Weekend Observations 30th Dec 2023

Analysis of companies near 52 week lows

RTI For Money, Lillaney

12/31/20232 min read

86 stocks hit a new 52 week high and 0 stocks hit a new 52 week low on Friday.

287 stocks closed near their 52 week high and 21 stocks closed near their 52 week low.


From the above it seems that the market is in a bullish mood and ignoring the worries related to war, increasing US debt, etc. This could also be because the markets believe that the Fed hike cycle is near its end and the Fed is likely to start lowering rates from Mar 2024 which is just 3 months away. The probability of it happening is more than 73% which will give a huge boost to the bull market underway since Mar 2023 when it hit a bottom during the SVB crisis. As per current estimates Fed will reduce rates by 175 bps during 2024 which will be good for businesses and stock prices.

The near 52 week low list has 6 large cap companies which I see as follows:

Tata Technologies is at a P/E of around 77 which is on the higher side compared to its ROE(21%) and Sales (25%)/EPS(43%) growth. I think KPIT Tech is a better bet in the technology space and one can also consider Netweb Tech on declines which is a play on the AI theme from the hardware/networking space which is getting orders from Nvidia/Intel/AMD and will be also be supplying products to telecom companies when 5G/6G is implemented. I have added more of these on Friday to my portfolio.

Honeywell is at a P/E of around 73 which is on the higher side compared to its ROE(14%) and Sales (17%)/EPS(17%) growth. I would avoid this stock for the time being as there are better alternatives listed above.


SBI Card is at a P/E of around 31 which is on the higher side compared to its ROE(23%) and Sales (24%)/EPS(14%) growth. I would avoid this stock for the time being as there are better alternatives listed above.

Hindustan Zinc is at a P/E of around 16 which is on the lower side compared to its ROE(80%) and Sales / EPS growth which has been contracting for the last year. I would avoid this stock for the time being as there are better alternatives listed above.


Page Industries is at a P/E of around 84 which is on the higher side compared to its ROE(42%) and Sales / EPS growth which has been contracting for the last 3 quarters. I would avoid this stock for the time being as there are better alternatives listed above.

Dabur India is at a P/E of around 56 which is on the higher side compared to its ROE(19%) and Sales / EPS growth which has been in single digits for the last 3 quarters. I would avoid this stock for the time being as there are better alternatives listed above.


Please consult your financial advisor before investing. The above are just my views.

What are your weekend observations?

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