Stocks of companies with stock prices lower than Rs. 100 are known as ‘stocks under 100’. These are companies with relatively lower share prices and can be attractive for beginners as they can be considered more accessible.
The article will also go through the features, types and benefits of investing in these stocks.
This article is for educational purposes only. Investing in Penny Stocks is quite risky and it is not advisable to invest in penny stocks without complete knowledge and expertise.
What are Stocks Under Rs 100? :-
Companies whose shares are trading below Rs. 100 are known as ‘stocks under 100.’ Retail investors who may not have large sums of capital to invest can consider these stocks to be affordable. Many investors search for stocks under Rs. 100 as they seek to build a diversified portfolio while managing their risk.
Investors can get started with a smaller investment and potentially earn returns that outpace the market by investing in these stocks.
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Generally, publicly traded companies which trade their stock under 100 rupees. are considered as stocks under 100 Rupees.
An investor can invest any amount in the stock market. If you are a beginner investor, you can invest in stock below 100 Rs. Which does not require a huge amount to be invested as capital and also it’s affordable.
Many investors seek stocks under 100 Rupees as a part of diversification of asset classes in their portfolio. Investors can start investing in fundamentally strong stocks under 100 rupees which would help them to build their assets at less risks.
Types of Stocks Trading Under Rs. 100 :-
Several types of stocks under Rs 100 can be categorised based on their characteristics and investment potential. Here are some common types of stocks under 100.
. Blue-Chip Stocks
. Growth Stocks
. Dividend-Paying Stocks
. Penny Stocks
Top Stocks Under Rs 100 :-
Here are brief overviews of the fundamentally strong stocks under Rs. 100 listed above.
1. Easy Trip Planners Ltd
Easy Trip Planners Limited, along with its subsidiaries, functions as an online travel agency across several countries, including India, the Philippines, Singapore, Thailand, the UAE, the UK, New Zealand, and the US. They offer travel and tourism reservation services through their EaseMyTrip portal, app, Over the last 5 years, the company’s revenue has grown at a yearly rate of 32.15%, higher than the industry average of 2.84%, and its market share increased from 1.34% to 6.57%.
2. Ujjivan Small Finance Bank Ltd
Ujjivan Small Finance Bank Limited offers a range of banking and financial services in India. The bank operates in three segments: Treasury, Retail Banking, and Corporate/Wholesale Banking. It provides various accounts, including current, savings, salary, and NRI accounts, as well as fixed, recurring, TASC fixed, and tax saver fixed deposits. The NBFC company serves mainly to financially unserved and underserved segments of the country i.e. economically active poor. Its main objective is to achieve financial inclusion in the country. Its main business segments are retail and wholesale banking and treasury.
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3. Equitas Small Finance Bank Ltd
Equitas Small Finance Bank Limited offers a range of banking products and services to individuals, corporates, and micro, small, and medium enterprises in India. Operating through segments like treasury, corporate/wholesale banking, retail banking, and other banking Operations, the bank provides fixed deposits and various accounts, including savings, salary, business, current, and TASC accounts. Over the last 5 years, the company’s revenue has grown at a yearly rate of 21.28%, higher than the industry average of 16.98%, and its market share increased from 0.45% to 0.54%.
4. IRB Infrastructure Developers Ltd
IRB Infrastructure Developers Limited, established in 1998 in Mumbai, is a key player in India’s infrastructure development sector. The company operates in two main areas: Build, Operate, and Transfer (BOT)/Toll Operate and Transfer (TOT) and construction. IRB develops, operates, and maintains roadways. It also provides services in real estate, hospitality, and airport development and functions as an investment manager. The midcap company’s market capitalisation is Rs. 40,419 cr. as of 16th July, 2024. It has a net profit margin of 7.39% and a cash flow margin of 26.32%.
