5 Stocks Near 52-Week Highs That Still Look Undervalued

Amid the stock market volatility, a handful of stocks have moved higher. These are not speculative bets or flavour-of-the-month trades. These are businesses with consistent delivery, strong balance sheets, and steady growth.

As a result, their share prices are near 52-week highs.

What makes them interesting is not just their performance but their valuation. Despite the run-up, many of these stocks still trade below or in line with their five-year average multiples. Their fundamentals remain solid and their pricing leaves scope for further upside.

In this piece, we look at five such names.

#1 ICICI Bank

First on our list is the ICICI Bank.

ICICI Bank is India's second-largest private lender with a consolidated asset base exceeding Rs 11 tn.

The bank has over 7,000 branches and a digital backbone that supports everything from mortgages to mutual funds and is known for its strong retail franchise. Its presence spans core banking, insurance, asset management, and securities.

The stock is trading close to its 52-week high. However, valuations remain reasonable as ICICI's current Price-to-Earnings (P/E) ratio stands at 19.7, below its five-year median of 20.5.

What gives ICICI its edge is its low-cost funding moat. With a CASA ratio above 40%, the bank enjoys one of the lowest funding costs among peers.

ICICI Bank posted a 14.8% year-on-year growth in profit after tax to Rs 117.92 bn, in the December quarter. It's core operating profit (excluding dividend income) rose 14.7%, supported by 16% growth in fee income.

Business banking and corporate loans led credit growth, while the retail book of the lender remained steady despite moderation in personal loans.

ICICI's asset quality remains good. Net NPAs were stable at 0.42%, while provisioning coverage stayed healthy at 78.2%.

The lender's capital position remains robust, with CET-1 at 15.93% and total capital adequacy at 16.60%. These buffers give it flexibility to both absorb shocks and seize opportunities.

To know more about the company, check out its financial factsheet and latest quarterly results.

#2 Eicher Motors

Next on our list is Eicher Motors.

Eicher Motors makes motorcycles and commercial vehicles. It owns Royal Enfield, which sells popular bikes like the Classic 350 and Himalayan. It also runs a truck and bus business through a joint venture with Volvo called VE Commercial Vehicles.

In Q3FY25, Eicher reported its highest-ever quarterly results. Consolidated revenue rose 19% YoY to Rs 49.73 bn. EBITDA stood at Rs 12.01 bn with a margin of 24.2%, and profit after tax increased 17.6% YoY to Rs 11.71 bn, including Rs 1.64 bn share of profit from VECV.

Royal Enfield sold 269,039 motorcycles in Q3, up 17% YoY. Domestic volumes reached 241,971 units, while exports rose 71% YoY to 27,068 units.

Festive-season demand was strong, supported by new models like the Goan Classic 350 and Scram 440. The company also debuted its EV brand, Flying Flea, and opened its first fully-owned CKD plant in Thailand.

VECV recorded Q3 volumes of 21,012 units, a new high. Revenue rose 5.8% YoY to Rs 58.01 bn. EBITDA improved to Rs 5.09 bn, with margins at 8.8%. The business gained market share in LMD trucks and buses, and launched its new electric-first small commercial vehicle, the Eicher Pro X.

Eicher Motors currently trades at a price to earnings of 35, compared to its five-year median of 37.

Looking ahead, Eicher continues to invest in new products, brand building, and capacity expansion.

To know more about the company, check out its financial factsheet and latest financial results.

#3 HDFC Bank

Third on our list is HDFC Bank.

HDFC Bank is India's largest private sector lender. It has a strong presence across retail, corporate as well as SME banking.

Post its merger with HDFC Ltd, the bank commands a high market share in most retail loan segments-ranging from home loans and personal loans to vehicle finance. It also has a vast deposit base, a well-diversified asset book, and an enviable track record of consistent profitability.

The stock is currently trading near its 52-week high of Rs 1,924. And yet, from a long-term valuation lens, it looks reasonable. It's PB ratio stands at 2.8, below its five-year median of 3.2.

In Q4FY25, HDFC Bank delivered a 5.3% sequential rise in net profit, supported by 4.6% QoQ growth in net interest income. It's total deposits grew 14% YoY, while loans expanded 4% sequentially. Domestic retail demand remained strong and commercial loan traction picked up pace.

Margins held steady, with net interest margin (NIM) at 3.7% on interest-earning assets. The bank's asset quality remained stable-gross NPA ratio was at 1.3%, net NPA at 0.4%, and provisioning coverage at 68%.

