market price 52-week low 52-week high
Rs 124 Rs 117 Rs 154

This is a subsidiary of Castrol UK and a leading player in automotive and industrial lubricants. The company is an attractive MNC stock to buy at the current levels. The dividend yield on the stock itself works to around 4.4% at the current market price of Rs 124, which should protect any sharp downside on the stock.

Castrol India reported pretty decent numbers for the quarter ending June 2021 and for the half-year, the EPS almost translated to Rs 3.88, in a covid induced period. We believe that the company is capable of reporting an EPS of Rs 10 in 2022, which should take the p/e at the current market price to 12.4. This is not expensive at all for an MNC stock that has low debt, decent cash flows, and good dividend yields. Castrol India is a good stock to buy around the 120 levels.

Whirlpool of India

Whirlpool of India is a top player in the home appliances business and produces refrigerators, microwaves, washing machines, air conditioners, etc. For the quarter ending Sept 30, 2021, the company reported an EPS of Rs 6.19. Based on this quarterly number even if you assume a very optimistic performance for FY 2022-23 and an EPS of Rs 30, the stock is trading at a p/e of 60 times. This is simply too expensive for a company that is unlikely to churn out whopping growth rates.

Rising input costs and fierce competition are always going to be troublesome areas for the company. We believe that amongst the shares that we mentioned Castrol India is best placed in terms of valuations and dividend yields. We suggest investors hence buy the same and avoid buying the stocks of Whirlpool of India and Gillette India.

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bobby

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