5. TV18 Broadcast Ltd
TV18 Broadcast Limited, based in Mumbai and incorporated in 2005, operates a television broadcasting network in India. It runs business news channels including CNBC-TV18, CNBC Awaaz, and CNBC Bajar. The company, formerly known as ibn18 Broadcast Limited, changed its name in June 2011. TV18 Broadcast Limited is a subsidiary of Network18 Media & Investments Limited. Over the last 5 years, the company’s revenue has grown at a yearly rate of 14.27%, higher than the industry average of 5.67%, and its market share increased from 25.76% to 38.09%.
6. SBFC Finance Ltd
SBFC Finance Limited is a financial services platform offering secured MSME loans, loans against gold, and loan management services. Their clients include private, public sector, foreign banks, mutual funds, and asset reconstruction companies. SBFC serves entrepreneurs, individual customers, and micro, small, and medium enterprises. Over the last 5 years, the company’s revenue has grown at a yearly rate of 42%, higher than the industry average of 12.59%, and its market share increased from 0.15% to 0.49%.
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Benefits of Investing in Shares Under 100 :-
There’s an upside to investing in the best stocks under Rs. 100, such as For investing in the best stocks under 100 in, you must read the following benefits it can offer to you.
– Diversification Potential
Investing in a range of shares under 100 can provide diversification benefits to investors, as these stocks may belong to different sectors and industries. Diversification can help investors manage risk by spreading their investments across different below 100 Rs best shares and asset classes. Investing in a variety of stocks under Rs. 100 provides diversification benefits.
– Low-Risk Investment Strategy
Value investing is known for being one of the least risky strategies in the stock market. It follows the principles of buying and holding, highly regarded by investors and shareholders. These principles protect investors from daily market fluctuations.
– Lower Initial Investment requirement
The best government stocks under 100 can offer investors to enter the stock under 100 market with a smaller initial investment. This can be especially beneficial for new investors who may not have large sums of capital to invest. These stocks allow investors to enter the market with a smaller initial investment. This is particularly helpful for new investors with limited capital.
– Power of Compounding
Value investing leverages the advantages of compounding. When you invest in stocks priced under ₹100 over a long period, the returns and dividends you earn are reinvested. This can significantly increase your profit margins. Compounding can transform small investments into substantial sums over time.
– Low-Risk Investment Strategy
Value investing is known for being one of the least risky strategies in the stock market. It follows the principles of buying and holding, highly regarded by investors and shareholders. These principles protect investors from daily market fluctuations.
Tips for Investing in Stocks Under 100 :-
Investing in government stocks under 100 can offer attractive opportunities for retail investors in India, but it is important to approach these investments with caution and a long-term mindset. Here are some tips to consider when investing in stocks under 100:
. Consider Professional Advice
. Research and Due Diligence
. Sticking to a Long-Term Investment Strategy
. Diversification and Risk Management
As always, investors must do their own research and/or consult their financial advisor before investing.
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How To Identify the Stocks Under 100 Rupees? :-
Identifying stocks under 100 Rupees requires a detailed analysis of the companies’ fundamentals and its market conditions. In order to identify the best stocks under 100, you can incorporate below-mentioned filters, as well, to generate a list of fundamentally strong stocks under 100.
The key parameters to consider are stock price, Earnings Per Share, Price to Earnings Ratio, Dividend Per Share, Net Profit Margin, Debt to Equity Ratio, Current Ratio.
– Price-to-Earnings (P/E) Ratio
The P/E ratio compares the stock price with its earnings. A lower P/E ratio might suggest that the stock under 100 is undervalued. However, it’s essential to consider the industry average and the company’s growth prospects.
– Net Profit Margin
Investors can evaluate the net profit margin, which is the ratio of net profit to revenue. A higher net profit margin can indicate that the best share below 100 company is efficient in managing its costs and generating profits.
– Current Ratio
A current ratio above 1 indicates that the top stock under 100 company has more assets than liabilities, which can be a positive sign of liquidity and financial health.
– Debt-to-Equity Ratio
A lower debt-to-equity ratio suggests that the company has a lower level of debt relative to its equity. Companies with lower debt levels may be considered less risky.
