The Indian Stock market has slumped over 11.37% in 2022 amid the Russia-Ukraine Crisis and global FII sell-offs. This has given equity investors opportunities to enter into select top stocks that are currently trading at discount.
Buying the stocks and holding them forever, also known as the Coffee can investing approach, can be extremely profitable for the long-term investors, especially when they are able to buy good businesses at a low share price.
Here are two Blue Chip stocks that have corrected significantly during the ongoing market correction.
Hindustan Unilever
Hindustan Unilever Ltd operates as the market leader in the FMCG sector focused on household and personal care products. It is a large cap stock with a market cap of Rs 474,593 Cr.
The stocks are currently trading at Rs 2,019.50, with a TTM PE of 54.17. HUL recently touched the 52-week low of Rs 975.25 and has tanked over 12% within a month. It has a 52-week high of Rs 2,859.30.
In the FY2022 Q3 quarter, HUL posted a 16.76% rise in standalone net profit to ₹2,243 crores.
In Feb 2022, HUL hiked the prices of its products by anywhere between 3% to 13% in multiple tranches in February 2022. They had to do this due to a constant rise in raw material costs due to an increase in crude oil prices that impact transport, logistics as well as material costs.
As per a report dated January 20, 2022, Prabhudas Lilladher has given a ‘buy’ rating on the stock with a target price of ₹2,900.
ICICI Securities has also given a buy call on Hindustan Unilever with a target price of ₹2,500 in Jan-end 2022. The time period given by the analyst is one year.
HDFC Bank
HDFC bank is a leader in the Private Banking sector. It is a large cap stock with a market cap of Rs 757,610.16 Cr.
The stocks are currently trading at Rs 1,366.50, with a TTM PE of 21.02. HDFC Bank has a 52-week low of Rs 1,336.90 and a 52-week high of Rs 1,725.00. The stock has tanked over 10% within a month.
As per a report dated January 22, 2022, Geojit BNP Paribas has given a ‘buy’ rating on the stock with a target price of ₹1,902.
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
