SBI Cards to HDFC AMC — These 5 stocks near 52-week low. Should you buy?

Stock market today: Amid Indian benchmark indices facing huge selloff pressure for more than a week, a good number of quality stocks have either hit or trading near to its 52-week high. Aurobindo Pharma, HDFC AMC, Castrol India, LIC Housing Finance and SBI Cards and Payments Services are some of them. These high-quality stocks have dropped to its 52-week low, which might be a luring option for those positional investors to buy quality stocks at discounted price.

1] Aurobindo Pharma: This pharma stock is down around 3.50 per cent today and currently available at around ₹595 apiece levels whereas its 52-week low is ₹590.10 per shares. Aurobindo Pharma share price has tanked around 11.50 per cent in last 5 trade sessions and currently it is around 55 per cent lower from its 52-weeek high of ₹1063.90 per share levels.

2] HDFC AMC: Share price HDFC Asset Management Company or AMC has hit its 52-week low today. HDFC AMC share today opened with an upside gap of near ₹4 per shares but went on to tumble and hit its intraday low of ₹2129, its new 52-week low. The stock has been under selling heat for last one week as it has crashed more than 10 per cent in this period.

3] Castrol India: Share price of this retail outlet company is at ₹118.75, which is quite close to its 52-week low of ₹112.95 apiece levels. Compared to other quality stocks, Castrol India share price has lost less in the recent stock market crash. In last one week, Castrol India shares have fallen to the tune of near 4.50 per cent.

4] LIC Housing Finance: Shares of this Housing Finance Company (HFC) is trading at around ₹333 apiece levels, which is just ₹3 higher from its 52-week low of ₹330 per shares. LIC Housing share price has dipped around 2.50 per cent in the intraday trade session whereas in last one week it has come down to the tune of near 10 per cent, inching close to its 52-week low.

5] SBI Cards and Payment Services: SBI Cards share price today is around ₹842 per share levels, which is around ₹61 higher from its 52-week low of ₹781.20 apiece. This is also one of the rare quality stocks that have fallen least in last one week stock market crash. SBI Cards share price has fallen around 3.50 per cent in last one week on NSE.

Should you buy?

On whether a positional investor should buy these quality stocks as they are available at discounted price; Saurabh Jain, Assistant Vice President — Research (Retail Equities) at SMC Global Securities said, "Today, best way to add stock in one's portfolio is to look at those stocks that have outperformed key benchmark indices in such free falling markets. If we look at the stocks that have fallen to its 52-week low in recent selloff heat, it is quite clear that net buyers are not with these stocks. So, it's better to look at those stocks that are still able to remain strong in such bear-ridden market. Such stocks are extensively available in banking, real estate and consumer goods segment."

Echoing with Saurabh Jain's views; Sumeet Bagadia, Executive Director at Choice Broking said, "Buying a stock at discounted price is ideal practice in normal circumstances. In such bear dominated market, one should look at those stocks that have managed to hold its fort. However, if someone is interested in buying either of these 5 quality stocks as they are available at discounted price; my suggestion is to buy SBI Cards shares at CMP for one month target of ₹950 to ₹1000 per share levels. However, one must maintain stop loss at ₹780 apiece levels."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.