In the present dynamic financial landscape, engaging in the stock market has emerged as a favored method to foster wealth. With a plethora of choices accessible, the task of discovering suitable stocks for purchase can be a mix of exhilaration and challenge, especially when seeking options below Rs. 100.
Prior to delving further into this blog, we would like to offer a suggestion that your investments should be grounded in valuation rather than the mere price of the stock. Relying solely on the price might lead you to penny stocks, which, despite their low cost, do not align with the principles of value investing and often entail considerable risks.
Acquiring high-priced stocks tends to be unappealing to the majority of individual investors. Consequently, many individuals seek stocks with more modest pricing. In this blog, our focus will be on presenting the ten best shares under Rs. 100 for long-term investment.
How to Find Multibagger Stocks Below Rs. 100
Engaging in the practice of selecting a suitable stock for personal investment is highly recommended. This is due to the fact that conducting your own analysis and research empowers you to manage your portfolio effectively and make necessary adjustments in response to changing market dynamics.
Conversely, relying on the guidance of others for investment decisions relinquishes your psychological agency over your portfolio, potentially leading to capital losses.
To sum it up, it’s essential to adhere to the following guidelines in order to identify high-potential stocks priced under Rs. 100:
Search for companies displaying robust revenue expansion, escalating earnings, and robust cash inflows. Generally, companies with reduced debt loads tend to possess enhanced stability and more promising avenues for growth.
Scrutinize indicators like Return on Equity (ROE) and Return on Capital Employed (ROCE) to gauge the company’s resource utilization efficiency. Appraise the firm’s valuation measures like the Price-to-Earnings (P/E) ratio, Price-to-Book (P/B) ratio, and Earnings Per Share (EPS).
Recognize industries anticipated to experience growth in the forthcoming years, such as technology, renewable energy, and healthcare. Seek out companies strategically positioned to capitalize on evolving consumer preferences and shifts in industry trends.
Examine the management team of the company along with their historical track record in terms of business choices and their ability to enhance shareholder value. It is imperative to verify that the company adheres to effective corporate governance standards, as these factors can influence the company’s sustained growth over time.
Multibagger stocks typically demand an extended investment timeline. Be ready to retain your investments for multiple years.
As you search for multibagger stocks, maintaining a diversified portfolio is crucial to effectively distribute risk.
Seek Expert Advice
Seek guidance from financial advisors or experts who can offer insights and recommendations grounded in their expertise.
P.S.: Keep in mind that engaging in the stock market comes with inherent risks, and success is not assured. Prior to making any investment choices, conduct comprehensive research and factor in your risk tolerance and financial objectives.
10 Best Shares to Buy Under Rs.100
Looking to invest in stocks below Rs. 100? Look no further! We have compiled a list of the top ten shares to buy today that won’t break the bank. These stocks offer great potential for growth and can help diversify your investment portfolio.
1. IOC Ltd.
Indian Oil Corporation Ltd holds the prestigious classification of being a Maharatna Company, operating under the auspices of the Government of India. The corporation commands a prominent and influential role within India’s oil refining and petroleum marketing sector.
As of August 18, 2023, the market price of IOC shares stands at Rs. 91.4, accompanied by a PE ratio of 5.25 and a market capitalization of Rs. 1,29,068 crore. A comprehensive analysis of the IOC stock has already been published on this website. Please go through this IOC share target price and analysis.
Indian Railway Finance Corporation (IRFC) operates as a financing entity associated with the Indian Railways. As of August 18, 2023, its market price on the NSE stands at Rs. 47.2, contributing to a market capitalization of Rs. 61,684 Crore. Over the past 5 years, IRFC has demonstrated commendable profit growth, achieving a compound annual growth rate (CAGR) of 25.3%. Check out complete study on IRFC stock analysis and target price for 2023 to 2050.
3. Easy Trip Planners Ltd.
As of the writing date of this blog, the price of Easemytrip stock stands at Rs. 37.4, accompanied by a price-to-earnings ratio of 46.5. The company boasts a market capitalization of Rs. 6,483 Crore. Impressively, it achieves a Return on Capital Employed (ROCE) of 54.6% and a Return on Equity (ROE) of 46.9%.
Easy Trip Planners has achieved a compounded sales growth of 34% over 5 years, 45% over 3 years, and an impressive 57% on a trailing twelve-month (TTM) basis. Its compounded profit growth also showcases substantial performance, with a growth rate of 103% over 5 years, 64% over 3 years, and 11% on a TTM basis.