– Stock Price
Look for stocks with a current market price below 100 Rs. This is the most straightforward criterion for good shares below 100.
– Dividend Per Share (DPS)
Look for the best share under 100 that pays dividends. A consistent and reasonable dividend per share can be a positive sign and may provide some income for investors.
– Earnings Per Share (EPS)
Investors can evaluate the company’s earnings per share. A higher EPS indicates that the company with a share price under 100 is generating more earnings for each outstanding share. A low-priced stock under 100 Rs with a reasonable EPS may represent good value.
How to Invest in the Best Stocks Under Rs. 100? :-
You should regularly review your portfolio. This will help you in making informed decisions regarding when to hold, buy, or sell your stock.
Investing in stocks priced under Rs. 100 can offer opportunities for growth and value, but it requires a strategic approach to navigate the unique dynamics of these lower-priced shares.
Here are key steps to guide your investment journey in the best stocks to buy today in India for the long term under Rs. 100.
. Long-Term Investment Horizon
Investing in stocks under Rs. 100 requires a long-term perspective to ride out market fluctuations and benefit from the growth potential of these companies. Focus on the intrinsic value and growth prospects of the stocks, rather than short-term price movements, to maximize returns over time.
. Utilise Investment Tools and Resources
Tickertape Stock Screener offers specialised pre-built screens that can be invaluable for investors looking for the best stocks under Rs. 100. These screens are designed to help users identify affordable stocks with the potential for growth, Whether you’re a novice investor or seeking to diversify your portfolio on a budget, start leveraging Tickertape’s pre-built screens to discover top-performing stocks under Rs. 100 today.
. Focus on Fundamentals
Look for fundamentally strong stocks under Rs. 100 that have solid business models, sustainable competitive advantages, and robust financials. Pay attention to factors like earnings growth potential, dividend payouts, and market positioning to identify quality stocks with long-term growth potential.
. Thorough Research and Due Diligence
Before investing in stocks under Rs. 100, conduct thorough research on the companies, their financial performance, growth prospects, and industry trends. Analyse key metrics such as revenue growth, profitability, debt levels, and management quality to assess the fundamental strength of these companies.
. Risk Management Strategies
Implement risk management strategies such as setting stop-loss orders, monitoring market trends, and staying informed about company developments to protect your investments and optimise returns. Stay vigilant about regulatory changes, economic conditions, and industry trends that may impact stocks under Rs. 100.
By conducting thorough research, focusing on fundamentals, diversifying your portfolio, maintaining a long-term perspective, utilising investment tools, and implementing risk management strategies, you can invest strategically in stocks under Rs. 100.
Stay informed, stay disciplined, and stay focused on your investment goals to build a resilient and profitable portfolio of lower-priced stocks in the dynamic Indian market.
Factors to Consider Before Investing in the Best Stock Under 100 Rs :-
. Value Investing
Becoming a value investor may not require a substantial amount of money. This might be due to your current financial situation becoming significant when adopting a long-term perspective on the stock market with patience. Investors can consider stocks under Rs. 100 as it does not require for the investors to spend a lot.
. Market factors
Market factors have an impact on the direction that the price of a stock can take. Market factors are analysed by considering factors such as market volatility, performance of various market indices such as small-cap index, etc.
. Low-Risk Investment Strategy
This strategy creates long-term capital by purchasing and holding the best shares below 100. Value investments expand the investor’s portfolio because of their low volatility.
. Management & Governance
Management and Governance of a company are analysed. It is very important to consider the quality of corporate governance and quality of management of a company, before taking the decision regarding whether to invest in it or not.
. Advantages of Compounding
The greatest advantage of compounding is its ability to patiently grow even the smallest amount of money into a lump sum. You can keep your investment intact by holding onto the returns from stocks under Rs. 100.
. Fundamental factors
Fundamental factors such as profitability of the company, its business model, the industry in which it operates etc. are rigorously analysed by IIFL Securities’ research team.