Top high-growth stocks are close to their 52 weeks low.

Top high-growth stocks close to their 52-week low

These days after the corona pandemic, you and I all want good stocks with a low price but it is hard to determining a stock in the stock market. That's why I am here to help you to find those stocks to buy which are fundamentally good and available for discount. 

In this article, I will tell you about 5 large-cap or mid-cap Top high-growth stocks close to their 52-week low. I will also cover the stock's business, potential risks, strengths, and weaknesses from their market data so that you'll get a holistic viewpoint. 

I selected those companies' stocks that meet these criteria which are fundamentally strong and whose market cap is more than 5000 crores. Return on Equity more than 15%. The debt to equity ratio is less than 1. The net profit margin is more than 10%.

Top high-growth stocks close to their 52-week low

First company

In the list of Top high-growth stocks close to their 52-week low, the first company is Procter & Gamble health limited. The company is involved in the manufacturing and marketing of Pharmaceutical and chemicals business.

This company’s stock has traded up 6.74% from its 52-week low. The company specifically focused on the VMS  ( Vitamins, Minerals, and Supplements ) category. Which is the biggest strength of this company. 

The company has some legacy brands like Neurobion, Polybion, Evian, Livogen, Nasivian, Seven seas, etc in the VMC category. That's why the company can expect brand stickiness and consistent earning growth.

 Increasing competition in the pharma and nutrition category is a major risk for the company. Competitive companies like Abbott India, Pfizer ltd, Sanofi India, and AstraZeneca Pharma India ltd are in the field.

Second company

The second company on our list is Rossari Biotech Limited. Manufacturing in Textile Speciality Chemicals is one of the largest companies in India. Stocks of the company are trading up 6.28% from their 52-week low.

The company has strong in-house R&D facilities, the key strength of the company. This company continuously works on process improvement and product innovations. That's how the company can maintain a healthy operating efficiency.

A major concern for the company is the cost of crude oil and raw materials are dependent on foreign exchange rates. Key raw materials like acrylic acid, acetic acid, silicone oil, etc are linked to crude oil and 20% of their raw materials are imported.

Third Company

In our 52 week low stocks list the third company is Supreme Industries Limited. This company is one of the leading companies in India for plastic products Manufacturing. The stock of the company is trading up 5.74% from its 52-week low.

The diversified revenue model is the biggest strength of the company. In FY21 company's revenue breakup like this

Plastic-based products for the piping system - 66%

Industrial goods - 17% 

Consumer goods - 6%

Packaging products - 11%

From the piping system company continuously earning a good market share. The company's major raw materials like Polyvinyl Chloride, High-density Polyethylene, etc are dependent on crude oil and foreign exchange rates.

Which is the potential weakness of the company. Raw materials cost accounts for 65% of the revenue. In this situation, volatility in input prices can affect the company's profit.

Fourth Company

The fourth stock recommendations is HDFC asset management company limited. This is one of the largest AMCs in India. It offers various types of savings and investment products.

The stock of the company is trading up 5.28% from its 52-week low. For the strong brand franchise, distribution network, and operational capabilities of HDFC group. It is the biggest strength of HDFC AMC.

 

If we talk about the weakness then we can see the rising competition and pricing pressure HDFC AMC's market share has declined in the last few quarters. In Q3 FY22 the market share of HDFC AMC is recorded at 11.6% from the down 12.4% in Q1 FY22.

Fifth Company

The fifth company on our list is Sanofi India. This company is involved in manufacturing and selling Pharmaceutical products. The stock of the company is trading up 1.14% from its 52-week low. 

In the Indian OTC drug market, this company has a strong brand presence. This is the key strength of Sanofi India. 

OTC drugs are medicines that don't need any prescription from the doctor. Some leading brands like Allegra, Combiflam, Soframycin, Entrogarmina, E-Cod Plus, etc. Because of the strong brand this company enjoys a healthy net profit margin.

 In December 2020 company's net profit margin was 478 crores and in December 2021 company's net profit margin was increased to 944 crores. Which is almost double. 

But if you analyse deeply you will see the profit of 496 crores has been earned by the company through exceptional items. Which are one-time events. 

These are all selected after research analyst recommendation.