The company’s ownership structure reveals that promoters maintain a significant stake of 71.30%, while Foreign Institutional Investors (FIIs) hold 2.54%, Domestic Institutional Investors (DIIs) hold 2.50%, and the public holds 23.66% stake.
Given these metrics, Easemytrip stock could be considered one of the most promising options for investment, particularly as one of the best stocks available below Rs. 100 in the current market.
Zomato, formerly recognized as FoodieBay, stands as an Indian multinational enterprise with a primary focus on restaurant aggregation and food delivery services. As of the present date (August 18, 2023), the trading value of Zomato’s stock is recorded at Rs. 89.4.
Notably, Zomato has recently announced its first ever quarterly profit, indicating a significant development in its performance. This positive trajectory in its financials has led to expectations of further stock price growth. Consequently, we have included Zomato in our compilation of the finest shares available for purchase below Rs. 100. For more insight, you can delve into the Zomato stock price target and analysis.
5. Utkarsh Small Finance Bank
Utkarsh Small Finance Bank was listed on the stock exchange in July 2023. It has given a huge listing gain. Its share price is Rs. 48.2 with the market cap of Rs. 5,280 Crore and PE ratio of 13. Company has strong fundamentals and it can be a good stock to invest for the long term. Before the investment, you can consider checking the Utkarsh Small Finance Bank share price target and fundamental study.
6. IDFC First Bank Ltd.
Continuing through this lineup, we introduce the IDFC First Bank Ltd. share, currently valued at Rs. 89 as of August 18, 2023. The company commands a substantial market capitalization of Rs. 58,951 Cr. Notably, its Price-to-Earnings (PE) ratio stands at 21.6, suggesting a state of balanced valuations in its present trading scenario.
IDFC First Bank has exhibited commendable compounded sales growth rates, reaching 20% over a span of 5 years, 12% over 3 years, and a notable 37% over the past year. Equally noteworthy is its compounded profit growth rate, standing at 23% over 5 years, 42% over 3 years, and an impressive 121% in the last year.
The stock’s pricing trajectory is a testament to its robust underpinnings, mirroring its sound fundamentals. It has displayed a Compound Annual Growth Rate (CAGR) of 14% over 5 years, 42% over 3 years, and a substantial 95% over the course of the past year.
Established in 1988, Mangalore Refinery and Petrochemicals Limited (MRPL) emerged as a collaborative effort between the AV Birla Group and Hindustan Petroleum Corporation Limited (HPCL). At the time of composing this article, the stock is valued at Rs. 85.8.
It boasts a market capitalization of Rs. 15,029 Crore and a Price-to-Earnings (PE) ratio of 16. The company showcases strong fundamentals, and for deeper insights into MRPL’s fundamentals and share target, you can refer to our previous blog post.
NBCC (India) Ltd stands as a Government of India Navratna Enterprise, functioning under the aegis of the Ministry of Housing and Urban Affairs. The value of NBCC shares is currently set at Rs. 47.4 on the NSE (as of the writing date). In terms of its valuation metrics, the company holds a Price-to-Earnings (PE) ratio of 24.8, and its market capitalization amounts to Rs. 8,528 Crore. Notably, NBCC operates as a debt-free entity.
Before considering investment in this company, it’s advisable to explore our blog post on NBCC share analysis and the projected target price up to 2050 for more comprehensive insights.
9. Rajnandini Metal
Rajnandini Metal Ltd operates within the sphere of manufacturing, trading, or other related dealings involving Steel, Iron, Iron Alloy, Castings, a range of chemicals, furnace oils, and petroleum products. Presently priced at Rs. 8.90, it falls into the category of low-price stocks.
However, it’s essential to note that investing in such stocks can carry a degree of risk, as smaller market cap companies are susceptible to manipulation by stock operators. Despite this, the company’s underlying fundamentals are solid. To gain a comprehensive understanding, I recommend delving into our comprehensive analysis on Rajnandini Metal stock, complete with a target price assessment.
10. Housing & Urban Development Corporation Ltd.
The last entry in our compilation of the top ten shares to purchase under Rs. 100 is HUDCO (Housing & Urban Development Corporation Limited). With a PE ratio of 8.49, it presents an appealing proposition in terms of valuations. HUDCO commands a market capitalization of Rs. 14,740 Crore. Housing & Urban Development Corporation Ltd is chiefly involved in the financing of housing and urban development endeavors within the nation.
Diversifying your portfolio is key to minimizing risk and maximizing returns. By spreading investments across different stocks and industries, investors can mitigate the impact of any single investment on their overall portfolio.
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Disclaimer: We are not SEBI registered advisors. And, information on this website is for educational purpose only.