Importantly, the worst of the loan-deposit ratio (LDR) adjustment appears to be behind. From a peak of 104% last year, LDR has dropped to 96% in Q4FY25. It now expects to grow loans in line with industry trends-guiding for 13% YoY loan growth in FY26.

HDFC Bank is back to steady execution, after a few muted quarters post-merger. Deposit momentum is recovering, credit growth is normalising, and valuations are still below historical averages.

To know more about the company, check out its financial factsheet and latest financial results.

#4 Kotak Mahindra Bank

Fourth on our list is Kotak Mahindra Bank.

Kotak Mahindra Bank is one of India's leading private sector lenders. IT enjoys a consolidated customer assets of Rs 4.59 tn and deposits of Rs 4.73 tn as of December 2024.

The bank has a strong presence in secured retail lending, SME finance, and commercial vehicles, and is steadily scaling its footprint in digital banking and fee-based businesses. Through its subsidiaries, it also operates in asset management, capital markets, insurance, and alternate assets.

The stock is currently trading near its 52-week high. Yet, from a valuation perspective, it still appears attractive. Its price to book multiple stands at 3, below the five-year median of 3.8. This indicates that the recent headwinds may still be weighing on investor sentiment.

In Q3FY25, Kotak's standalone PAT was up 10% YoY. Its net interest income rose 10% YoY, with a stable net interest margin (NIM) of 4.93%.

The lender's asset quality metrics held firm, with the NNPA at 0.41% and provision coverage improved to 73%. The bank reported a return on assets (ROA) of 2.1%. Customer assets rose 15% YoY, supported by healthy growth in home loans, SME lending, and secured business banking.

Unsecured retail loans accounted for 10.5% of the loan book, down sequentially due to slower disbursements in microcredit and credit cards. The RBI's digital ban, imposed in April 2024, was lifted in April 2025 after the bank addressed system deficiencies.

Kotak's CET-1 ratio stood at 21.7%, offering strong capital buffers for growth.

Looking ahead, the management intends to grow the business at 1.5-2x nominal GDP while maintaining a conservative approach to risk.

It seem like it is positioned to benefit as regulatory constraints ease, with improving visibility in retail and a strong revival in fee income streams. The lifting of the digital embargo removes a key overhang.

To know more about the company, check out its factsheet and latest quarterly results.

#5 Bajaj Finance

Last on the list is Bajaj Finance.

Bajaj Finance is one of the largest non-banking financial companies (NBFCs). It has assets under management (AUM) of Rs 3.98 tn as of December 2024.

Over the years, the company has built a dominant retail lending franchise, with consumer and mortgage finance together accounting for nearly 80% of total AUM.

Despite its scale, Bajaj Finance continues to post consistent growth. In Q3FY25, it's PAT was up 18% YoY, while profit before tax rose 18%.

Its AUM grew 28% YoY, the highest ever quarterly AUM addition of Rs 241.2 bn. This came on the back of strong disbursements and a 5 m increase in customer additions during the quarter.

Its net interest income rose 23% YoY whereas net total income grew 26%. ROA came in at 4.5%, while ROE stood at 19.1%. The company's cost of funds remained broadly stable, with a liquidity buffer of Rs 136 bn.

Asset quality metrics remained within medium-term guidance. GNPA and NNPA stood at 1.12% and 0.48% respectively. Credit costs stabilised to 2.16% of average assets under finance.

Going ahead, the management aims for credit costs to remain in the 2.0-2.05% range, suggesting the worst is likely behind.

The lender seems well-placed to benefit from regulatory clarity, with stable asset quality and a diversified mix. Capital adequacy remains strong with overall CAR at 21.6% and Tier 1 at 20.8%.

The stock is trading at PB of 4.9, a 10-15% discount to its 10-year average.

To know more about the company, check out its factsheet and latest quarterly results.

Conclusion

Strong stock market phases often tend to blur the lines between price and value. A stock trading near its high may seem expensive at first, but that is not always the case.

In many instances, it reflects sustained performance, improving visibility, and the market's delayed recognition of underlying strength.

Still, it is important to remember that no stock is a one-size-fits-all investment. What looks attractive on paper may not align with an individual's risk profile, financial goals, or investment horizon. Valuations, business cycles, and market sentiment can all shift quickly.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...