Stocks under 50, 20, and 10 are considered penny stocks. Investing in stocks priced under Rs. 50 may present an opportunity for investors who are sailing on a modest budget. In this article, let’s look at 50 stocks under Rs. 50 based on various parameters to identify the best stocks. We consider factors such as 5-yr net profit margin, 5-yr return on equity, fundamentally strong, most active, debt-free, and high dividend paying.
Stocks that have a current market price of less than Rs 50 come under this category. Investment in these stocks can be quite risky because of their low liquidity and other inherent risks. IIFL Securities, through its rigorous research capabilities, can advise you on suitable stocks under Rs 50, that you should invest in.
Investing in the stock market is the first objective in every person’s investment list. Where the returns on investment are rewarding, the risks involved in stock investment are significantly high as well. This can pose a threat to investors wanting small investments. Hence, enter our guide listing the best stocks under ₹50.
Read on to learn more about the best stocks to buy under ₹50 and the things to consider when making an investment decision.
What are Stocks Under Rs. 50? :-
Stocks under Rs. 50 are those trading at a share price below Rs. 50 on the stock market. These stocks are often considered penny stocks or low-priced stocks and may belong to companies with smaller market capitalizations.
Investors interested in lower-priced stocks may consider these for potential investment opportunities. although they typically come with higher risks due to their volatility and smaller market presence.
Best stocks to buy under Rs 50 :-
Investing in the stock market is the first objective in every person’s investment list. Where the returns on investment are rewarding, the risks involved in stock investment are significantly high as well. This can pose a threat to investors wanting small investments. Hence, enter our guide listing the best stocks under ₹50.
Here is the overview of the stocks under 50 Rs.
1. Suzlon Energy Ltd
Suzlon Energy Ltd is a major player in wind energy and a pioneer in the Indian renewable energy industry. It lays emphasis on sustainable energy solutions in light of the global shift towards renewable energy sources.
Despite its modest price tag, Suzlon Energy Ltd’s stock has emerged as one of the top performers in its category, capturing the attention of investors seeking value and growth potential.
The company’s strategic initiatives, coupled with the global push towards sustainable energy, have positioned it favourably in the market.
2. Trident Ltd
Trident holds a distinct position in the market thanks to its varied operations in yarn, paper, and textiles. It is a reliable investment option due to its wide range of products and market presence.
On April 18, 1990, Trident Limited, formerly Abhishek Industries Limited, was formed. As a result, on April 18, 2011, the company renamed itself Trident Limited from Abhishek Industries Limited.
The company has grown into a major player in the worldwide textile industry. It is a top producer of Captive Power and Yarn Bath Linen Bed Linen Paper Chemicals.
The headquarters of the company is located in Ludhiana Punjab.
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3. Yes Bank Ltd
YES BANK Limited, an India-based commercial bank, offers a wide array of products and services, emphasizing digital solutions for corporate, retail, and MSME customers. Its offerings span corporate and institutional banking, financial markets, investment banking, corporate finance, branch banking, business and transaction banking, and wealth management.
They entered the retail banking market in 2005 when they partnered with MasterCard International to provide the International Gold and Silver debit card.
Treasury Corporate/Wholesale Banking, Retail Banking, Other Banking Operations, and Retail Banking are the four business sectors of the bank.
Corporate clients can obtain lending, deposit taking, and other services from the Corporate/Wholesale Banking division. Lending, deposits, and other services are the focus of the retail segment.
4. South Indian Bank Ltd
The South Indian Bank was established in 1929 and offers a range of banking services, including retail and corporate banking, as well as para-banking options such as internet, mobile, merchant, debit card, and foreign exchange.
In 1929, South Indian Bank obtained its registration under the Companies Act. On January 29, 1929, it opened for business in Round South, Thrissur.
On August 7, 1946, it was added to the Reserve Bank of India’s second schedule and designated as a scheduled bank thereafter.
It offers retail and corporate banking Para banking facilities like debit card third-party product distribution along with the Treasury and Foreign Exchange Business.
The South Indian Bank has a network of more than 870 B=branches and 1440 ATMs spread throughout the country.
5. Sukama Exports Ltd
Sukama Exports Ltd offers a compelling investment proposition if you are seeking top-performing stocks within the accessible range of Rs 50. Despite its humble share price, Sukama boasts a resilient business model and a promising trajectory that could yield significant returns.
Specialising in export operations, Sukama has strategically positioned itself in lucrative markets, leveraging its expertise to navigate through volatile economic landscapes. With a focus on quality and innovation, the company has carved a niche for itself, demonstrating resilience even in challenging times.
