Top 5 stocks to buy in the dip


by Shreya Anaokar Last Updated: Sep 07, 2023 - 05:09 pm 32k Views
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On 6th May 2022, the Nifty fell by 252 points. This is another day with another fall in the stock market.

The recent decline in the market has worried investors. There are huge chances of the continuation of this downtrend. But we can use this trend as an opportunity and invest in some good companies at a very low price. We have a list of the top 5 stocks to buy in the dip.

Here is a list of the top 5 stocks to buy in the dip:

1. CDSL:

CMP: Rs.1218 

About the company: 

Central Depository Services (India) Limited operates as a securities depository in India. The Company offers services for a range of clients, such as depositary participants and other capital market intermediaries, corporates, capital market intermediaries, insurance companies, and others.

Positives: 

The Company is almost debt-free. It has delivered good profit growth of 29.42% CAGR over the last 5 years. The Company has been maintaining a healthy dividend payout of 47.20%

Negatives:

Promoter holding has decreased over the last 3 years by 4.00%

 

2. Tata Steel:

CMP: Rs.1284

About the Company: 

Tata Steel has a presence across the entire value chain of steel manufacturing from mining and processing iron ore and coal to producing and distributing finished products. The company has a target to increase domestic steelmaking capacity to 30 MnTPA by 2025.

Positives:

The company has delivered good profit growth of 62.96% CAGR over the last 5 years. The Company has been maintaining a healthy dividend payout of 43.01%

Negatives:

The company might be capitalizing on the interest cost

 

3. Bajaj Finance:

CMP: Rs. 6000

About the company: 

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Bajaj Finance is mainly engaged in the business of lending. BFL has a diversified lending portfolio across retail, SME, and commercial customers with a significant presence in urban and rural India.

Positives:

The company has delivered good profit growth of 30.79% CAGR over the last 5 years

Negatives:

The Company has a low-interest coverage ratio.

 

4. Reliance:

CMP: Rs.2621

About the company: 

Reliance Industries Limited is a Fortune 500 company and the largest private-sector corporation in India. It has evolved from being a textiles and polyester company to an integrated player across energy, materials, retail, entertainment, and digital services.

Positives: 

The Company has reduced debt.

Negatives:

The company has delivered a poor sales growth of 11.34% over the past five years.

 

 

5. TCS:

CMP: Rs.3433

About the company: 

Tata Consultancy Services is the flagship company and a part of the Tata group. It is an IT services, consulting, and business solutions organization that has been partnering with many of the world's largest businesses in their transformation journeys for over 50 years.

Positives: 

The company is almost debt-free. It has been maintaining a healthy dividend payout of 56.35%

Negatives: 

The company has delivered a poor sales growth of 10.20% over the past five years.

 

 

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About the Author

Shreya Anaokar is a Content Writer at 5paisa. She has completed her Master’s in Finance and Graduation in Statistics from the University of Mumbai. 

Disclaimer

Investment/Trading is subject to market risk, past performance doesn’t guarantee future performance. The risk of trading/investment loss in securities markets can be substantial. Also, the above report is compiled from data available on public platforms.
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