Selection Criteria for the Stocks Under Rs. 50 :-
We have identified three measurable factors that indicate the quality and value of a stock. Let’s see what they mean and why they are important. Here are three primary selection criterias that indicate a stock’s quality and value.
. Market Price
. Low debt-to-equity
. Market capitalisation
. Company’s Financial Health
. Market price and Significance
How to Identify the Best Stocks Under Rs. 50? :-
Let’s have a look at how you can identify the best stocks under Rs. 50.
. Use Stock Screeners
You can use reliable financial platforms or tools such as Tickertape Stock Screener to monitor market trends and identify potential top performers. With over 200+ filters, a custom filter feature, a custom universe, and various pre-built screens, it becomes easy to find the good stocks under Rs. 50 based on your preferred criteria.
. Analyse Financial Reports
Read the company’s annual reports to get a brief overview about its performance, strategies, and future outlook. Examine quarterly earnings reports to track the company’s short-term performance before investing in stocks under Rs. 50.
. Market and Economic Conditions
Choose stocks from sectors that are expected to perform well in the current economic climate.
. Research and News
Stay updated with the latest news about the company, including regulatory changes, product launches, or earnings reports that could impact the stock performance.
How to Invest in Stocks Below Rs. 50? :-
To invest in stocks under Rs. 50, start by researching companies trading at that price range. Utilize stock screeners and financial websites to identify potential candidates. Open a brokerage account with a platform that allows trading of low-priced stocks. Fund your account and place buy orders for the selected stocks. Monitor your investments regularly and consider factors such as company fundamentals and market conditions.
Conduct thorough research on the companies trading at this price range, focusing on their financials, management, and industry trends.
Diversify investments across different sectors and asset classes to manage risk effectively.
Monitor investments regularly and adjust strategies based on market conditions.
Evaluate the company’s fundamentals, including earnings, debt levels, and management quality.
Benefits Of Investing In Stock Under 50 :-
The main benefits of investing in stock under 50 Rs are the possibility of receiving dividends with certain low-priced stocks, offering investors supplementary income streams, and potential capital appreciation.
. High Potential for Growth
Stocks under Rs. 50 often have a higher growth potential compared to their larger counterparts. This is because these companies are typically in the early stages of their growth cycle, offering a higher upside potential.
. Affordability and Higher Share Volume
Stocks under Rs. 50 allows investors to purchase a higher volume of shares with a limited budget, potentially maximising gains if the stock price increases.
. Diversification
Investing in a variety of stocks under Rs. 50 allows for diversification of an investment portfolio, spreading out the potential risks and increasing the chances of hitting a high-growth stock.
. Potential for Discovering Multibagger Stocks
There is a chance to discover multibagger stocks below Rs 50 that could multiply in value over the years, especially if they are fundamentally strong and in a growing industry.
. Tax Benefits
Investing in stocks under Rs. 50 can also provide tax benefits, as the capital gains tax is lower for short-term capital gains.
. Entry Point for Beginners
Stocks under Rs. 50 are an excellent entry point for beginners looking to learn about the stock market without significant investment, making the best shares under 50 ideal for new investors.
Factors to Consider Before Investing :-
Investing in equities, regardless of price, involves critical thought and analysis. Before investing in stocks under ₹50, consider the following factors.
. Company’s Financial Health
Check the company’s balance sheet, profit and loss statements, and cash flow to understand its financial stability.
. Strong Fundamentals
Analysing the fundamental business model of a company is very important. Post this, you must go on to check its growth and profitability over the years. You can use ratios like P/E and P/B to compare its performance with peers. No stocks should have seen negative EPS in the past four to five years.
. Dividend History
Look at the company’s history of paying dividends, which can indicate financial health and investor returns. If you’re looking to generate income from stock investments, a thorough analysis of the stock’s dividend history is crucial. This analysis can provide valuable insights into its growth, returns, profitability, and other pertinent factors.
. Competitive Position
Evaluate the company’s position in the market compared to its competitors. aspects, including its financial health, profitability, revenue growth, debt levels, and management quality. Look for stocks below Rs. 50 with strong fundamentals.
Compare and evaluate the company against its peers to understand better about the industry dynamics and growth prospects.
. Management Quality
Research the company’s leadership team, their experience, and track record in managing the business.
. Investment Strategy
Before you buy a share, you must have an approximate time horizon for which you wish to stay invested in the share. If you plan to do intraday or swing trading, you must have your entry and exit points planned.
Stay informed about the latest news, corporate announcements, management changes, product launches, and regulatory updates related to the company. Significant events can impact the stock’s performance.